HM Revenue and Customs (HMRC) is warning customers with a Post Office card account they have less than eight weeks to update the department with new payment details before the April 5 deadline, or risk having payments paused.
From April 6, 2022, HMRC will stop making Tax Credits, Child Benefit and Guardian’s Allowance payments to Post Office card accounts. HMRC is urging account holders to contact them as soon as possible to update their bank account details to continue receiving payments without disruption.
HMRC said previously that customers can choose to receive their benefits and Tax Credits payments into a bank, building society or credit union account.
In a post on Twitter on February 9, HMRC tweeted: ”Does your Child Benefit or Tax Credits get paid into a Post Office card account? If so, you’ll need to switch to a bank, building society or credit union for your payments to continue. Changes come into effect from 5 April.”
HMRC has been contacting customers since last summer to encourage them to take action and avoid potential disruption to payments from April.
It has also updated guidance on payments on the GOV.UK website and warns: “If you do not give HMRC your bank, building society or credit union account details by 5 April 2022, your payments will stop.”
How to change account details
Child Benefit and Guardian’s Allowance customers can use their Personal Tax Account to provide revised account details, change their bank account details via GOV.UK or by contacting the Child Benefit helpline on 0300 200 3100.
Tax Credits customers can change their bank account details by contacting the Tax Credits helpline on 0345 300 3900.
What if I am unable to open a bank account?
HMRC said that anyone who cannot open a bank account, should contact them as soon as possible.
Commenting on the closure of accounts, Myrtle Lloyd, HMRC’s Director General for Customer Services, said in November: “Time is running out for customers who have been using a Post Office Card account to get payments from us. They need to give us their new account details now to avoid their payments being suspended.
“They can update their details online or by calling us, and they need to be very careful to avoid handing over personal details to fraudsters contacting them claiming to be from HMRC.”
What happens if I do not contact HMRC?
If a customer misses the November 30 deadline, their payments will be paused until they have notified HMRC of their new account details.
The Money Advice and Pensions Service offers information and advice about how to choose the right current account and how to open one.
Last month, the Department for Work and Pensions (DWP) announced that Post Office Card accounts are to be closed this summer.
Following the disruption caused by the coronavirus pandemic, the DWP extended its deadline to ensure everyone has the time to make alternative arrangements - find out more about this here.
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