Families and individuals that receive tax credits should ensure that they renew their tax credit claims by 31 July 2016. Claimants who do not renew on-time may have their payments stopped.

HMRC has begun sending tax credits renewal packs to approximately 5.9 million tax credit claimants. The packs are being sent between April and June. HMRC is encouraging recipients to renew their tax credits claim online. Last year over 750,000 claimants renewed online.

Nick Lodge, HMRC’s Director General, Benefits and Credits, said:

'Our online service means that you can renew at any time of the day or night, and on any device, without having to call us. Online help can also answer most queries you may have and a web chat facility will be available to support people renewing online. We urge everyone who can to go online.'

Claimants need to notify HMRC where there have been changes to the family size, child care costs, number of hours worked and salary. Details of previous year's income also need to be completed on the form to allow HMRC to check if the correct tax credits have been paid. Claimants must also inform HMRC of any changes in circumstances not already reported during the year such as new working hours, different childcare costs or changes in pay.

The child tax credit has been designed to help lower income families with children. Credits are available to families with low to moderate income. Child tax credit is paid directly to the main carer in the family either weekly or monthly and is usually paid directly to a designated bank or building society account. The working tax credit assists taxpayers on low incomes by providing top-up payments.