For those claiming Tax Credits, the Government has confirmed that anyone working reduced hours due to coronavirus or those being furloughed by their employer will not have their tax credits payment affected if they are still employed or self-employed.
Those customers who are affected do not need to contact HMRC about changes in working hours until the Job Retention Scheme and Self-Employment Income Support Scheme close, even if neither scheme is being used.
HMRC will use the information they hold about the number of hours normally worked as the basis for payment.
Other changes will need to be reported to HMRC in the usual way, such as other changes in income and childcare, and any redundancies or business that have ceased trading.
In the budget in March 2021, it was announced current tax credits claimants would receive a one off payment of £500 intended to cover the six month period from April 2021 onwards. This payment will be made as a one off lump sum paid by 23 April 2021 to people who are currently in receipt of working tax credits or child tax credits.
Claimants do not need to apply for this, they will be contacted by the Tax Credits office by text or by letter if they are eligible and the payment will be made automatically.
