HMRC has issued an update about letters being issued to some DWP benefit claimants. The matter relates to a historical error where the group is contacting people to get the problem corrected.
A customer contacted HMRC over social media as they were confused about a letter that had arrived on their doorstep. Posting on August 6, they said: “Please could you explain why I received a letter from you yesterday relating to my tax credit claim from 2006-07.”
The social media team initially responded to say they wouldn’t be able to view customer records to confirm the reason for the letter. They also asked the person if the letter showed that they had received an overpayment.
Responding to this, the customer further explained why they were surprised to get the letter. They said: “I’m just wondering why you are sending letters relating to claims from 20 years ago. It’s not showing an underpayment or overpayment.”
‘Incorrect status’
HMRC then offered a potential reason whey the letter may have been sent out to the person. They said: “During the ongoing process of closing tax credits, it was discovered that some awards had an incorrect finalised status and an award notice was not issued when it should have been.
“We are fixing the affected cases and this is generating the issue of finalised award notices. If all the information on the notice is correct, you don’t need to take any action.”
The customer thank HMRC for the clarification, but said they felt it was a “huge waste of money” to be sending out these letters to people, over an issue dating back to 20 years ago.
HMRC has been asked for more details about this issue. Tax credits ended on April 5, 2025, as people on Child Tax Credit or Working Tax Credit have been moved over to the new Universal Credit system, which is administered by the DWP.
Letters going out
People who were previously on tax credits should have been sent an Annual Review letter. Guidance on the Government website explains: “You’ll get a letter called your Annual Review when your tax credits award ends. This will say how much you’ve been paid up to 5 April 2025.
“This is different to your normal tax credits renewal letter. You’ll need to check that the information in the letter is correct (known as ‘finalising’ your tax credits).”
If you notice a mistake in this leter, you should contact HMRC to report it. This has to be done by the deadline written in the letter. The guidance page also warns: “If you do not contact HMRC before the deadline, they’ll use the information they have to finalise your tax credits. You might be underpaid tax credits or overpaid tax credits.”
