One million households claiming Tax Credits from HMRC will start to receive their first £301 cost of living payment from today.
This is the same cost of living cash payment that millions of others have been receiving since Tuesday last week.
However, this will be rolled out by HMRC, instead of the Department for Work and Pensions (DWP).
According to DWP, Tax Credit claimants get their £301 payment after those on DWP benefits to avoid double payments being made.
Angela MacDonald, HMRC’s deputy chief executive and second permanent secretary, said: “The £301 cost-of-living payment will deliver vital financial help to eligible tax credit customers across the UK. Further support will be paid in autumn 2023 and spring 2024 to those entitled to payment.
“HMRC will pay eligible tax credit customers automatically and with no action required from the customer, to make this as simple and helpful as it can possibly be."
Who is eligible for this cost of living payment?
This cost of living payment is to be made to people claiming Child Tax Credits or Working Tax Credits from HMRC.
To be eligible for the £301 cash, you must have received a payment of Tax Credits in the qualifying period between January 26, 2023, and February 25, 2023 - or must have later to be found eligible for a payment.
The £301 payment is the first of three cost of living payments totalling £900 which will be paid over the next 12 months.
The next two payments, worth £299 and £300, will be made in the Autumn and in the Spring of next year.
Dates for the second and third payments have not yet been announced.
When will the cost of living payment be made?
People claiming Working Tax Credits or Child Tax Credits, will start to receive their first £301 payment from Tuesday May 2.
These payments will continue to be made to claimants until May 9, 2023.
Not everyone will get the money on the first day.
Like the DWP's cost of living payment, there is no structure on how HMRC will distribute the money - such as alphabetically or by address.
This means you will have to be patient and wait until it arrives.
Some banks, such as Monzo will notify you when a payment is about to come into your account - however others don't.
How will I know when I've been paid?
Just like the DWP's cost of living payment, you can look out for a reference code on your online banking to check when you have been paid.
For the DWP's payment, this code was "DWP COL" along with the claimant's National Insurance number.
For HMRC, the payment will be made with the reference code "HMRC COLS".
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.
What should I do if I've not been paid?
HMRC said people might find that their payment is delayed if they have recently closed the bank account into which their Tax Credits are usually paid.
Anyone who believes they are eligible for the £301, but does not receive the money during the payment window is advised to wait until after May 17 to contact HMRC.
This is to allow time for their bank, building society or credit union to process the payment.
If you claim both Tax Credits and a DWP benefit, then you will have your cost of living payment paid by the DWP.
Because of this, you may have to wait until May 17 to receive your cash.
It also means you will have to wait until after this date to contact the DWP or HMRC about your payment if you haven't received it.
