Final warning for thousands of people to renew HMRC benefits or risk missing out on essential payments

There isn't much time left for thousands of people claiming Tax Credits to renew their benefits.

People claiming Tax Credits should have alraedy received a renewal pack from HMRC in the post which explains the action that needs to be taken or risk losing payments. Two types of renewal packs were sent out to 1.5 million households.

One pack that featured a red line across the first page and the words 'reply now' signified that the claimant needs to renew their Tax Credits. The other pack featured a black line across the first page and the words 'check now' which meant the claimant didn't need to renew their benefit but may need to update their details, the Mirror reports.

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There are a wide variety of factors that could affect Tax Credit payments such as changes to living arrangements, childcare, working hours, or a change in income. Claimants have only until the end of today to renew their claim.

HMRC warned that 171,350 households are yet to take action. You can renew your Tax Credits online through Gov.uk or the HMRC app.

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You can also call the HMRC on 0345 300 3900 or post back the renewal pack you are sent by HMRC. If you need to renew your Tax Credits and you fail to do so by 11.59pm on July 31, your payments may be cancelled.

HMRC will then send you a letter and you'll have to pay back the Tax Credits you’ve received since April 6 this year. The letter should have the code TC607 on it.

Tax Credits are slowly being replaced by Universal Credit. HMRC and the Department for Work and Pensions (DWP) want to switch everyone over to Universal Credit