Everyone who gets tax credits told important code they must find amid five-week deadline

The deadline for renewing tax credits is fast approaching. Renewal packs for those who claim the benefit should have arrived by now ahead of the July 31 deadline.

Many households will have their tax credits renewed automatically and there is a special code on the packs which will confirm this to be the case. Others who need to inform the DWP of changes to their circumstances now have only five weeks to do so.

For those getting automatic renewal, they should see the code 'TC 603 R'. Expert Andy Wood, from Tax Natives, explained: "If you’re eligible for automatic renewal, check for the specified code 'TC 603 R' and accompanying letter in the renewal pack.

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"This streamlines the process and minimises the burden, ensuring continued receipt of tax credits without unnecessary delays. Your tax credits will be automatically renewed if your renewal form has the code 'TC 603 R'." Those whose circumstances have changed over the last 12 months will need to inform the DWP before the July 31 deadline.

Mr Wood added: "If you are a tax credit claimant, you should inform HMRC of any changes in your circumstances, such as changes in living arrangements, childcare situations, or employment status. Failure to do so could result in major financial consequences, such as loss of tax credits or fines of up to £300.

"You have multiple avenues to report changes, including online platforms and phone assistance from HMRC. Using these channels ensures that changes are accurately recorded, providing peace of mind for claimants and keeping the process efficient for HMRC. Having your National Insurance number, details of changes, and income information ready before contacting HMRC can also help streamline the process.

"Non-compliance with reporting requirements can have serious repercussions such as loss of tax credits, repayment demands, and even fines of up to £3000 if incorrect information is provided."