Released 18 March 2021
HMRC have updated their guidance on the new one-off £500 payment for working households receiving tax credits.
Individuals may receive a one-off, tax-free payment of £500 if, on 2 March 2021, they were getting either:
•working tax credit; or
•child tax credit and were eligible for working tax credit but did not get a payment because their income is too high to get working tax credit payments.
The payment does not need to be claimed and will be paid into eligible recipients’ bank accounts by 23 April 2021.
The guidance has been updated to clarify that the payment is non-taxable and will not affect benefits. It does not need to be declared as income for Income Tax Self Assessment or for tax credit claims and renewals. Any changes in bank details must be notified to HMRC by 8 April 2021.
View the updated guidance.