Warning to 730,000 Tax Credit claimants as HMRC sends 'final' notices

Nearly 1 million people who receive a certain sort of benefit have been issued a three word warning - "check your mail". Thousands of Tax Credit claimants should have received renewal documents in the post from HMRC.

Earlier this week marked the final day for HMRC to send out its renewal packs, and claimants now have until July 31 to renew their Tax Credits claim. And they have been warned - if you don't scrutinise your letter carefully, you could risk having your benefit payments halted.

It's crucial that claimants understand the two different types of renewal notices and what they signify. Your renewal pack will either contain an "Annual Renewal Notice" or a notice and an "Annual Declaration Form", distinguishable by red and black lines. If your pack has a black line on it and bears the words "check now", it will include the Annual Renewal Notice.

Read more: Martin Lewis shares best £10k option

This implies that your Tax Credit claim will renew automatically after July 31, reports the Mirror.

However, despite your claim renewing automatically, you will need to peruse it to verify all the information in the form is correct and accurate. If it is, then you don't need to take any further action and your Tax Credits will continue at the amount indicated in the letter.

Citizen's Advice has issued a warning to check your tax credit renewal notices for any errors or outdated information, such as incorrect income calculations or changes in living arrangements. If you spot any inaccuracies, it's crucial to contact HMRC with the correct details before the July 31 deadline.

If your notice features a red line and the words "reply now", this means your tax credit claim won't be automatically renewed. Instead, you'll need to complete and return the "Annual Declaration Form" included in your renewal pack.

This applies to around 10,000 people who will receive this specific notice. Those who receive this notice have been getting "provisional" Tax Credit payments since April 6, which will need to be repaid if you fail to renew in time.

Renewing your Tax Credits can be done online via GOV. UK or the HMRC app, by calling HMRC on 0345 300 3900, or by posting your completed renewal pack back to them.

It's estimated that approximately 730,000 Tax Credits customers are due to receive their annual renewal notices, with the majority of claims being automatically renewed.