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New one-off payment of £500 for working households receiving tax credits

New one-off £500 payment for working households receiving tax credits

If you’re part of a working household that receives tax credits, you 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.

You do not need to contact HMRC or apply for the payment. HMRC will contact you by text message or letter in April to confirm 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 for Self Assessment tax returns or for tax credit claims and renewals.

If you would like an appointment with Elaine, our independent welfare rights advisor, please contact Lyndsay or John at the office.

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