£500 one off payment tax credits.

[Hey2492]

Apologies for not posting in the right area but thought it may reach a lot of people!

Dp got a text today to say that one off payments of £500 are being paid by 23rd April. I didn’t think we would be eligible. Is it just a generic text sent to everyone or just those entitled? I thought it was only for those on working tax credits, we only get child tax credits I believe.

To clarify. Dp works and has worked all the way through the pandemic and earns around £30,000 a year. I am currently a stay at home mum to out two children who both have additional needs. The bulk of our child tax credits are based on my children receiving disability living allowance rather than dp’s earnings. We do get some based on his earnings though.

I am really clueless 😂 I thought tax credits were eventually being changed over to universal credit too. We still get ‘tax credits’ and not universal credit.

Advice for a confused mum.

We own our own home and don’t get any other benefits apart from the DLA my children get and the tax credits (obviously child benefit too). £500 would be very appreciated!

Tia.

I had the text too this morning after calling tax credits yesterday to let them know I had left my job/had been on maternity leave 39 weeks/started a new job. The app shows my new payments now but when I looked into the text and saw the same as posted above it does say it won't show up on the app as a future payment so it seems the only way we will know is if it lands in my account. Not gonna deny it would be lovely but I wasn't expecting it as until I got the text I though it was you had to be in receipt of working tax credits as that's what Martin Lewis had said when hubby was watching him the other week lol

I got the text.

I get a small amount of WTC but mainly CTC due to being LP and son getting DLA.

So in know I'm entitled - which doesn't help you know if everyone got it or just those entitled. Sorry!

@GravityFalls

I wouldn’t get despondent yet, it can take them a while to get through everyone - someone got a text yesterday, mine wasn’t until the afternoon, so I don’t think they all go out at once.

I just got it

My friend received a text an hour or so ago.

Does anyone know when the migration to UC is happening?

I just got the text.

We get CTC but not WTC as our income is too high.

Does this mean we will get £500??

I'm on UC but DP works. (All income declared before anyone starts) would this apply to us or does it have to be those who still receive it as a legacy benefit?

When you apply for Tax Credits you get assessed for both WTC and CTC at the same time and a combined award is calculated - for example, £8000 - they then take your income into account and reduce that total accordingly. It gets reduced off the Working Tax Credit first and only once that reaches zero do they start reducing it off the Child Tax Credit so there will be quite a few people who qualify for WTC but don't actually get paid it because of their income level.

Text messages (and letters when it's a mailshot) usually get sent out in batches of few hundred thousand at a time so will be going out at random times over the next week or two.

@FoxyTheFox

When you apply for Tax Credits you get assessed for both WTC and CTC at the same time and a combined award is calculated - for example, £8000 - they then take your income into account and reduce that total accordingly. It gets reduced off the Working Tax Credit first and only once that reaches zero do they start reducing it off the Child Tax Credit so there will be quite a few people who qualify for WTC but don't actually get paid it because of their income level.

Informative, thank you! I am clueless and it comes to things like this!

My understanding is anyone who receives income related CTC or WTC is entitled to the £500. HOWEVER if you get CTC disability element ONLY you are not entitled to the £500.

Thank you everyone 😊

I used to work for HMRC and a part of my job was to manually calculate TC awards for audit.

@ForTheLoveOfSleep

My understanding is anyone who receives income related CTC or WTC is entitled to the £500. HOWEVER if you get CTC disability element ONLY you are not entitled to the £500.

Are claim isn’t purely the disability element. We do receive based on dp’s earnings. Not sure on the exact number!

Our *

@Hey2492 So you should receive it then

I'm in a similar boat to you op but with a bit less wages and only one child on DLA. I THINK we'll get it but I'm ignoring it just in case 😂. We have an assessment for WTC and CTC but don't get WTC cos of the salary deductions so just CTC.

RE move to UC, if you're receiving the enhanced CTC due to disability you won't be moved over with any hurry. Same for multiples where you qualify for TC for the third child.

And finally do you get Carers Allowance?

Bizarre that people earning 30k a year would get this.

I receive CTC and WTC and looking at the info, there's no reason why I wouldn't qualify. No text here.

Tbh, I don't seem to get communication from HMRC except to tell them I owe them money haha!

I am self-employed and when everyone received emails to say about applying for the SEISS grant, I didn't hear a peep even though I was eligible. I applied anyway for the first one and got paid but unlike everyone else, I never had an email about it.

I've not had any texts or emails about this £500 payment either so I'm just hoping that I'll get paid it anyway....I've got two SEN kids at home due to lack of suitable schools so I could REALLY do with the money right now! They have up to date phone numbers and email for me so no reason for lack of contact. Fingers crossed.....

You can't claim CTC disability element in isolation, you'd also qualify for the child element and the family element of CTC as standard. When tapering, the family element (£545) is the very last element to be reduced and they only reduce that one once all of the other elements have been reduced down to zero.

@Principessa2070

I'm on UC but DP works. (All income declared before anyone starts) would this apply to us or does it have to be those who still receive it as a legacy benefit?

You will continue to get the UC uplift until September when it will stop and your Uc award will reduce by about £80 a month.

Bizarre that people earning 30k a year would get this.

Often it's due to them having childcare costs on their claim which increases the maximum award and gives a larger 'pot' to do the income taper from.

So you could have someone on £30k a year with no childcare costs who qualifies in theory but comes up with a zero award once their income in taken into account but then someone else on £30k who has childcare costs or who has a disabled child or is themselves disabled (or all three) will come out with payments because the addition of the childcare element/disabled child element/disability element of WTC means their award doesn't taper to zero once their income is applied to it.

Let me tell you that 30k with 2 kids, childcare costs and a mortgage to pay is nothing!!

You obviously get taxed on 30k so your take home isn’t 2.5k a month.

@Babyroobs

Bizarre that people earning 30k a year would get this.

30 grand as a single income house doesn’t go far when you own your home and don’t get any other means tested benefits other than tax credits. Dc receive DLA. We receive a small amount of tax credits based on dp’s earnings the rest the disability element.

Dp has worked all the way through this. We have had zero help with anything. Why shouldn’t hard working people like my partner get it?!

We’ve just had to spend our £1000 to get our heating fixed which has crippled us and our dryer has gone wrong. We never expected it. So if we do get it it’ll be very appreciated.

30 grand a year isn’t a lot. We don’t have a lot of spare money at all. Overdrawn every month. Don’t spend above our means. Haven’t had a holiday in about 8 years. We have no luxuries!

@Babyroobs

Bizarre that people earning 30k a year would get this.

Bizarre they'd get the boost or the TC to begin with?