Tax Credits one off payment

Mrs_Chelle

Evening! All those entitled to WTC will receive a one-off payment of £500 by end of April. I've been informed by text that I'll receive this.

Just wondering - when I look at future payments I'll receive, my one-off payment will actually be £420. My tax credits will then drop by £80 per month until I renew in July.

Why is this? Is it because I've been overpaid? I can't find reference anywhere regarding those who'll receive less than the £500 and why.

TFYH

calcotti

So without the one off payment your Tax Credit payment would be £80 less so you are getting the £500. As to why your Tax Credits have dropped by £80 there is no way for us to know.

Deleted last sentence because ladysummerisle has spotted the reason, it's the removal of the temporary £20/week increase in response to COVID.

ladysummerisle

Hmm, it says on the link below that the one off payment won’t show on the system online https://www.gov.uk/guidance/new-one-off-500-payment-for-working-households-receiving-tax-credits

Also did tax credits go up last year at all due to covid? I know universal credit had extra £20 a week. Could this be it and it’s reverting to normal?

poppy12345

ladysummerisle said:

Also did tax credits go up last year at all due to covid? I know universal credit had extra £20 a week. Could this be it and it’s reverting to normal?

WTC increased by the same amount as UC did. WTC will now be £20 per week less, which is why there's the £500 one off payment.

strawb_shortcake

My system does show a one off payment but not in relation to the £500. There usually is a one off payment every April as the payments adjust for the new FY, this should be in your award letter.

Mrs_Chelle

Thank you everyone x

me123

Hi can I ask what your text said and what number it was from? I had a text from a 5 digit number starting 608. We get child but not working which is reduced due to income x

calcotti

me123 said:

Hi can I ask what your text said and what number it was from? I had a text from a 5 digit number starting 608. We get child but not working which is reduced due to income x

If you set the conditions for WTC then your annual statement will show that the calculation is based on both WTC and CTC. Your income then means that no WTC is payable but some CTC are. If this issue the case then you are entitled to the £500.

If your calculation is based on CTC only then you are not eligible.

It is the eligibility requirements for WTC that matters, not being in receipt of WTC.

Maff332020

Me123 - Hope this helps a little. 

This week we’ve started to contact our customers directly about the payment.

Text messages will be sent to customers we have contact details for. This message reads:

HMRC: One-off £500 payment by 23 April for working households receiving tax credits – it's automatic so no action needed. Search 'one-off payment' on GOV.UK

From 19 April we will also be sending letters to eligible households to confirm that they will receive the one-off £500 payment.

Messages we send to customers will not include a link and customers do not need to take any action to receive the payments. Customers should be reminded to stay vigilant about scams, which may mimic HMRC messages as a way of appearing authentic.

me123

Maff332020 said:

Me123 - Hope this helps a little. 

This week we’ve started to contact our customers directly about the payment.

Text messages will be sent to customers we have contact details for. This message reads:

HMRC: One-off £500 payment by 23 April for working households receiving tax credits – it's automatic so no action needed. Search 'one-off payment' on GOV.UK

From 19 April we will also be sending letters to eligible households to confirm that they will receive the one-off £500 payment.

Messages we send to customers will not include a link and customers do not need to take any action to receive the payments. Customers should be reminded to stay vigilant about scams, which may mimic HMRC messages as a way of appearing authentic.

Thank you so much - that was the text I received ☺️

merrydance

Can someone advise me of the amount a couple can earn and still get working tax credit?  Googled it and got so many different answers. Thank you