Mums and dads in working households that receive tax credits may be eligible for a new one-off payment of £500. The new payment is being introduced to provide extra support when the temporary increase in Working Tax Credit ends as planned on 5 April 2021.
Parents in Wallasey and Moreton may get a one-off, tax-free payment of £500 if, on 2 March 2021, they were getting either:
- Working Tax Credit
- Child Tax Credit and were eligible for Working Tax Credit but you did not get a payment because your income is too high to get Working Tax Credit payments
The payment was announced by the Chancellor, Rishi Sunak, to support families to get through the effects of the pandemic on family finances.
People do not need to contact HMRC or apply for the payment. HMRC will contact people by text message or letter in April to confirm they are eligible.
For those who are, payment will be direct to bank accounts by 23 April 2021. The payment will not be seen on the online tax credit service.
The payment is non-taxable and will not affect other benefits and people will not need to declare it as income for Self Assessment tax returns or for tax credit claims and renewals.