The deadline to update and manage tax credit claims is 31 July 2023 and HMRC is reminding people to not leave it until the last minute and to complete the renewal as soon as possible.

Just over 300,000 customers who received a renewal pack with a red line across the first page still need to confirm their circumstances for the current tax year.

These include changes to living arrangements, childcare, working hours or a change in income, the tax authority said.

HMRC issued two types of renewal packs to 1.5 million claimants between 2 May and 15 June 2023. These included ‘reply now’ packs, which had a red line across the first page, asking for confirmation for claimants to renew their tax credits.

The other type, titled ‘check now’, displayed a black line across the page, meaning that claimants do not need to make any changes – with the credits being automatically renewed.

Myrtle Lloyd, HMRC’s director-general for customer services, said: ‘Please act now to meet the 31 July deadline for renewing your tax credits or your payments could stop. For details on how to renew, search ‘manage my tax credits’ on GOV.UK.’

HMRC has warned that tax credit claimants should not ignore any letter, especially since they will soon be replaced by Universal Credit by the end of 2024.

Those who receive tax credits will receive a letter from the Department for Work and Pensions (DWP) to inform them when they can claim Universal Credit.