Tax credits: Government confirms that payments will be protected from coronavirus issues
Tax credits can still be claimed if the person involved gets the severe disability premium (or is entitled to it), or they were entitled to the severe disability premium over the previous month and are still eligible for it when applying.
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To make a new claim for tax credits, the claimant will need to call HMRC.
In this call they’ll be asked for some information and will be given an estimate of how much they’ll get (if anything).
There are a number of pieces of information which could be requested which includes a national insurance number, income information, details for any other benefits received and information on working hours.
Tax credits are payments from the government and they can come in two forms: Child Tax Credit or Working Tax Credit.
The credits can help boost a household’s income and they can be worth thousands of pounds a year.
They can be paid on a weekly or monthly basis and they tend to follow rules that are similar to Universal Credit obligations.
Claimants of tax credits must contact the tax credit office within 30 days if they have a change in circumstances, which can include losing/getting a job or having a baby.
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The rule on job reporting could make claimants worry at the moment as coronavirus has impacted employment across the board.
Several workers in the UK have had their working arrangements altered, especially people who work in manual or service jobs which can’t be done from home.
Fortunately, the government has recently announced that tax credit customers will continue receiving payments even if they’re working fewer hours due to coronavirus.
Yesterday (May 4), the government confirmed that “those working reduced hours due to coronavirus or those being furloughed by their employer will not have their tax credits payments affected if they are still employed or self-employed.”
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They went on to detail that there is no need for claimants to take any action in this area: “These customers do not need to contact HMRC about this change.
“We will treat customers as working their normal hours until the Job Retention Scheme and Self-Employment Income Support Scheme close, even if they are not using either scheme.
“We’ll use the information we hold about the number of hours they normally work.”
Despite there not being a need for reporting changes to working hours, the state revealed that claimants must still tell them if they (or their partner) lose their job, are made redundant or cease trading altogether.
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Tax credit payments should still come through as normal during this period but, as is the case for many state benefits, bank holidays could affect its timing.
There are two bank holidays in May and each one will have an effect on payment dates.
If a tax credit payment is meant to be due on May 8, the money will actually come through on May 7.
There is an even bigger gap involved if a payment is scheduled for May 25.
If this is the case, the income should arrive on May 22.
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