Britons who are in receipt of Tax Credits from HM Revenue and Customs (HMRC) should expect to receive their £324 payment from Wednesday next week. According to the official announcements, the cash is set to land in bank accounts between Wednesday, November 23 and Wednesday, November 30, 2022. The payment window opens on the last day claimants of Department for Work and Pensions (DWP) benefits get their cost of living payment.
These people will be receiving their payments between November 8 to November 23.
According to HMRC, the reason why Tax Credit claimants get their payments later is to prevent the risk of overlap in payments and possible duplication.
The Government department said this could result in an overpayment that would need to be repaid.
The reference for the payment, which will be seen on the bank statement of an individual, will be the National Insurance number of the person who receives the benefit.
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The National Insurance number will be then followed by the statement: “HMRC COLS”.
Both the DWP and HMRC have reiterated that people who are eligible will receive the payment automatically and there is no need to apply.
This means if someone receives an email, text or phone call telling them that they need to claim the one-off payment, it is a scam.
Angela MacDonald, deputy chief executive and second permanent secretary, at HMRC said: “This second Cost of Living Payment will provide further financial support to eligible tax credit-only claimants across the UK.
“The £324 will be paid automatically into bank accounts, so people don’t need to do anything to receive this extra help.”
To be eligible for the second cost of living payment, a person must have received or later receive, a payment from HMRC for any day in the period between August 26, 2022, to September 25, 2022.
This could be a payment for Tax Credits, either Child Tax Credits or Working Tax Credits, for the 2022-23 tax year.
It could also be the annual award of at least £26 of Tax Credits for the 2022-23 tax year.
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HMRC has confirmed that if someone receives both Child Tax Credit and Working Tax Credit, they will receive one cost of living payment and it will be for their Child Tax Credit claim.
If someone 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.
HMRC has warned that some people may see their payment a little later than others.
This can either be because someone was awarded a qualifying benefit at a later date or someone changed the account their benefit or tax credits are paid into.
If someone does not receive their cost of living payment, then they should contact the Government department where their qualifying benefit is paid.
As announced in the Autumn Statement last Thursday, more cost of living payments will be coming to those on low incomes.
Chancellor Jeremy Hunt said in the autumn statement that there will be additional payments for the “most vulnerable”.
This includes a £900 payment for those on benefits, £300 for pensioners and £150 for those on a disability benefit.
More details on these extra support payments will be announced over the coming months by the DWP.