HM Revenue and Customs (HMRC) estimates that more than one million people will have received the £301 cost of living lump sum by the time the payment window closes on Tuesday, May 9. However, it also issued guidance to anyone who thinks they qualify for the payment, but it does not arrive.
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 16 before contacting HMRC. This is to allow time for their bank, building society or credit union to process the payment, which will appear in statements or online accounts as ‘HMRC COLS’.
The first part of the £900 means-tested support package is for those on Working Tax Credits or Child Tax Credits-only, who do not receive any other qualifying benefit from the Department for Work and Pensions (DWP). If they do, that payment window remains open until May 17 and money will continue to land in bank accounts until that date.
To receive the first 2023-24 payment from HMRC, people must have received a payment of Tax Credits on 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.
The payment is tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
HMRC also recently sent out letters to all Tax Credits claimants advising them they may be eligible for the £301 payment. It’s important to be aware that the letters are not confirmation of payment, but simply to inform that someone may qualify.
HMRC said: “We also ask our Tax Credit customers to ensure that we have an up-to-date mobile phone number for them, so we can text them to confirm the dates for the autumn 2023 and spring 2024 payments once published.
“We ask them to check that their number is correct by logging into their Personal Tax Account - by searching for ‘HMRC services’ on GOV.UK.”
To keep up to date with the latest cost of living news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
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