HMRC Working Tax Credits and Child Tax Credits…

HMRC Working Tax Credits and Child Tax Credits payments rise starting today

As revealed by HM Revenue and Customs (HMRC), Tax Credits rates will increase for all claimants starting today.

People who receive Working Tax Credits or Child Tax Credits payments will have their maximum annual rates increased for the 2022/23 financial year.

Dependent on circumstances, claimants may be eligible to receive one or both of the payments — and may additionally be eligible to receive one of two types of disability element add-ons.

Important to note is that these are for claimants who already receive the legacy benefits, and new applications should be done via the Department for Work and Pensions (DWP) for Universal Credit.

Working Tax Credit is intended for workers who have a low income, and whether they are self-employed or have an employer is not relevant — nor is whether they have any children.

Child Tax Credit, meanwhile, is designed to help those who have children, and is paid on top of Child Benefit and the Scottish Child Payment — whether you are in employment or not is irrelevant.

HMRC data reveals that there were nearly 2 million families claiming either Child Tax Credit or Working Tax Credit in December 2020.

As reported by the Daily Record, here is a summary of the proposed new payment thresholds and rates for the 2022/23 financial year.