HMRC issues ‘C19’ support with £500 tax credit payment – are you eligible?

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HMRC, formally known as HM Revenue and Customs, helps millions of people deal with their tax affairs each year. However, the Revenue also oversees particular payments which can help Britons in a myriad of circumstances. One such payment is Working Tax Credit, made available to working families right across the country.

People need to work a specific number of hours a week to claim Working Tax Credit, but the sum can really help those on a low income.

In one week’s time, HMRC has confirmed many of those in receipt of the payment are set to get a £500 one-off boost, in a support measure being referred to as ‘C19’. 

This payment is being put into place to provide additional support after the temporary increase due to the pandemic ended at the start of April.

A similar increase is planned for Universal Credit, however, this will be administered when a person is usually due to receive their sum.

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“Because of the way that system works operationally, we will need to do so with a one-off payment of £500.

“Over the course of this year, as the economy begins to recover, we are shifting our focus towards getting people into decent, well-paid jobs.”

Working Tax Credit claimants, however, should check their eligibility to receive the £500 one-off payment from HMRC.

People may be eligible if on March 2, 2021, they were in receipt of:

  • Working Tax Credit
  • Child Tax Credit, and were eligible for Working Tax Credit but did not receive a payment due to income being too high

Fortunately, people will not need to take any action when it comes to receiving this payment.

Eligible individuals can expect to receive a text message or letter update from HMRC this month.

Payment direct to a bank account by April 23, 2021 should occur, but individuals will not see the payment on the online tax credit service.

The payment is one-off and non-taxable, but it will also not impact any other benefits a person receives.

Individuals will not need to declare this sum as income for Self Assessment tax returns.

This is also the case for tax credit claims and renewals. 

People can no longer make a new claim for Working Tax Credit – and individuals will need to apply for Universal Credit instead.

The Government explains: “You can only make a claim for Working Tax Credit if you already get Child Tax Credit.”

Do you have a money dilemma which you’d like a financial expert’s opinion on? If you would like to ask one of our finance experts a question, please email your query to [email protected]. Unfortunately we cannot respond to every email.



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