HMRC have published new guidance about the new one off payment of £500 to be paid to households as compensation for loss of the £1000 uplift in Working Tax Credit made last financial year.
The important points are as follows:-
- You do not need to apply for this payment - it is automatic.
- Payments should be received by 23rd April.
- To be entitled for the payment on 2nd March 2021 you must be either receiving Working Tax Credit or Child Tax Credit but were also eligible for Working Tax Credit but did not get a payment because your income was too high.
- Text messages will be sent to you if HMRC has your details - it will say 'HMRC: One off £500 payment by 23rd April for working households receiving tax credits - its automatic no action needed. The message will contain NO LINK. This is very important as mimic messages may be sent which may look authentic and will contain a link from scammers.
- From 19th April letters will be sent.
- Payment will be made automatically into the same bank account that they have details of.
- The online Tax Credit service will not show this one off £500 payment - so you need to check your own bank account for the reference HMRC19 Support for the payment.
- If there is no payment made by the end of April you should contact HMRC on 0345 300 3900.
- This payment has NO EFFECT on Universal Credit or Housing Benefit or Tax Credits. It is not subject to Income Tax or National Insurance contributions and does not have to be declared on self-assessment forms.