BRITS who claim working tax credit will be able to get a one-off payment worth £500 in April to help them through the Covid crisis.
The payout is supposed to echo the six month extension to the £20 a week boost in Universal Credit payments.
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When announcing the plans in his Budget, the Chancellor explained that because of the way that the working tax credits system works, people will not be able to get the extra weekly £20.
Instead, the cash will be given in a lump sum – but how do you get it? We explain all we know so far.
Who is eligible for the £500 payment?
If you claim working tax credits, you could get the £500 payment.
Brits will be able to get the cash if they received the following benefits on March 2:
- Working tax credit payments
- Working tax credit and child tax credit payments
Those who get child tax credit payments and are eligible for working tax credit but do not get payments because their income is too high will also be able to get the payment.
You’ll get a £500 payment because of the way that the working tax credits system works.
It will match the extra weekly £20 boost that Universal Credit claimants will get for another six months.
This is what happened last year, when working credit claimants received a one-off lump sum of £1,040.
How do I get it?
You do not need to apply to get the new payment.
HMRC will text you or send you a letter to confirm if you’re eligible for the payment.
If you’re eligible for the payment, you should automatically be paid by April 23.
You should receive it via the same method that you usually get your tax credits paid.
If the payment doesn’t arrive, you can ask for help via the tax credits helpline on 0345 300 3900.
The Budget documents also confirmed that the government will continue
to treat working tax credit claimants who have been furloughed, or experienced a temporary reduction in their working hours, as working their normal hours.
This allows these claimants to remain eligible for Working Tax Credit rather than losing the benefit because the pandemic has impacted their earnings.
How do I claim working tax credit?
You can no longer apply for working tax credit.
This is because it has been replaced by the Universal Credit system, which you can apply for instead.
Lots of people have been switched from Tax Credits to the newer Universal Credit system.
But there are also plenty of people who are still on the old-style system, and the final deadline for being moved across has been pushed back to 2024.
Anyone who hasn’t yet been transferred across will now be eligible for this new one-off £500 payment.