£500 One-off Payment

photo of woman carrying her baby while working on her laptop

A £500 one-off payment for working households receiving tax credits was announced as part of the UK Government Budget.  

Further guidance has now been released which confirms that the new payment is being introduced to provide extra support when the temporary increase in working tax credits – that was introduced in April 2020 in response to the Covid-19 pandemic – ends as planned on 5 April 2021, the new guidance advises that –

  • applications for the new payment are not required as HMRC will contact claimants by text message or letter in April 2021 to confirm eligibility;
  • eligible claimants will include those who, on 2 March 2021, receive working tax credit payments; both working tax credit and child tax credit payments; or child tax credit payments where they are eligible for working tax credit but do not get a payment because their income is too high; and
  • the £500 payment should be paid to eligible claimants by 23 April 2021.

Full details can be found here

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