On 6 December 2023, HMRC emailed self-employed taxpayers who are still claiming tax credits to remind them to check their tax credit and self assessment records in advance of migrating to universal credit.

After many years, the end of tax credits is in sight. By the end of the 2023/24 financial year, HMRC plans to have migrated all those claiming solely working tax credit and/or child tax credit to universal credit. Additionally, HMRC plans to have completed the remaining moves of those on tax credits by the end of the following 2024/25 financial year.

Tax credit claimants are advised of their planned migration date in a migration notice letter. This notice sets out what they need to do to make the transition from claiming tax credits to claiming universal credits, as their claim will not be moved automatically.

In some cases, however, claimants may be better off claiming universal credits rather than tax credits. Specialist benefits advice should be sought before deciding to migrate voluntarily as this is not always the case and transitional protection may be lost.

In the meantime, self-employed tax credit claimants are being asked to check that the information on their tax credit record is correct and up-to-date. The email includes links to HMRC’s online tax credits portal and app. Claimants are also reminded to file their self assessment tax return for the tax year 2022/23 by 31 January 2024.

As in previous years, anyone who provided an estimate of their income from self-employment in 2022/23 when renewing their tax credits has until 31 January 2024 to change that estimate to the actual figure. 

Finally, links are provided to various sources of help including HMRC’s YouTube channel and self assessment online portal.

 

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