Renewing tax credits: when is the deadline and do you need to contact DWP?
The deadline for renewing tax credits is near. Renewal packs for those who claim the benefit should now have arrived.
But when is the deadline and do you need to contact DWP to renew tax credits?
When is the deadline for renewing tax credits?
The deadline to renew tax credits is July 31. A statement from HMRC said: “By the end of 2024, tax credits will be replaced by Universal Credit. Customers who receive tax credits will receive a letter from the Department for Work and Pensions telling them when to claim Universal Credit, or from the Department for Communities if they live in Northern Ireland.
“It is important that customers claim by the deadline in the letter to continue receiving financial support as their tax credits will end even if they decide not to claim Universal Credit.”
Do you need to contact DWP to renew tax credits?
Households who have their tax credits renewed automatically will have a special code on the packs confirming this. Those getting automatic renewal should see the code 'TC 603 R'.
"If you’re eligible for automatic renewal, check for the specified code 'TC 603 R' and accompanying letter in the renewal pack,” expert Andy Wood, from Tax Natives, explained.
Others who need to inform the DWP of changes to their circumstances now have only five weeks to do so.
Universal Credit has been gradually replacing tax credits for several years and claimants of the benefit have been encouraged to understand the changes.
Tax credit was introduced in 2003 for people who work and have a low income but it has been slowly integrated into the umbrella of Universal Credit since 2017.
The Government is now winding down tax credits completely.
How to apply to Universal Credit
Universal Credit has been a key policy of the Tory Government since 2010 and unites all other types of benefit under one place.
Most people claiming tax credit might want to consider Universal Credit even if they do not end up claiming the new benefit type.
You will not automatically be moved from tax credit to Universal Credit.
HMRC has said to look out for a letter called a Universal Credit Migration Notice from the Department for Work and Pensions (DWP) explaining what you’ll need to do, and by when.
Claimants can use an independent benefits calculator to find out what can be claimed. Universal Credit also offers access to a work coach.
