HM Revenue & Customs has sounded the alarm for hundreds of thousands of families across Britain as a crucial benefits deadline looms. An estimated 730,000 tax credit claimants face having their payments abruptly stopped if they fail to act promptly.
The £3,150 Deadline You Can't Afford to Miss
Families receiving tax credits have until July 31st to confirm their circumstances with HMRC or risk losing vital financial support. The average affected household could see over £3,150 annually disappear from their budgets if they don't complete the mandatory review.
What's Changing and Why It Matters
This year marks a significant shift in how HMRC manages tax credit renewals. Unlike previous years where many renewals were processed automatically, every single claimant must now actively confirm their details to continue receiving payments.
Myrtle Lloyd, HMRC's Director General for Customer Services, emphasised the urgency: "We want to make sure families receive the money they're entitled to, so it's crucial that claimants complete their renewal by the July 31 deadline. If anyone needs help, they can access support via the HMRC app or GOV.UK."
Who Needs to Take Immediate Action?
The warning specifically targets claimants who received an annual review notice in May or June with the prominent message: "Check now that your details are correct." These individuals face the most immediate risk of payment disruption.
How to Protect Your Payments
- Check your post and HMRC app for renewal notices
- Verify all personal and financial information remains accurate
- Report any changes in circumstances, relationships, or childcare costs
- Use the HMRC app for the quickest resolution
- Contact HMRC directly if you need assistance meeting the deadline
The Bigger Picture: Universal Credit Transition
This crackdown comes as the government continues its massive push to move claimants from traditional tax credits to Universal Credit. Many families are finding themselves navigating this complex transition during the ongoing cost of living crisis, adding financial pressure to already stretched household budgets.
Experts warn that missing this deadline could have devastating consequences for families relying on this income to cover essential expenses like food, utilities, and housing costs.
With less than a month to act, affected claimants are urged to prioritise this administrative task to avoid financial hardship and potential disruption to their benefit payments.
