Thousands of UK households are being urged to check their post after a major tax credits rule change, as HM Revenue and Customs (HMRC) begins contacting people who may be owed money.
Important Letters Arriving Now
HMRC has started writing to tens of thousands of former Tax Credit claimants who have been identified as being owed payments. This action follows the official end of the tax credits system on 5 April 2025, after which new claims for Child Tax Credit or Working Tax Credit are no longer possible.
Matthew Sheeran, external relations manager at the organisation Money Wellness, issued a clear warning to the public: "If you've claimed tax credits in the past, keep an eye on your post as HMRC is sending out letters about money you might be owed." He confirmed that the letter should explain exactly what is due and how to claim it.
Why Payments Are Owed and How Much to Expect
A spokesperson for HMRC explained the situation, stating: "Tax credits customers have now migrated to Universal Credit. We're currently reviewing historic accounts and writing to any customers we identify with unpaid tax credits, with instructions on how they can receive their payment."
When asked about the potential amounts individuals could receive, Mr Sheeran noted that it is impossible to predict a precise figure for everyone. The final sum depends on individual circumstances, including household income, the number of children, and work history.
What You Need to Do Next
For those who believe they might be owed money, there are proactive steps to take. "If you think you might be owed something, you can check your personal tax account online or give HMRC's tax credits helpline a call," advised Mr Sheeran. He also recommended having any old tax credit paperwork ready, as this can significantly simplify the process if a letter arrives.
It is crucial to understand the difference between the letters you might receive. You will get a letter called your Annual Review when your tax credits award ends. This details how much you were paid up to 5 April 2025. You need to check this information is correct, a process known as 'finalising' your tax credits. If the details are right, you do not need to take any further action regarding the Annual Review.
For anyone feeling overwhelmed, Mr Sheeran suggests seeking support. "If you're struggling, not sure what to do or worried, speak to a trusted friend or family member. Alternatively, organisations like Citizens Advice or Money Wellness can help make sense of it."
Finally, he offered a critical warning on fraud: "To avoid falling victim to fraud, always remember that HMRC will never ask for your bank details out of the blue, by letter, phone or email."
