A million households are set to obtain a £301 value of residing fee between April and Might, HMRC has confirmed.
The fee can be made to those that declare tax credit from HMRC and no different Division for Work and Pensions (DWP) advantages.
It’s the first of three value of residing funds Tax Credit score claimants will obtain, totalling as much as £900 total for these eligible in 2023-24.
The primary installment can be paid mechanically into most financial institution accounts between Might 2 and Might 9.
For claimants of any means-tested DWP advantages, the primary fee can be paid a bit earlier between April 25 and Might 17.
In the meantime, claimants of Baby Tax Credit score or Working Tax Credit score should be eligible for funds, or later discovered eligible, throughout the “qualifying week” – between January 26 to February 25 2023, and the fee will present as “HMRC COLS” in your financial institution accounts.
If you’re already eligible, you do not want to use for the funds.
Two extra cost-of-living funds of £299 and £300 are due within the spring of 2024. The precise dates of the funds and the qualifying interval haven’t but been introduced.
All the price of residing funds can be tax-free, don’t depend in direction of the profit cap, and won’t have any affect on current profit awards.
The funds are a part of a package deal of wider authorities assist introduced to deal with the cost-of-living in 2023-24, together with an extra £300 cost-of-living fee for eligible households in autumn 2023, with a fee of £299 in spring 2024.
Angela MacDonald, HMRC’s deputy chief government and second everlasting secretary, mentioned: “The £301 value of residing Cost will ship very important monetary assist to eligible tax credit score clients throughout the UK. Additional assist can be paid in autumn 2023 and spring 2024 to these entitled to fee.
“HMRC can pay eligible tax credit score clients mechanically and with no motion required from the client, to make this as easy and useful as it will possibly presumably be.”
