Tax credit claimants have been told to expect a letter from HMRC about the Cost of Living Payments for 2023-24. Letters, sent to all claimants with information about the Cost of Living Payments for 2023-24, should arrive between April 19 - 24, 2023.
The letter explains that tax credit customers may be eligible for up to three Cost of Living Payments in 2023-24. Eligible claimants will receive £301 paid between May 2 and May 9, 2023, £300 in autumn 2023 and a final £299 in spring 2024.
If claimants are eligible and receive tax credits, and no other qualifying benefits, they will receive their payment from HMRC, to help with everyday costs, reports Yorkshire Live. If they are eligible, claimants do not need to do anything as the payment will be made automatically into the bank account where they receive their tax credits. They do not need to contact HMRC or apply for the payment.
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Receiving this letter or a previous Cost of Living Payment, doesn’t guarantee a customer will be eligible for this or future payments. They must meet the separate eligibility criteria for each payment, as published on GOV.UK.
The HMRC payment will appear on bank statements as ‘HMRC COLS’, referencing Cost of Living Support. If customers have not received the Cost of Living Payment from HMRC, but believe they are eligible, they should wait until after May 16 to contact HMRC. This is to allow time for their bank, building society or credit union to process the payment.
In the letter HMRC also explain that if customers receive tax credits and other qualifying benefits, such as Income Support, they will receive the first payment from the Department for Work and Pensions (DWP) between April 25 and May 17, 2023. The letters also reminds customers to be aware of scams.
This comes after the UK Government announced the cost of living support for 2023-24 including Cost of Living Payments for eligible households receiving certain benefits or tax credits in Autumn 2020. To receive the first 2023-24 payment from HMRC, HMRC must have made a payment of tax credits to the customer in respect of any day between January 26 and February 25, 2023.
For joint claimants, where one claimant receives Working Tax Credit and the other claimant receives Child Tax Credit, payments will be made into the same bank account as the Child Tax Credit.
HMRC also ask tax credit customers to ensure that they have provided an up-to-date mobile phone number for them, so they can text them to confirm the dates for the autumn 2023 and spring 2024 payments once published. HMRC ask claimants to check that their number is correct by logging into their Personal Tax Account – by searching for ‘HMRC services’ on GOV.UK.
HMRC will publish details of who is eligible for the second (autumn 2023) and third (spring 2024) payments on GOV.UK closer to the payment dates. The latest payment schedule information is available here.
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