Households working across the UK could be eligible for a new one-off payment of £ 500 from HMRC.
People who receive tax credits may be eligible to receive the payment – introduced to provide additional financial support after the temporary increase in the labor tax credit ends – in April.
The payment was announced as part of Chancellor Rishi Sunak’s 2021 budget in March.
Tax credit applicants received additional support early last year due to the pandemic, with standard rates increased by £ 20 per week.
So who is eligible for the £ 500 sum and when will it be paid?
Here’s all you need to know.
Who is eligible for payment?
You can qualify for a one-time, tax-free payment of £ 500 if, on March 2, 2021, you received either:
– Child tax credit and were eligible for the tax credit for work, but you did not receive payment because your income is too high.
Do you need to request payment?
Those eligible to receive payment will not need to contact HMRC to apply.
Instead, you’ll receive a text or letter from them in April to confirm your eligibility.
The text message reads: ‘HMRC: One-off payment of £ 500 by April 23 for working households with tax credits – it’s automatic, so no action needed. Look for “one-off payment” on GOV.UK. “
It is important to note that messages sent by HMRC will not include a link and that no action needs to be taken to receive the £ 500.
Eligible people should be aware of scammers, the government warned, who can imitate HMRC messages in a way that appears genuine.
When will the £ 500 be paid?
HMRC said eligible people will receive payment directly to their bank account by April 23, 2021.
It will automatically appear in the same bank account to which your tax credits are usually paid.
The payment will not appear on the online tax credits service.
Instead, applicants should check their bank records for “HMRC C19 Support”.
It is also tax-free and you will not be required to report it as income for self-assessment tax returns or credit applications and renewals.
In addition, the single payment will have no impact on the benefits you already receive, such as housing allowance or universal credit.
If your bank statement does not show payment at the end of April, you should contact HMRC.
What is the tax credit for work?
The work tax credit is a benefit you are entitled to if you already receive the child tax credit and work a specific number of hours per week, according to the government.
For 25 to 59 year olds, it is at least 30 hours per week. And if you’re over 60, disabled, or single-parent, you must work at least 16 hours per week to be eligible.
If you can’t claim the work tax credit, you can claim the universal credit instead.
The core element of operational tax credit payments has been increased from £ 1,045 per year to £ 3,040 from 6 April 2020 to provide additional support during the coronavirus crisis.
However, this increase ended on April 5, 2021.
This is where the new one-off payment of £ 500 comes in – to provide additional support due to the end of the labor tax credit increase.
You can find out if you currently have a working tax credit here.
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Source: www.bedfordtoday.co.uk
This notice was published: 2021-04-17 09:42:10
