£500 payment for working households on tax credits – have you received yours?

What is the payment and why is it being made?

The Government announced in March that they would make a one-off £500 payment to certain working households in receipt of tax credits – broadly equivalent to £20 a week for 6 months. This is instead of the temporary £20 a week increase to the basic element of working tax credit that was in place to 5 April 2021.

Who qualifies for it?

Although the payment is designed to give extra support for the period 6 April 2021 to 30 September 2021, qualification for it is based on the tax credit award in place on 2 March 2021.

Broadly, to qualify, on 2 March 2021 you must have:

• had working tax credit element(s) included in your award calculation and
• been awarded some working tax credit or child tax credit.

I think I qualify. Do I have to claim the payment?

No claim is required for this one-off payment. HMRC will make the payments automatically.

What if I haven’t received it?

If HMRC have told you to expect the payment or you think you qualify but you have not received the payment, you should wait until the end of April – once all payments have been made – before contacting HMRC.

Where can I find out more about the payment?

We have published some guidance for claimants which explains more about:

• who qualifies for the payment
• when it will be paid
• how it will be paid
• what to do if you have not received the payment
• how changes of circumstances and income affect the payment, and
• the circumstances in which HMRC can ask for the payment back.

We have also published some more detailed guidance for advisers on our specialist website.