Closure of Tax Credits confirmed for 5 April 2025 in latest phase of move to Universal Credit

HMRC has confirmed that any outstanding Tax Credits awards will end on 5 April 2025 as part of the project to move to Universal Credit. 

Almost all of those who still have an open claim for Tax Credits for this year, 2024-2025 will already have received a Migration Notice Letter from the Department for Communities explaining what they need to do to move to Universal Credit or, for those over State Pension age, Pension Credit.  For more information on the move to  Universal Credit having received a Migration Notice letter visit the gov.uk website here. 

There are currently approximately 66,000 households who have an open claim but are not getting any payment in this tax year, this is referred to as a ‘nil award’. These claimants will not receive the Migration Notice Letters and these awards will end on 5 April 2025.  

However, some of these claimants could have experienced a change of circumstances, such as reduction in their income, that could provide entitlement to Tax Credits for part of this current tax year. In this situation claimants need to act promptly to avail of managed migration and transitional protection. HMRC will be issuing information on 4 February to encourage these people to inform Tax Credits about any in-year change of circumstances, as soon as possible. 

Although awards of Tax Credits will end on 5 April 2025, previous recipients will still be able to contact Tax Credits after this date in relation to overpayments, and HMRC will do their normal finalisation of awards for 2024-2025 later in the tax year.  

Further information  

Those still with an open claim from Tax Credits can use the online service or phone 0345 300 3900 to inform HMRC of any changes to their income or other circumstances.  

Further information on the move to Universal Credit from Tax Credits and other benefits is available here or by contacting Employers For Childcare’s Family Benefits Advice Service on 028 9267 8200.