YOU might have seen a £500 payout enter your bank account since HMRC has introduced the one-off support payment. The cash grant will be given to
YOU might have seen a £500 payout enter your bank account since HMRC has introduced the one-off support payment.
The cash grant will be given to all existing tax credits claimants by the end of next week, and there’s very little you have to do to get it.
If you already receive working tax credits, you could be entitled to the extra £500[/caption]
What is the HMRC C19 £500 support grant?
The £500 payout has been introduced to provide extra support during the pandemic.
Last year an extra £20 a week was added to the Working Tax Credit payments for 12 months.
But since the temporary increase ended with the start of the new tax year, this extra cash is set to help make up the difference in one lump sum instead.
It will match the extra weekly £20 boost that Universal Credit claimants will get for another six months.
How do I get the payment?
You don’t need to get in touch with HMRC or apply to receive the £500.
HMRC will have already contacted you by text message or letter to confirm you are eligible, so no action is needed and you won’t have to pass on any details.
The taxman has warned about fraudsters impersonating the scheme, who might ask you to apply and disclose personal information.
If you are asked to do that then it’s probably a scam.
If you are eligible, you will receive the payment automatically to your bank account by April 23, and some people have started to get the payment already.
You won’t see the payment on the online tax credit service though.
The payment is non-taxable, plus it won’t affect any other benefits you might be owed.
You also won’t need to declare it as income for self assessment tax returns or for tax credit claims and renewals.
Do I qualify for the £500?
You’ll know if you qualify for the extra money if you were either getting Working Tax Credit or Child Tax Credit on March 2.
You’ll also get the one-off payout if you’re eligible for Working Tax Credit, but don’t get those payments because your income is too high.
You can use the gov.uk website to check if you should already be receiving Working Tax Credit.
And if the payment doesn’t arrive by the April 23 date, then you can ask for help via the tax credits helpline on 0345 300 3900.
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The new tax year brought many other tax changes so you can check out our guide here.
If you receive working tax credit, you might have noticed that your payments have gone down.
We also explain how to appeal your HMRC bill if you think the taxman’s got it wrong.