Health

COVID tax credit 2021 has been abolished and replaced with a one-time payment of £ 500

If you receive work Tax creditYou may have noticed that your payment has changed this week.

Increased Working Tax Credits have been introduced to help those in distress Household problems As a result of the COVID-19 pandemic.Prime Minister Rishi Sunak From April 6, 2020 to April 5, 2021, we introduced a financial assistance initiative that raised the basic element of Working Tax Credit from £ 1,045 to £ 3,040.

The Treasury is currently exchanging ongoing financial support for one-time payments. This means that instead of a £ 80 / month tax increase, working tax claimants will receive a one-time payment of £ 500 on April 23.

The snack was announced on March 3rd and also announced £ 20 a week. Universal credit The uplift continues. “The £ 20 weekly universal credit hike will continue for another six months to support low-income households,” Sunak told Commons.

“The government’s plan to increase working tax credits for households facing financial difficulties during the coronavirus outbreak was welcomed by British families last year,” said a personal finance expert at money.co.uk. Says James Andrews. “But in support of the one-time £ 500 payment on April 23, the increased payment is now being scrapped.

“This payment, coupled with an extension of the Universal Credit hike announced earlier this year, is expected to cost the government a total of £ 3 billion.”

Who is eligible for a £ 500 payment?

You may be eligible for a £ 500 payment if you receive the following on March 2, 2021:

  • Working Tax Credit Payment
  • I was eligible for a child tax credit and working tax credit, but I didn’t receive the payment because my income was too high.

How do I request payment? When do you receive it?

“If you’re eligible for payment, you don’t have to do anything because HMRC will contact you in text or letter this month with details,” explains James. “However, if your bank details change last year, you will need to notify HMRC to ensure proper payment. This can be done by phone, web chat, or online. “

If you qualify, you must receive payment directly to your bank account by April 23. Payments are tax exempt and do not affect your interests.

James also adds: Spring budgetIt is important to keep up to date with the latest tax and benefits changes. Otherwise, you may miss the payments that you are fully entitled to. “

For a complete list of tax credits, universal credit information, and benefits guides, please visit: money.co.uk, And for advice on a wide range of financial topics pension To Credit score, Check us out Money problem column..

COVID tax credit 2021 has been abolished and replaced with a one-time payment of £ 500

Source link COVID tax credit 2021 has been abolished and replaced with a one-time payment of £ 500

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