Where you have claimed working tax credit and/or child tax credit at any time in 2017/18, you need to take action to renew or confirm your tax credits claim by 31 July 2018. It is important to confirm the 2017/18 claim even if the claimant has stopped claiming tax credits during the year, or has been moved on to universal credit.
If the shift to universal credit was made before 6 April 2018, HMRC should have finalised the tax credits claim for 2017/18, so will not send out a renewals pack. However, if the tax credits claim stopped for some other reason, then later in 2018/19 the claimant started claiming universal credit, you may receive two renewals packs from HMRC. This is because HMRC use two different processes to finalise the tax credits claim and to renew the claim. It is important to read the notes with each pack carefully to work out which period it refers to.
Tax credits can be renewed online, but claimants need beware fraudulent websites and other scams connected to tax credit renewals. The claimant should go to “Manage your tax credits” on gov.uk, or alternatively use the HMRC app, or complete the process by phoning the tax credit helpline: 0345 300 3900 (0345 300 3909 textphone).
When using the online service claimants must be careful to enter your income figures after deducting any permitted expenses and deductions, such as gross pension contributions, work expenses, fees and subscriptions. There is more detail on what is permissible in the guidance notes for tax credit renewals.
Written by the Tax Advice Network