HMRC is writing to hundreds of thousands of benefit claimants to rectify administrative errors, with some letters relating to claims dating back almost two decades. The issue concerns historical tax credit claims, as the tax credits system has been closed and replaced by Universal Credit.
Letters sent to 170,000 people
The department has sent out 170,000 letters to date. HMRC is continuing to review old records and will write to anyone affected who is due a payment, with details about how to claim it.
HMRC statement
A spokesperson said: "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."
The outreach effort has caused confusion for some former claimants. Writing on social media on August 6, a recipient turned to HMRC after receiving a letter about their claim from two decades ago.
They asked: "Please could you explain why I received a letter from you yesterday relating to my tax credit claim from 2006-07." HMRC's social media team told them they couldn't access customer records, and asked if the issue was to do with an overpayment. The customer responded: "I'm just wondering why you are sending letters relating to claims from 20 years ago. It's not showing an underpayment or overpayment."
Incorrect information
HMRC then told the customer: "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, you don't need to take any action."
Detailed guidance about tax credit claims is available on the Government website.
Which benefits have been replaced by Universal Credit?
These benefits have been ended as they have been replaced by Universal Credit: tax credits, income-based Jobseeker's Allowance (JSA), and Income Support. These benefits will also be ending soon, once the last remaining claimants have been moved over to the new benefit: income-related Employment and Support Allowance (ESA), and Housing Benefit, unless you are in supported or temporary accommodation.
