One-off £500 payment for working households receiving tax-credits

As part of the March 2021 Budget, the Chancellor announced that the temporary £20 weekly uplift in Universal Credits would continue for a further six months, until the end of September 2021. It was also confirmed that Working Tax Credit claimants would receive equivalent support. It appears that it was operationally difficult for this support to be delivered on a periodic basis and the government therefore decided to deliver this support via a £500, one-off payment.

The one-off payment provides extra support following the end of the 2020-21 tax year. It is though that more than a million households up and down the country will be eligible for the one-off payment if, on 2 March 2021, they were getting either:

  • Working Tax Credit
  • Child Tax Credit and were eligible for Working Tax Credit but did not get a payment because their income was too high to get Working Tax Credit payments

There is no requirement to contact HMRC or apply for the payment. 

HMRC will make contact by text message or letter during April to confirm if you are eligible.

If you are eligible, you should get your payment direct to your bank account by 23 April 2021. You will not see the payment on the online tax credit service.

The payment is non-taxable and will not affect your benefits. You do not need to declare it as income on your Self-Assessment tax returns or for tax credit claims and renewals.

Source: HM Revenue & Customs Wed, 14 Apr 2021 00:00:00 +0100

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