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AIBU?

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Original poster

£500 tax credits payment

75 replies

Frozenintime · 12/03/2021 19:10

Will everyone on tax credits receive this? heard a little about it in the news but I don't understand it

OP posts:
WhatWouldPhyllisCraneDo · 12/03/2021 19:14

Looks like it's for everyone on WTC.

And anyone who's eligible for WTC but can't claim it because their income is too high. Not sure how that makes you eligible Hmm

Squeejit · 12/03/2021 19:15

It’s for those who get Working Tax Credit. I don’t think it applies if you only get Child Tax Credit.
At the moment there is a £20 a week uplift to deal with coronavirus but that comes to an end in September.
People who are on UC will carry on getting it till September but because of the way Tax Credits are administered, it will be a one-off payment in April to cover the period till September

FourDecades · 12/03/2021 19:16

I'm confused now. So not everyone who's on TC will get it?

Waxonwaxoff0 · 12/03/2021 19:16

I get WTC and haven't heard anything about this?

FourDecades · 12/03/2021 19:17

Ignore my last post!

Original poster
Frozenintime · 12/03/2021 19:17

I'm not on UC but do get tax credits

OP posts:
CoffeeRunner · 12/03/2021 19:18

I get £28 a week Working Tax Credit. Is there a sliding scale? So a payment of up to £500?

I haven’t heard anything about it either.

CoffeeRunner · 12/03/2021 19:22

Thank you for that @FourDecades.

Original poster
Frozenintime · 12/03/2021 19:23

I don't understand the last part. Confused

£500 tax credits payment
OP posts:
Waxonwaxoff0 · 12/03/2021 19:26

Well that is a welcome surprise!

Original poster
Frozenintime · 12/03/2021 19:29

Will be playing the waiting game for a month to see if it arrives or not

OP posts:
TulisaIsBrill · 12/03/2021 19:30

My interpretation of the last part is that

  • you have to definitely get some payment of Chld Tax Credits you work enough hours as a family unit to qualify* for working tax credits.
  • However, your income is too high to actually get any working tax credit payments

Example- someone with 3 kids, works 24 hours a week, but earns 22k. No more working tax credits for them - but they do get child tax credits.

They'll also get this payment.

Original poster
Frozenintime · 12/03/2021 19:33

2 adults, one child. One adult working full time. Get child tax credits but earn over the threshold. Does that qualify ?

OP posts:
GreenClock · 12/03/2021 19:35

Doesn’t affect me but it’s nice to see some good news amongst the gloom currently. This will be a decent boost for families.

Fivetoomany · 12/03/2021 19:40

I'm also confused by this. I have been doing a lot of temporary work for different companies since redundancy in aug. As a result of this I have been having to change my jobs on my claim a few times, sometimes I'd be unemployed for a month so that would change the whole payment.
I received a £20 working tax credit in Feb, £8.85 working tax 8th March alongside our usual child tax credits. So to me we should be eligible, however there is no sign of it on the HMRC app and I didn't receive any extra during the £20 uplift.
I wish they had sent a message to those eligible explaining it all.

Original poster
Frozenintime · 12/03/2021 19:45

@Fivetoomany I've also got the HMRC app and nothing on there. However, my child tax credits are showing as reducing by £20 a week from April.

OP posts:
KingstonTownThePlaceILongToBe · 12/03/2021 19:46

I heard about this on the Martin Lewis show and it was a pleasant surprise.
Does anyone know if it will affect housing benefit payments?
Whenever there's a shift in my tax credits they notify housing benefit (rightly) and the adjust my benefit (I think there's a certain amount they disregard) and am wondering if they would see it as I had 500 extra that month or they take into account that its technically the 20 a week run on for 6 months?

Alwaysandforeverhere · 12/03/2021 19:52

I reckon those of just tax credits will be the forgotten squeezed middles again. Same as too much for free dinners but technically only by maybe a £1 a month or so. Those who don’t get free dental by just a few £.

The ones forgotten about.

Good for those who get it but if not everyone on tax credits does it will just be a kick in the teeth for those squeezed again.

TheGumption · 12/03/2021 20:38

@Alwaysandforeverhere

I reckon those of just tax credits will be the forgotten squeezed middles again. Same as too much for free dinners but technically only by maybe a £1 a month or so. Those who don’t get free dental by just a few £.

The ones forgotten about.

Good for those who get it but if not everyone on tax credits does it will just be a kick in the teeth for those squeezed again.

Yup I can see we will fall into this category again. So sick of it.
itsgettingwierd · 12/03/2021 20:52

I agree that last part is confusing.

I wonder if it means those who would have got it with the £20 uplift due to the changed amount but now won't because it's been put back again? So basically it's those who got WTC on 2/3 due to change but won't from April?

Lougle · 12/03/2021 22:20

If you work over 30 hours if you're single, 24 hours if in a couple (at least one over 16 hours), or 16 hours and a lone parent, and get tax credits, you are eligible for working tax credits.

Some people are technically eligible, but their earnings mean that all of their working tax credits are deducted from their tax credit award.

They are just saying that all of those people will get the £500 payment. As long as you meet the criteria for WTC, you get the payment, even though you may not actually receive the WTC.

WTC for someone working 30hrs+, without disability, is £2865. The income disregard is £6530. The benefit withdrawal rate is 41%. That means that anyone who earns over about £13,500 who doesn't have a disability won't receive any Working Tax Credit, even though they are eligible. They will get the £500.

Lougle · 12/03/2021 22:24

@Alwaysandforeverhere

I reckon those of just tax credits will be the forgotten squeezed middles again. Same as too much for free dinners but technically only by maybe a £1 a month or so. Those who don’t get free dental by just a few £.

The ones forgotten about.

Good for those who get it but if not everyone on tax credits does it will just be a kick in the teeth for those squeezed again.

Free school meals is dependent on you not qualifying for WTC.
SansaClegane · 12/03/2021 22:33

I've not heard about that? It would be brilliant if I qualified! I receive WTC and CTC (single parent in a low paid occupation).
Rather frustrating that there's nowhere to check. So you just wait and might get it?

May17th · 12/03/2021 22:46

@FourDecades

I'm confused now. So not everyone who's on TC will get it?
I think everyone who got the £80 increase will get the £500 if your on working tax.