From 5 April 2025, new tax credit claims permanently closed. For the thousands of people still receiving tax credits, there is one critical fact: all remaining tax credits and legacy benefit payments stop on 1 April 2026. This is a firm deadline, not a guideline.
This 2026 guide covers exactly what existing claimants must do, the deadlines involved, how transitional protection works, and what to do if you have not yet received a migration notice, with all updates from the DWP and Citizens Advice confirmed as of March 2026.
Key Takeaways
- All tax credits permanently stop on 1 April 2026, this is a firm, final deadline with no extensions.
- You do not move to Universal Credit automatically, you must claim UC after receiving your migration notice from DWP.
- Missing your personal deadline means losing transitional protection, which could reduce your monthly income significantly.
- Self-employed claimants face monthly reporting on UC unlike the annual renewal process under tax credits.
- At State Pension age? Apply for Pension Credit, not Universal Credit call 0800 99 1234 to check eligibility.
2026 Critical Deadlines, Do Not Miss These
| Deadline / Event | What Happens |
| 5 April 2025 | New tax credit claims permanently closed |
| December 2025 | Final migration notices issued by DWP |
| 3 months from your notice date | Your personal deadline to claim UC – missing this loses transitional protection |
| 1 April 2026 | ALL legacy benefits and tax credits stop permanently |
ACTION REQUIRED NOW: If you have received a migration notice, claim Universal Credit before your personal deadline on the letter – not just before April 2026. Your individual deadline may be sooner.
What Were Tax Credits?
Before April 2025, tax credits were HMRC-administered payments to support working individuals and families on low to moderate incomes. They were separate from the DWP benefit system.
There were two types:
- Working Tax Credit: For people meeting minimum working hours. Included elements for disability, childcare, and severe disability.
- Child Tax Credit: For those responsible for children or qualifying young people, regardless of work status.
Tax credits ended on 5 April 2025. They have been replaced by Universal Credit, which consolidates them, and five other legacy benefits, into one monthly payment administered by the DWP.
Managed Migration: What It Is and How It Affects You
Managed migration is the process by which the DWP moves people from legacy benefits, including tax credits, to Universal Credit. You do not move automatically. You must actively claim Universal Credit after receiving a formal migration notice from DWP.
CONFIRMED MARCH 2026: Citizens Advice confirms all legacy benefits end on 1 April 2026. The DWP issued final migration notices in December 2025 and is increasing notice volumes monthly to meet this deadline. If you have not received a notice but are still on tax credits, contact DWP immediately.
Who Is Being Migrated?
- Former Working Tax Credit or Child Tax Credit claimants not yet moved to UC
- Income-related Employment and Support Allowance (ESA) claimants with or without Housing Benefit
- Income Support and income-based Jobseeker’s Allowance (JSA) claimants
- NOT affected by managed migration: Contributory/New-Style ESA (renamed 1 December 2025), Carer’s Allowance, PIP, DLA, and Council Tax Reduction
What Happens When You Receive Your Migration Notice
- Your deadline is at least 3 months from the date the notice is issued
- You must claim Universal Credit before that deadline to avoid a gap in payments and to protect transitional protection entitlement
- If you claim before the deadline: you may qualify for transitional protection (see below)
- If you claim after the deadline: your legacy benefit stops on the deadline date and you lose transitional protection
- If you claim within one month after the deadline, your UC award is backdated to the original deadline date
- DWP sends reminder letters at 7 weeks and 10 weeks after the migration notice if you have not yet claimed
Transitional Protection: How to Avoid Losing Money
If your Universal Credit entitlement is lower than your current legacy benefit amount, you may qualify for transitional protection, a top-up that brings your UC award up to the level of your legacy benefit at the point of migration.
How It Works
- Claim before your personal migration notice deadline , this is the only way to qualify. Claiming after the deadline means losing it entirely.
- The transitional element is added to your monthly UC payment to make up the shortfall
- It is not permanent: it erodes over time as UC rates increase or your circumstances change, but it never increases, only decreases
Key Cases for Transitional Protection
- Savings over £16,000: If you had capital above £16,000 at migration, your savings are disregarded for UC eligibility for up to 12 months. After this, normal UC savings rules apply and you will lose eligibility if savings remain above £16,000.
- Self-employed claimants: Receive a 12-month grace period from the minimum income floor (the level DWP expects you to earn). After 12 months, the floor applies regardless of transitional protection.
- Families with looked-after disabled children: Some families may NOT be fully transitionally protected due to differences in how UC treats children in residential settings. Seek specialist welfare advice if this applies to you.
- Young people aged 16–19 in education: If you received tax credits for a young person who turned 19 before 1 September 2024 and remains in full-time non-advanced education, you may not have received full transitional protection. This may be open to challenge.
How to Apply for Universal Credit
If you have received a migration notice, apply for Universal Credit as soon as possible, well before your deadline date.
- Go to GOV.UK and search ‘Apply for Universal Credit’, the application is online only
- Create a GOV.UK Verify account and provide household, income, savings, and housing cost details
- Book and attend an initial interview at your local Jobcentre Plus (usually within 7 days of applying)
- Provide supporting evidence: payslips, self-employment accounts (if self-employed), tenancy agreement, and proof of identity
- Keep your online UC journal updated with all changes to income, hours worked, housing costs, and household circumstances
Processing time: Universal Credit normally takes 5 weeks from claim date to first payment. If you cannot manage financially during the wait, apply for an advance payment, this is a loan repayable through future UC deductions.
IMPORTANT: Council Tax Reduction does NOT transfer automatically. When you migrate to UC, contact your local council separately to continue receiving Council Tax Support. Some people have their council tax support removed without realising it after migrating.
If You Are at State Pension Age: Closure Notices and Pension Credit
If you have reached State Pension age and received Child Tax Credit or Working Tax Credit, you may have received a ‘tax credit closure notice’ from HMRC, not a migration notice. This is a different document. It means your tax credits are ending, but it does not tell you to claim Universal Credit.
- Check Pension Credit eligibility instead, it is the primary financial support for people over State Pension age and may be more generous than Universal Credit for your situation
- Pension Credit tops up your weekly income and can also unlock Housing Benefit, Council Tax Reduction, the Warm Home Discount, and a free TV licence for over-75s
- Pension Credit helpline: 0800 99 1234 (Monday to Friday, 8am to 6pm)
- Check eligibility using the Pension Credit calculator on GOV.UK before applying
Self-Employed Claimants: Key Differences Under Universal Credit
The move from tax credits to Universal Credit is a more significant change for self-employed people than for employees. Understanding these differences before you migrate is important.
- Tax credits used your annual self-employment profit, reported at annual renewal time
- Universal Credit requires monthly reporting of income and expenses through your UC online journal , much more frequent
- Minimum income floor: After the first 12 months on UC, DWP calculates your entitlement as if you earn at least the National Living Wage for your expected hours, even if your actual earnings are lower. This can significantly reduce UC for lower-earning self-employed people.
- Transitional protection delays the minimum income floor for 12 months from migration, but does not remove it permanently
Speak to a welfare rights adviser or accountant before your migration deadline if you are self-employed. The monthly reporting requirement and minimum income floor are the two biggest practical changes.
Overpayments and How to Appeal
Why Overpayments Happen
Tax credit overpayments most commonly arise when income, working hours, or childcare costs change and are not reported to HMRC promptly. Because tax credits were assessed annually, mid-year changes created discrepancies that only surfaced at renewal.
If You Have Been Overpaid
- Notify HMRC immediately via the tax credits helpline (0345 300 3900) or your online account
- Do not ignore HMRC letters, delays increase the total amount owed
- Request a repayment plan if you cannot repay in full, HMRC negotiates manageable instalments
- Keep records of all correspondence, change reports, payslips, and childcare receipts
Before migrating to UC: seek debt advice on any outstanding overpayments. The DWP can deduct tax credit overpayment repayments directly from your Universal Credit award.
How to Appeal a Decision
- Request a mandatory reconsideration within 30 days of the decision letter, in writing to HMRC with supporting evidence
- If unsuccessful, appeal to an independent tribunal via GOV.UK
- Citizens Advice (0800 144 8444) offers free support throughout the process
Tax Credits vs Universal Credit: What Changes in 2026
| Feature | Tax Credits (Existing / Closing) | Universal Credit (New System) |
| Status | Closing, ends 1 April 2026 | Open, permanent system |
| Administering body | HMRC | DWP |
| Benefits included | Working Tax Credit & Child Tax Credit only | Replaces 6 benefits in one payment |
| Payment frequency | Monthly or 4-weekly | Monthly only |
| Eligibility assessed on | Annual income | Monthly household income & savings |
| Self-employment | Annual profit at renewal | Monthly reporting; minimum income floor after 12 months |
| Savings over £16,000 | No exclusion | Normally excludes you (12-month disregard at migration) |
| Council Tax help | Separate claim | NOT included, claim from your local council separately |
| Reporting requirement | Annual renewal + change reports | Real-time monthly updates via UC journal |
| End date | 1 April 2026, all remaining claims end | Ongoing permanent system |
Conclusion
The 1 April 2026 deadline is firm and approaching. All remaining tax credits and legacy benefit payments stop on that date. If you have not yet claimed Universal Credit and you receive a migration notice, act before your personal deadline on the letter, not just before April 2026. Missing your individual deadline means losing transitional protection, which could reduce your monthly income by a significant amount.
For those already migrated: keep your UC journal updated monthly, report all changes promptly, and check Council Tax Reduction with your local council if you have not done so already.
If you are at State Pension age, check Pension Credit eligibility before assuming Universal Credit is the right benefit for you.
FAQ:
Can I still apply for tax credits?
No. New claims permanently closed on 5 April 2025. Apply for Universal Credit (or Pension Credit if you are at State Pension age).
When do all tax credits stop?
All legacy benefits including tax credits stop on 1 April 2026. If you have not received a migration notice but are still receiving tax credits, contact DWP immediately: 0800 328 5644.
Do I move to Universal Credit automatically?
No. You must actively claim Universal Credit after receiving a migration notice. Your payments do not transfer automatically.
What is transitional protection and how do I get it?
If your UC entitlement is lower than your legacy benefit, you receive a top-up to make up the difference. You must claim UC before your migration notice deadline to qualify. It reduces over time as circumstances change.
What happens if I have more than £16,000 in savings?
Normally UC is not available to people with over £16,000 savings. However, tax credit claimants who had over £16,000 at the point of migration receive a 12-month transitional capital disregard, savings are ignored for one year. After that, normal UC rules apply.
I am self-employed. What changes?
You will need to report income and expenses monthly via your UC journal, instead of annually at tax credit renewal. After a 12-month grace period, the minimum income floor applies, UC is calculated as if you earn at least minimum wage for your expected hours, even if actual earnings are lower.
What if I miss my migration notice deadline?
Your legacy benefit stops on the deadline date and you lose transitional protection. If you claim UC within one month of the deadline, the award is backdated to the deadline date. Beyond one month, you lose that backdating too.
I am at State Pension age, what should I do?
Check Pension Credit eligibility before assuming Universal Credit applies to you. You may have received a tax credit closure notice rather than a migration notice. Call the Pension Credit helpline: 0800 99 1234.
What is the DWP helpline number?
0800 328 5644 (Monday to Friday, 8am to 6pm). Citizens Advice: 0800 144 8444. Pension Credit: 0800 99 1234.
Parul is a content specialist with expertise in accounting and bookkeeping. Her writing covers a wide range of accounting topics such as payroll, financial reporting and more. Her content is well-researched and she has a strong understanding of accounting terms and industry-specific terminologies. As a subject matter expert, she simplifies complex concepts into clear, practical insights, helping businesses with accurate tips and solutions to make informed decisions.