£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.

When you apply for Tax Credits they assess you for both WTC and CTC from the one application form.

For example:

(The CTC and WTC amounts are totally made up figures for illustrative purposes as I can't be bothered to manually calculate an award when I haven't even had a coffee yet)

Married couple, working over 30hrs, two children, childcare costs of £100 a week, one of the children is disabled.

TCO calculate that they are entitled to £8000 in total, made up of £2000 WTC and £6000 CTC.

The income is then taken into account - £30k a year. The combined award is reduced (tapered) starting with the WTC. Once the WTC is reduced to zero then they start reducing the CTC, there is a set order in which the elements will be reduced and they only move onto reducing the next element once the previous one is exhausted with the family element (£545 a year) being the final element that can be reduced - a lot of higher income (in terms of tax credits) families are on what's called a "family element only claim" where all they have left after tapering the the £545 a year, I've even seen claims with less than that remaining although the absolute minimum award is £26 a year (any lower than that and it can't be paid).

After the £30k is applied the £8000 is now reduced to £4500 - WTC was reduced by £2000 meaning there was £0 left to be paid and the CTC was reduced by £1500 leaving £4500 to be paid lying either weekly or four-weekly over the rest of the year.

In theory this family qualifies for WTC and has been awarded £2000 WTC, its just the amount left to be paid to them is zero after the income taper.

I also got the message today, hubby works 40 hours a week earning £24000 a year his worked through the whole pandemic while I have home schooled 3 disabled children (works in social care). It would be nice to have a bonus esp as so many were fourghlough and had lots of family time. While I was on my own all week home schooling, cooking, cleaning with 3 children with multiple disabilities 😂🤦🏼‍♀️. It's so unclear the text! Doesn't say you will but why send one. To miss out again I will be a bit gutted 😂. Esp spent a small fortune on the cars this month.

People unable to work who are on carers and disability benefits aren't getting it surely because their income hasn't been affected by the pandemic eg working less or job loss? Obviously there are lots on UC that haven't either but it was probably easier to do a blanket change. Both my son and I are disabled before I get shouted at, I get how taxing and expensive it is, but it would make sense that that's the entire point of the bonus? There will always be some who filter through who don't need it unfortunately.

I don’t understand the confusion it’s very clear you just need to be entitled to wtc ie work enough hours. If you receive ctc but earn to much you still get the £500.
The may is because you must work the required 16/24 hours.

@MyDcAreMarvel

I don’t understand the confusion it’s very clear you just need to be entitled to wtc ie work enough hours. If you receive ctc but earn to much you still get the £500. The may is because you must work the required 16/24 hours.

So does this mean anyone who works, over a certain amount of hours and get Ctc will get it? We don't get wtc, assume we earn to much, will it mean we will get this? Like we never get any of the other bits you get with wtc, like free lunch's winter warmer grants etc. That's why I can't see us getting this. But honesty I have spent £5000 keeping the cars on the road this year and still the air con has died in a car so this would be amazing 🤦🏼‍♀️

It isn't just the money although £67 a week is a start but also discounts on days out etc because you're a carer
@SleepingStandingUp it’s the dla award you take for carers discount not the carers award because the majority of carers earn to much to qualify.

@Skymum82

So does this mean anyone who works, over a certain amount of hours and get Ctc will get it?
We don't get wtc, assume we earn to much, will it mean we will get this?

Yes because you do qualify for wtc, it’s just your wtc payment is refused to zero due to earnings.

• reduced

@Skymum82 you were also eligible for the £20 a week, however your income stopped that money ever being paid to you.
There would have been people who earned too much for wtc before the pandemic and then randomly received say £15 of the £20 Covid payment once their earnings had cancelled out the regular wtc payment plus £5 of the £20.
The £500 payment as it’s a one off is not affected by earnings in the same way.

Aww fab thanks. :)

@Hey2492 £2000/month might not be much to you but if you claim DLA for more than one child and can potentially claim carers allowance of £67/week, it means you receive at least middle rate DLA which is £60/week ( if two children that’s 480 DLA a month and 270 carers a month ) higher DLA is even more so you take home more than just the £2000

@KilljoysDutch

OP I wasn't having a dig at you. I'm just annoyed at the situation - those on UC will get an extra £80 a month but it won't be going to anyone on ESA which is those of us who are disabled and also struggling on the same benefits but because we haven't switched over we don't count.

Nice way to shaft the disabled once again.

Does this get paid into the account where WTC usually gets paid weekly?

Yes @Debz848

Thanks for reply! The weekly WTC gets paid into my account so didn't know if it would go to my husbands personal account.
At least this way the children can get new clothes/shoes etc!

Our combined income is £33k. We would be eligible for WTC but obviously our income is above the amount so takes our entitlement to zero. We get CTC.

Does anyone think we may get it? We could really do with it at the moment with unexpected costs. I asked HMRC online but they can’t tell you either way apparently.

If you get the text, you’ll get the money in April.
Universal credits payments are going up and rather than out tax credits payments up for the year, people on tax credits are getting the increase as a £500 lump sum one off

I just got a second tax credit payment this week, what's that about? I've put it away in case it's a mistake and they want it back. It's less then my tax credits usually are.

Hi with regards to the one off £500 payment.My friend doesnt get working tax credits but has had a text message.Its vague saying you may be eligible.I get both and haven't had a message can anyone advise.She went on the tax credits calculator and it states they dont get working tax.They earn about 24k from wages and takes it up to just over 30k with child benefits and child tax credits for 3 children.

@ameliajanes

I just got a second tax credit payment this week, what's that about? I've put it away in case it's a mistake and they want it back. It's less then my tax credits usually are.

It's likely to be an adjustment for the new tax year.

@Flumpy110313 your friend probably does get WTC but it’s cancelled out by earnings so in reality it’s a nil award and they only actually get CTC. That’s the case for lots of people and apparently those people are still eligible.

Hi thankyou fingers crossed.
I get both and I haven't had a text message do you think I maybe entitled aswell.
Thankyou 😊

Husband works 40 hours and earn 24, 000, I get carers allowance and have 3 disabled children.
We get childs tax credit but not wtc.
I haven't received a text or letter saying we are getting this extra £500.
Just don't understand (not saying you don't deserve it) that people with 30,000 are entitled to it but we earn less and don't.

@Alone97 literally same situation 3 disabled children hubby earns the same works the same amount of hours. We got a text and on our claim we would be able to get it but earn to much. Have they ever text you? Do they have your number?

Nope no text and no letter, I'm pretty sure they have my number.