Are You Eligible for £500 One off Tax Credit Payment from HMRC?

HMRC’s payment will be automatic for those who are eligible.

If you were in receipt of Working Tax Credits, or Child Tax Credits, on 2nd March 2021, you may be eligible for a one-off payment of £500.

HMRC will confirm the payment with you by sending out a text message to the mobile number that you have registered with them, or they will confirm by letter to the address you have registered with them.

The body of their text message to you will read:

“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.”.

Be wary of text messages containing internet links.

The public is being advised that HMRC will not provide any clickable internet links on this text message, and that individuals must be careful not to click on any links from text messages that are similar or the same as this text message in order to avoid any scam texters.

This payment is being made as the temporary £20 per week increase that has been added to Working and Child Tax Credit, due to Covid-19, will be coming to an end on April 5th 2021.

In receipt of Child Tax Credits but not Working Tax Credits? Still Eligible.

Even those whose income was too high to receive Working Tax Credits but who are in receipt of Child Tax Credit payments, should also receive this one-off payment.

This payment should be automatic and is non-tax deductible, meaning that you will not need to declare it on your annual self-assessment or tax return.

You are advised to make sure that your contact and bank details are up to date with HMRC in order to receive this payment if you are eligible.

To find out more details, view the latest government guidance here.

by Rosalie Priday.