More than 320,000 taxpayers had their tax credits stopped or altered after they failed to inform HM Revenue & Customs (HMRC) of changes in circumstances, a new report has revealed.
In a new announcement, HMRC has warned families and carers about the urgency to log in to personal tax accounts and renew their tax credits.
The report comes ahead of the 31 July tax credits renewal deadline, before which taxpayers must tell HMRC about changes such as changes in working hours, income and childcare costs.
Tax credits are available to those who look after at least one child or young person or those on a low income.
If you are already claiming tax credits, you need to renew your payments annually. If you are making a claim for the first time, taxpayers need to make a claim by contacting HMRC. It is important this is done as soon as practically possible, as your claim can be back-dated by just one month.
HMRC has advised that the easiest and quickest way to do this is by using its online service. It says 59 per cent of customers choose to use its digital services, which can be used 24 hours a day and skip frustrating telephone queues.
Angela MacDonald, Director General of Customer Services, said: “We’ve improved our services so customers can renew their tax credits at a time that’s convenient to them but the 31 July deadline is fast approaching.
“There is a wealth of support available at all times of the day and night from HMRC via GOV.UK, the app, or Alexa to help customers get their renewal right.
“I urge customers who have yet to renew their tax credits to do so as soon as possible, to avoid their payments being stopped.”