HMRC is reviewing old records and writing to thousands of people who may be owed money due to errors in tax credit accounts. The department has already issued 170,000 letters, with more investigations ongoing.
Who is affected?
The issue affects people who were previously on Working Tax Credit or Child Tax Credit. These benefits have ended, replaced by Universal Credit. However, mistakes in records mean some claimants did not receive an award notice when they should have.
One claimant was surprised to receive a letter about their claim from the 2006/2007 tax year. They contacted HMRC on social media, asking: "I'm just wondering why you are sending letters relating to claims from 20 years ago. It's not showing an underpayment or overpayment."
HMRC's response
HMRC said in response: "During the ongoing process of closing tax credits, it was discovered that some awards had an incorrect finalised status and an award notice was not issued when it should have been. We are fixing the affected cases and this is generating the issue of finalised award notices."
If all the information on the notice is correct, no action is needed. The department added: "Tax credits ended on 5 April 2025 with customers migrating to Universal Credit. We're reviewing historic accounts and writing to any customers we identify with unresolved awards including unpaid tax credits, with instructions on how they can receive their payment."
Universal Credit rollout
All claims for tax credits, income-based Jobseeker's Allowance, and Income Support have closed, as they are replaced by Universal Credit. Income-related Employment and Support Allowance and Housing Benefit (unless in supported or temporary accommodation) will also end soon.
