Tax Credit renewal packs are despatched out to claimants yearly to verify persevering with eligibility for the HMRC profit.

Claimants ought to count on to start out receiving their annual pack from tomorrow (May 2), however with a strict deadline to examine and/or return their purposes by July 31, HMRC is warning Britons to be cautious of potential fraudsters.

An announcement from the tax authority reads: “Criminals use deadlines, like the one for Tax Credits renewals, to trick people who might be expecting to hear from HMRC into sharing their banking or other personal details.”

It continued: “If a phone call, text or email is unexpected, do not give out private information or reply, and do not download attachments or click on links.

“It is ok to reject, refuse or ignore any requests - only criminals will try to rush or panic people. HMRC is also warning people not to share their login details with anyone else.”

READ MORE: Martin Lewis tip secures couple £750 tax refund

Up to 1.5 million Tax Credit renewal packs are as a result of be issued, and greater than 500,000 clients might want to reply to HMRC by the deadline to verify their circumstances for the 2023 to 2024 tax 12 months. If they fail to take action, they may threat having their funds stopped.

There can be two kinds of renewal packs despatched out, and it’s essential to know the distinction so as to understand how precisely to reply. It might additionally assist individuals decipher what might be a rip-off.

If somebody receives a pack with a pink line throughout the primary web page that claims “reply now”, they might want to verify their circumstances to resume their Tax Credits.

But if it receives a pack with a black line throughout the primary web page that claims “check now”, clients simply might want to examine that their particulars are appropriate. If they're, HMRC says individuals don't must do something and their Tax Credits can be routinely renewed.

Eligible Tax Credit claimants can even begin receiving the primary £301 instalment of the cost of living payment tomorrow, however as soon as once more, Britons are being warned of the potential rip-off goal this creates.

An announcement from the Department of Work and Pensions (DWP) reads: “You do not need to apply. If you’re eligible, you’ll be paid automatically in the same way you usually get your benefit or Tax Credits. This includes if you’re found to be eligible at a later date.

“If you have had a message asking you to apply or contact someone about the payment, this might be a scam.”

Who is eligible for the Tax Credit price of dwelling cost?

To be eligible, individuals should have obtained a cost of Tax Credits for any day within the interval between January 26, 2023, to February 25, 2023. People can be eligible if they're later discovered to have been entitled to cost throughout this era.

Those getting each Child Tax Credit and Working Tax Credit will obtain a price of dwelling cost for the Child Tax Credit solely, paid by HMRC.

It also needs to be famous that those that get each Tax Credits from HMRC and a low-income profit from DWP won't get a price of dwelling cost from each HMRC and the DWP - it should often be paid by the DWP solely.

The following two price of dwelling funds can be value £300 and £299, and these can be distributed to most individuals in autumn 2023 and spring 2024, respectively. Details about eligibility durations for these funds can be launched nearer to the time.