People claiming Tax Credits will receive a letter this week from HM Revenue and Customs (HMRC) advising them on whether they are eligible for the second cost of living payment which is due to start landing in bank accounts from next Wednesday.
More than one million people claiming Working Tax Credits or Child Tax Credits are set to receive the payment of £324 directly from HMRC between November 23 and 30. The letter also explains that if they receive Tax Credits and other qualifying benefits, such as Income Support, they will receive the £324 second payment from the Department for Work and Pensions (DWP).
Letters started going out on November 14 and should arrive by the 18th at the latest. However, HMRC warns that receiving a letter does not guarantee that someone will qualify for the payment, but provides information to help them understand eligibility.
HMRC will make the second cost of living payment automatically into the same bank account where claimants receive their Tax Credits. Those who are eligible do not need to do anything to receive this payment.
If the payment does not arrive by December 7 and you believe that you should have received the money, you should contact HMRC to report it missing.
HMRC is asking everyone to wait until that date to allow time for their bank, building society or credit union to process the payment.
The payment from HMRC will appear on bank statements as ‘HMRC COLS’ and the department is reminding everyone that they do not need to apply for it. If someone contacts you by phone, text or email telling you otherwise, it is most likely a scam.
Eligibility for £324 Tax Credits-only cost of living payment
Remember, this will be paid between November 23 and 30.
You will be eligible for the second cost of living payment of £324 if you received, or later receive, for any day in the period August 26, 2022 to September 25, 2022 either:
- a payment of Tax Credits for the tax year 2022 to 2023
- an annual award of at least £26 of Tax Credits for the tax year 2022 to 2023
Key points to know about the payment
If you get both Child Tax Credit and Working Tax Credit, you will receive a cost of living payment for Child Tax Credit only.
If you get Tax Credits from HMRC and a low income benefit from the DWP, you will get a cost of living payment from DWP only between November 8 and 23.
If you had a joint claim between August 26 and September 25, 2022, a single payment of £324 will be sent using the same payment method used between these dates, if you’re eligible.
Your payment might come later, for example if you are awarded a qualifying benefit at a later date or you change the account your benefit or tax credits are paid into.
Full details of the cost of living payments can be found on the GOV.UK website here.
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