More than 170,000 tax credit recipients are being warned they have just one week to act or risk having their payments stopped.

HMRC is urging tax credits customers to renew their annual claim before the July 31 deadline.

Customers who received a renewal pack with a red line across the first page and the words ‘reply now’ must respond to HMRC or risk having their payments stopped.

Customers whose packs had a black line across the first page and the words ‘check now’ only need to update HMRC if their details have changed.

Greenock Telegraph: By the end of 2024, tax credits will be replaced by Universal CreditBy the end of 2024, tax credits will be replaced by Universal Credit (Image: HMRC)

‘Reply now’ customers must tell HMRC about their current circumstances. Life changes HMRC needs to know about include:

  • relationship changes, including marriage or separation
  • changes to the cost of childcare
  • your child leaves home
  • working hours fall below 30 hours a week

The full list of changes that could affect customers’ tax credits is on GOV.UK.

‘Reply now’ customers must respond to the request for information even if there have been no changes to their circumstances.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We know tax credits offer vital financial support for our customers so it is important that you renew by the deadline on 31 July. It is quick and easy to renew online at GOV.UK or using the HMRC app, just search ‘manage my tax credits’ on GOV.UK.”

By the end of 2024, tax credits will be replaced by Universal Credit. Customers who receive tax credits will receive a letter from the Department for Work and Pensions telling them when to claim Universal Credit, or from the Department for Communities if they live in Northern Ireland.

It is important that customers claim by the deadline in the letter to continue receiving financial support as their tax credits will end even if they decide not to claim Universal Credit.