Tax credits recipients to receive Cost of Living Payment

News / Sun 18th Feb 2024 at 11:19am

AROUND 700,000 families, who receive tax credits and no other qualifying benefits, will receive their £299 Cost of Living Payment from today, 16 February 2024, to help with everyday costs.

HM Revenue and Customs (HMRC) is making the payments to eligible tax credits customers across the UK between 16 and 22 February 2024.

More than 7 million eligible UK households have already received the £299 payment directly from the Department for Work and Pensions (DWP), which is paying its customers between 6 and 22 February 2024.

This is the third of three payments totalling up to £900 for those eligible and on means-tested benefits, such as Universal Credit, Pension Credit, or tax credits, in 2023/24 and comes as part of the government’s £104 billion cost of living support package.

These payments are tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.

Myrtle Lloyd, HMRC Director General for Customer Services, said:

“The £299 Cost of Living Payment will deliver further financial support to eligible tax credits customers across the UK. To make things as simple as possible, the payment is made automatically with no action required from HMRC’s customers.”

The payment from HMRC to tax credits customers will appear on bank statements as ‘HMRC COLS’, referencing Cost of Living Support. Those receiving the payment from DWP will see the payment reference as their National Insurance number followed by ‘DWP COL’.

If customers have not received the Cost of Living Payment from HMRC between the published payment dates, but believe they are eligible, they should wait until after 23 February to contact us. This is to allow time for their bank, building society or credit union to process the payment.

Receiving a previous Cost of Living Payment does not guarantee customers will get this payment. Customers must meet the individual eligibility criteria for each payment, as published on GOV.UK.

Payment from HMRC will be made automatically into the bank account where eligible customers receive their tax credits. They do not need to do anything to receive a payment. They do not need to contact HMRC or apply for the payment.

Customers should beware of scams targeting Cost of Living Payments. If someone contacts them about this payment saying they are from HMRC or DWP, it might be a scam. People can check advice on spotting scams by visiting GOV.UK and searching ‘HMRC phishing and scams’. They can also check on GOV.UK that any contact is genuinely from HMRC.

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2 Comments for Tax credits recipients to receive Cost of Living Payment:

2024-02-18 11:25:43

Yay more free money - no wonder taxes are at record levels

2024-02-18 12:45:00

Alright for some.

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