Cashpoint

More than a million hard-up families risk having their tax credits stopped if they miss the deadline to renew claims.

HMRC sent out more than six million renewal packs so people can check their details are accurate and update any changes in their circumstances such as how much they earn.

It reckons 2.8 million of the packs will need to be returned by the July 31 deadline, to ensure people receive the right payments. So far only half have been completed and sent back.

If renewal packs don’t reach HMRC by the end of the month, payments will stop immediately. If any information is incorrect families risk being under or over-paid.

Sarah Ghaffari, tax manager at the Institute of Chartered Accountants in England and Wales, said: “Tax credits are vital to many households across the country and it is imperative that people renew before the July 31 deadline.”

You can renew your tax credit claim at gov.uk/manage-your-tax-credits or call 0345 300 3900.