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Tax Credits are changing in April - here are the new annual payment rates and thresholds
14.02.2022 - 17:28 / dailyrecord.co.uk
HM Revenue and Customs (HMRC) has confirmed that Tax Credits payments will be changing in April for all benefits claimants.
People receiving Working Tax Credits and Child Tax Credits payments will see the maximum annual rates increase for the 2022/23 financial year which starts on April 6.
Depending on your household circumstances, you may be eligible for one or both payments, or you may also qualify for one of two types of disability element add-ons. However, it’s worth noting these are for existing claimants already receiving the legacy benefit and any new claims should be made through the Department for Work and Pensions (DWP) for Universal Credit.
Working Tax Credit is paid to people who are in work and on a low income – it does not matter whether you are an employee or self-employed, and you do not need to have children to get the payment.
Child Tax Credit is paid to people who have children and is paid in addition to Child Benefit and the Scottish Child Payment - you do not have to be working to receive it.
Figures from HMRC show that in December 2020 there were approximately 1.99m families claiming Child Tax Credit and/or Working Tax Credit with some 3.6m children in Tax Credit claiming families.
Here are the details of the proposed new payment thresholds and rates for the 2022/23 financial year.
These changes will come into effect on April 6.
There are two Child Benefit rates in place.
The new weekly rate for Guardian's Allowance will be £18.55 - an increase of 55p on the current 2021/22 rate of £18.00.
Full details of the rate changes can be found on the GOV.UK website here.
Use the Tax Credits calculator here to work out how much you could get.
To keep up to date with the latest benefits news join our Money Saving
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