When Britons on Tax Credits can expect second cost of living payment
To help with spiralling living costs, the Government announced a cost of living payment scheme as part of an estimated £15.3billion support package. The scheme has been offered to those claiming certain benefits or the state pension, and payment amounts – as well as months of distribution – have varied.
The main cost of living payment, worth £650, was to be paid in two lump sums of £326 and £324, for eligible households receiving certain benefits.
Eligible recipients have been receiving instalments since the support scheme launched in July, but the payment date has depended on the type of benefit a person is in receipt of.
And now, the HMRC has now announced when eligible Tax Credit-only claimants will receive their second half, worth £324.
Every Tax Credit customer will receive a letter between November 14 and November 18, 2022, explaining the second cost of living payment; what makes an individual eligible, when it could arrive, and who it will be distributed by.
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To be eligible for the second cost of living payment as a Tax Credit recipient, an individual must have received one of the following, for any day in the period between August 26, 2022, to September 25, 2022:
- 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
HMRC will make the second cost of living payment automatically into the same bank account where claimants receive their Tax Credits. It will appear on the bank statement as “HMRC COLS”.
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.
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From fraudulent emails claiming to be from Ofgem asking for bank details to receive the £400 energy rebate, to texts claiming to be from the DWP asking people to apply for cost of living payments, Britons are being hit with an influx in what some might seem as more realistic scams as the months go on.
HMRC guidance reiterated: “You don’t need to apply for this payment – if you’re eligible, you will be paid automatically.
“If someone contacts you about Cost of Living payments saying they’re from HMRC, it might be a scam.
“We’ll never ask for your bank details by SMS or email. Don’t let yourself be rushed.”
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