HMRC to Automatically Pay Over One Million People Cost of Living Payment

Key Highlights :

1. The cost of living payment will be paid between May 2 and 9, 2023.

2. People in receipt of Tax Credits from HMRC are set to receive a cost of living payment worth £301 from Tuesday, May 2.

3. 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.

4. 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.

5. The payment is tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.

     HM Revenue and Customs (HMRC) are set to automatically pay over one million people in receipt of Tax Credits a cost of living payment worth £301 from Tuesday, May 2, 2023. This lump sum payment is part of a £900 means-tested support package for those on Working Tax Credits or Child Tax Credits and will be paid until May 9, 2023.

     The payment will be made into the same bank account as the Child Tax Credit and will not need to be applied for, as it will be paid automatically. It is also tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.

     For those on Tax Credits, the payment will appear in bank statements or online accounts as ‘HMRC COLS’. HMRC have also sent out letters to all Tax Credits claimants advising them they may be eligible for the £301 payment.

     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.

     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 to contact HMRC. This is to allow time for their bank, building society or credit union to process the payment.

     HMRC also ask customers to ensure that they have 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.

     The payment of the cost of living allowance is part of the government’s commitment to support those on lower incomes and provide financial security during this difficult time.

     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.

     For more information on the £301 cost of living payment, eligibility criteria and how to update your mobile phone number, visit the HMRC website.

Continue Reading at Source : dailyrecord