26 November 2024
HMRC Tax Credits Exercise
Tax credits are ending and there will be no live tax credit awards from 6 April 2025 onwards.
Until that time, existing claimants are being invited to claim universal credit or pension credit instead of tax credits, in line with the migration plans . A small number of existing tax credit claimants will not be invited to move to universal credit or pension credit if they are not entitled to alternative support.
In preparation for drawing the tax credit system to a close, HMRC are undertaking some work to clear a small number of old tax credit awards that have not been fully finalised. They have also identified a small number of cases where they need to re-visit the in-year finalisation calculation. In these exercises, where HMRC identify an underpayment of tax credits, they will send any payments they owe to the claimant.
HMRC are undertaking the work in a staggered approach and claimants may receive letters and revised award notices from HMRC about old tax credit awards as part of this work.
Any claimants who are unsure whether communication they receive from HMRC is genuine can contact HMRC’s tax credits helpline or follow the information on GOV.UK .