Tag: HMRC

Don’t lose out – extend Child Benefit for your 16-19 year-old

More than a million parents will receive reminders from this week to extend Child Benefit for their teenagers if they are continuing their education or training after their GCSEs.

HM Revenue and Customs (HMRC) is sending more than 1.4 million Child Benefit reconfirmation letters to parents between 24 May and 17 July. The letters will include a QR code which, when scanned, directs them straight to GOV.UK to update their claim quickly and easily online.

Child Benefit is worth up to £1,331 a year for the first or only child, and up to £881 a year for each additional child. Payments will automatically stop on 31 August on or after the child has turned 16 unless parents renew their claim where their child is continuing in education.

If their 16 to 19 year-old intends to continue in approved education or training, parents can use the online service on GOV.UK or the HMRC app so they do not miss out.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Child Benefit is an important financial support for many families, so make sure you don’t miss out on any payments if your teenager intends to continue approved education or training.

“You can quickly and easily extend your claim online or via the HMRC app, just search ‘Child Benefit when your child turns 16’ on GOV.UK.”

Parents have until 31 August to take action or their payments will automatically stop. Letting HMRC know digitally that a child is continuing in education is the quickest way to get it sorted, with no need to contact us by phone or post.

If a customer has not received their letter by 17 July, there is no need to worry – if eligible, they can still extend their Child Benefit claim via GOV.UK or the HMRC app.

Child Benefit can continue to be paid for children who are studying full time in approved non-advanced education, which includes:

  • A levels or Scottish Highers
  • International Baccalaureate
  • home education – if it started before their child turned 16, or after 16 if they have a statement of special educational needs and it was assessed by the local authority
  • T levels
  • NVQs, up to level 3.

Child Benefit will also continue for children studying on one of these unpaid approved training courses:

  • in Wales: Foundation Apprenticeships, Traineeships or the Jobs Growth Wales+ scheme
  • in Northern Ireland: PEACEPLUS Youth Programme 3.2, Training for Success or Skills for Life and Work
  • in Scotland: Employability Fund programme and No One Left Behind

If a child changes their mind about further education or training, parents can simply inform HMRC online or in the HMRC app and payments will be adjusted accordingly.

Parents will need a Government Gateway user ID and password to use HMRC’s online services. If they do not have one already, they can register on GOV.UK  and will just need their National Insurance number or postcode, and 2 forms of ID.

Further information:

More information on Child Benefit for 16-19 year olds.

Eligible customers will be unable to update their claim until their letter has been issued by HMRC. All letters will be issued by 17 July. If you have not received a letter by then, the service will be open online or in the HMRC app for all eligible customers.

Parents cannot claim Child Benefit if their child is taking a course that is part of a job contract.

Parents can view and manage their claim quickly and easily online or on the HMRC app. This includes viewing payment information and proof of their claim, adding additional children and updating their details – all without needing to call HMRC.

HMRC uses QR codes in letters and correspondence. The QR code will always take you to GOV.UK or the HMRC app. When you are logged into your HMRC account, we may use QR codes to redirect you.

For example, to take you to your bank’s login page. If we’re using QR codes in communications you’ll be able to see them on the genuine HMRC contacts page.

To help fight phishing scams, send any suspicious emails containing QR codes to phishing@hmrc.gov.uk then delete them.

Early Birds! Over 295,000 file returns in the first week of new tax year

Almost 300,000 Self Assessment customers filed their tax return in the first week of the new tax year, almost 10 months ahead of the deadline, HM Revenue and Customs (HMRC) has revealed. 

Customers can file their Self Assessment returns for the 2023 to 2024 tax year between 6 April 2024 and 31 January 2025.  

Almost 70,000 people filed their return on the opening day this year (6 April) and HMRC is encouraging people to do it early and not to leave it until January. 

Visit GOV.UK to find out more about Self Assessment and how to file a tax return.  

By filing tax returns early, people can take their time to complete their returns – making sure the information is accurate and avoiding the stress of last-minute filing.  

It can also help with budgeting and helping spread the cost of their tax bill. Customers can set up a budget payment plan to make weekly or monthly direct debit payments towards their next Self Assessment tax bill. 

Refunds of overpaid tax will be paid as soon as the return has been processed. Customers can also check if they are due a refund in the HMRC app.  

In recent years, HMRC has seen more and more customers file their tax returns early. Last year, more than 246,000 people submitted their Self Assessment between 6 and 12 April 2023. 

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Filing your Self Assessment early means people can spend more time growing their business and doing the things they love, rather than worrying about their tax return.  

“You too can join the thousands of customers who have already done their tax return for the 2023-24 tax year by searching ‘Self Assessment’ on GOV.UK and get started today.” 

HMRC has updated guidance on filing tax returns early and help around paying tax bills on GOV.UK.  

Anyone who is new to Self Assessment and thinks they might need to complete a tax return for the 2023 to 2024 tax year can use the Self Assessment online tool to check whether they need to register for Self Assessment and submit a return. 

People may need to complete a tax return for the 2023 to 2024 tax year and pay any tax owed if: 

·         they are a self-employed individual with an income over £1,000 

·         they have received any untaxed income over £2,500 

·         they are renting out one or more properties 

·         they claim Child Benefit and they or their partner have an income above £50,000   

·         they are a partner in a partnership 

·         their taxable income earned from savings and investments is more than the £10,000 personal savings allowance 

·         their taxable income earned from dividends is more than £10,000 

·         they have paid Capital Gains Tax on assets that were sold for a profit above the Capital Gains threshold 

A full list of who needs to complete a tax return is available on GOV.UK. 

Pensioners are required to pay Income Tax on any taxable income, including their pension income, above their Personal Allowance threshold. There are different ways to pay any tax owed, depending on the individual’s circumstances, including: 

·         if they already complete a Self Assessment tax return, they will need to report and pay via this route 

·         if they have a PAYE tax code, HMRC will automatically collect any tax through their tax code 

Alternatively, if a pensioner does not already pay tax via Self Assessment or PAYE, HMRC will send them a Simple Assessment summary.

The Simple Assessment will tell them how much Income Tax they need to pay and the deadline – usually by 31 January following the end of the tax year. HMRC produces the Simple Assessment from the information it already holds so people do not need to do anything – there is no form to complete. More information about Simple Assessment is available on GOV.UK. 

It is important that customers let HMRC know if there are any changes in details or circumstances such as a new address or name, or if they are no longer self-employed or their business has closed.

They should not assume someone else will update HMRC on their behalf.

If customers no longer need to do Self Assessment, they will need to tell HMRC. There are videos on YouTube that explains how to stop Self Assessment. 

Criminals use emails, phone calls and texts to try to steal information and money from taxpayers. Before sharing their personal or financial details, people should search ‘HMRC phishing and scams’ on GOV.UK to check the sender or caller is genuine. 

Customers should never share their HMRC sign-in details. Someone could use them to steal from them or claim benefits or a refund in their name. 

HMRC app speeds up student loan applications

With many Scottish Higher students planning their next steps in life, those starting university in September can ‘tap the app’ to get National Insurance and tax information they need to complete their student finance applications, HM Revenue and Customs (HMRC) has said.

Anyone applying for a student loan for the 2024/25 academic year is encouraged to start their application now and to get the essential details they need, including their National Insurance (NI) number, quickly and easily via the HMRC app. 

HMRC data shows that in the 12 months to March 2024, more than 112,000 customers called the National Insurance Helpline asking for a lost or forgotten NI number of which nearly 50% were from customers aged between 16 and 20. It also shows May was the busiest month with more than 6,400 young people calling the helpline for their NI number, coinciding with students applying for their student loans. 

HMRC is encouraging students to save time by downloading the free and easy to use HMRC app for instant access to the details they need.

Suzanne Newton, HMRC’s Director General for Change Delivery said: “Getting your NI number is simple with a tap of HMRC’s app and young people should take advantage of it.

“Download the HMRC app today straight from your phone’s app store to get all the info you need quickly and easily.”  

As well as their NI number, students applying for finance will also need:

  • a working email address
  • a bank account in their own name
  • a valid UK passport
  • course details

Students can also apply for finance to help with cost of living expenses. How much they receive is dependent on household income – as well as where they live while they study. Parents or the partner of students will also need to have their NI number to hand. Visit GOV.UK for more information.

Any details missing from an application could cause a delay and may mean a delay in receiving any loan payments in time for the start of the students’ course so it’s important to keep essential details to hand. 

Bill Watkin, Chief Executive of the Sixth Form Colleges Association said: “Downloading details from the HMRC app will speed up the process of applying for a student loan.

“Preparing for higher education can be a time-consuming process for sixth form students so we are pleased this will help to reduce the administrative burden on young people.” 

Searching for NI information is one of the most popular searches on the HMRC app with almost 900,000 views in the last year and more than 430,000 National Insurance card downloads to customers’ digital wallets. It is available and easy to access whenever they need it.

Essential HMRC Rules for the Self-Employed: Common Pitfalls to Avoid

For self-employed individuals in the UK, understanding and complying with HM Revenue & Customs (HMRC) regulations is crucial.

Managing your own tax affairs can be complex, and certain aspects of the rules are frequently overlooked, leading to errors that can be costly.

Adam Collins, CEO of Ignite SEO aims to highlight common mistakes made by self-employed individuals and offer guidance on how to avoid them:

Failing to Register for Self-Assessment on Time

One of the first steps you need to take as a newly self-employed individual is to register for Self-Assessment. This needs to be done by the 5th of October in your business’s second tax year. Missing this deadline can result in penalties, and you risk getting caught up in last-minute hassles to sort your taxes.

Misunderstanding Expense Deductions

Determining what expenses can be claimed is critical for the self-employed. While you are allowed to deduct legitimate business expenses to reduce your taxable income, not all expenses are allowable.

For instance, personal expenses must be strictly separated from business ones. Common missteps include improperly claiming home office expenses or the cost of commuting, which is not deductible unless it’s travel to a temporary workplace.

Poor Record Keeping

Accurate record-keeping is vital but often neglected by the self-employed. HMRC requires you to keep records of your income and expenses for at least 5 years after the 31 January submission deadline of the relevant tax year. Failure to maintain proper records can lead to inaccurate tax returns and the potential for stressful and costly audits.

Ignoring National Insurance Contributions

Many self-employed people overlook the importance of National Insurance Contributions (NICs). There are two types you might need to pay: Class 2 if your profits are above a small earnings threshold, and Class 4 if your profits exceed a lower limit. Not understanding or forgetting these contributions can lead to unexpected bills and penalties.

Inadequate Planning for Tax Payments

Tax payments can be a significant financial burden if not planned for adequately. Self-employed individuals are required to pay their taxes through Self-Assessment by the 31st of January each year, and those with significant tax bills must also make payments on account, which are advance payments towards the next year’s tax bill, due in January and July. Failing to budget for these can lead to cash flow issues.

Overlooking VAT Registration

If your annual turnover exceeds the current VAT threshold of £90,000, you must register for VAT. Many self-employed individuals either register too late or fail to register at all, which can lead to penalties and a backdated tax bill. Even if you don’t exceed the threshold, voluntary registration might benefit you by allowing you to reclaim VAT on purchases.

Adam Collins, CEO of Ignite SEO says: “Being self-employed brings the freedom to manage your own business, but it also requires diligence in handling your tax affairs.

“By being aware of these common pitfalls and actively working to avoid them, you can ensure that you stay compliant with HMRC’s regulations and avoid unnecessary penalties.

“Regularly updating your knowledge and possibly consulting with a tax professional can also help manage the complexities associated with self-employment taxes.”

HMRC: Time to renew for tax credits customers

Around 730,000 tax credits customers have started receiving their annual renewal notices. HM Revenue and Customs (HMRC) said tax credits claimants will receive them between 2 May and 19 June 2024.

The vast majority of claims will be automatically renewed. Notices with a black stripe are automatically renewed while claimants receiving a notice with a red stripe need to renew.

Fewer than 10,000 customers will need to check their information and renew their claim by 31 July, but failure to do so means they risk having their payments stopped.

The quickest and easiest way for customers to renew their tax credits is via GOV.UK or via the free and secure HMRC app, which allows them to track their claim and find out when they can expect payments.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Tax credits are valued by many families for their essential contribution to the monthly family budget, so to avoid payments being stopped please respond to HMRC by the 31 July deadline. For more information search ‘manage my tax credits’ on GOV.UK.”

Customers must report certain life changes which could affect their claim to HMRC. These include:

·       relationship changes, such as moving in with a new partner, getting married or divorced

·       children leaving home

·       a change in working hours

They can find out more about what changes need to be reported and how to do so online at GOV.UK.

If customers fail to renew by the deadline, they risk their payments being stopped and having to repay any overpayments. The 2024 to 2025 tax credits notices may show predicted payments for the tax year 2025 to 2026 – these are automatically generated and should be disregarded.

Tax credits are ending on 5 April 2025 and are being replaced by Universal Credit. There is information about this at GOV.UK.

Customers will receive a letter from the Department for Work and Pensions, or the Department for Communities if they live in Northern Ireland, explaining what happens next. This letter is called a Migration Notice and customers are urged not to ignore it.

Criminals use deadlines to trick people who might be expecting to hear from HMRC into sharing their banking or other details. 

If a phone call, text or email is unexpected, don’t give out private information or reply, and don’t download attachments or click on links.

Suspicious contact can be reported on GOV.UK.

HMRC: Online voluntary National Insurance payments service launches

The UK Government is making it easier for customers to check for and fill any gaps in their National Insurance (NI) record to help increase their State Pension by launching a new online service today (29 April 2024). 

The Check your State Pension forecast – a joint service by HM Revenue and Customs (HMRC) and the Department for Work and Pensions (DWP) – has been enhanced to include a fully end-to-end digital solution.  

The service will show customers by how much their State Pension could increase and details of the voluntary NI contributions they would need to pay to achieve this. It allows most people under State Pension age to view gaps in their NI record and pay voluntary contributions to fill those gaps, if it will benefit them. 

Anyone with NI gaps in some of their tax years that could increase their State Pension if filled, can use the new digital service to choose which years they would like to pay to fill. They can then pay securely through the service and will receive confirmation that their payment has been received and that their NI record will be updated. 

Customers can access the Check your State Pension forecast via GOV.UK or via the HMRC app. 

Those who are eligible have until 5 April 2025 to pay voluntary contributions to make up gaps in their NI record between 6 April 2006 and 5 April 2018. From 6 April 2025, people will only be able to pay voluntary contributions for the previous 6 tax years, in line with normal time limits.  

Nigel Huddleston, Financial Secretary to the Treasury, said: “Having peace of mind when planning for retirement is crucial to ensure people can enjoy later life.

“That’s why HMRC has launched this new online service today, making a real difference for thousands of pensioners in their retirement while providing certainty to those in their middle years and those still planning ahead.” 

Minister for Pensions, Paul Maynard, said: “The State Pension is the foundation of income in retirement, which is why we have introduced this new online tool to help simplify boosting it for those who are able to.  

“I would encourage everyone to check their State Pension forecast and to take a look at how they could improve their State Pension award with only a few simple clicks.” 

Last year, the government extended the deadline to pay voluntary NI contributions to 5 April 2025 for those affected by new State Pension transitional arrangements. This covers tax years from 6 April 2006 to 5 April 2018.

The extended deadline means that people now have more time to properly consider whether paying voluntary contributions is right for them and ensures no-one need miss out on the possibility of increasing their State Pension. 

Paying voluntary contributions will not always increase their State Pension but everyone can use the new service to check whether they could be better off in retirement before making any voluntary NI payments.  

Customers will need to login to the new digital service using their Personal Tax Account login details. Those without an online HMRC account can register on GOV.UK.  

Everyone should be aware of the risk of falling victim to scams and should never share their HMRC login details with anyone, including a tax agent, if they have one. HMRC scams advice is available on GOV.UK. 

Government rewards hard work with record tax cut for 29 million workers

  • 29 million workers receive largest ever cut to National Insurance
  • Government is sticking to its economic plan and rewarding hard work in this month’s pay packet, with over £900 a year boost for typical worker
  • Signals government’s long-term ambition to end unfair double tax on work

29 million workers will see their hard work rewarded from tomorrow (6 April), as record tax cuts come into full force.

Since Autumn 2023, National Insurance Contributions (NICs) for workers have been slashed by a third – the largest cut to NICs in history – with a longer-term ambition to end the unfair double tax on work and abolish employee and self-employed NICs altogether.

Since January, the main rate of employee National Insurance has been cut for 27 million workers from 12% to 8%, saving the average employee on £35,400 over £900 a year.

Over 2 million self-employed people will benefit from the main rate of Class 4 NICs being cut from 9% to 6% alongside the abolition of the requirement to pay Class 2 NICs – simplifying the tax system and saving an average self-employed person on £28,000 over £650 a year.

These cuts are possible because the economy is turning a corner, thanks to the government’s decisive action to bring inflation down from 11.1% to 3.4% and ensure borrowing costs start to fall. Because of this progress, the government can now cut taxes to reward work and grow the economy.

The tax cuts – worth £20 billion a year – mean that those individuals on average salaries will now pay less in personal taxes than they would in any other G7 country.

Prime Minister Rishi Sunak said: “Hard work is one of my core values, and the progress we have made on the economy means we can reward work with a tax cut worth £900 for the average earner.

“This marks the next step in our plan to end the unfairness of double taxation of work by abolishing National Insurance in the long term.”

Chancellor of the Exchequer, Jeremy Hunt, said: “The record tax cuts taking effect tomorrow show our economic plan is working – because of the progress we’ve made we’re putting hundreds of pounds a year back into the pockets of working people across the country.

“It shows we stand behind those who work hard and fires the starting gun on our long-term ambition to end the unfair double tax on work.”

The tax cuts will also help grow the economy by bringing more people into the labour market. The Office for Budget Responsibility (OBR) expects that, as a result of these combined cuts, total hours worked will increase by the equivalent of almost 200,000 full-time workers by 2028-29.

To mark the record cuts to NICs, HMRC has launched an updated online tool to help people understand how much they personally could save in National Insurance this year. 

They come into effect on the same day as an increase to the income threshold at which the High Income Child Benefit Charge (HICBC) starts – from £50,000 to £60,000 – taking 170,000 families out of paying the charge altogether.

The rate at which the HICBC is charged will also be halved from 1% of the Child Benefit payment for every additional £100 earnt above the threshold, to 1% for every £200, meaning Child Benefit will not be withdrawn in full until individuals earn £80,000 or higher.

As a result of these changes, 485,000 hard-working families will gain an average of £1,260 towards the costs of raising their children in 2024/25.

The government has also committed to consulting in due course on administering the HICBC on a household basis by April 2026, in recognition of how charging on an individual basis can sometimes lead to unfair outcomes, in particular for single parents and single earner families.

These changes to support hard-working families follow a raft of measures that came into force on 1 April that could save households up to £3,850 a year on average to help those struggling with cost-of-living while igniting the economy.

This includes a record increase in the National Living Wage from £10.42 an hour to £11.44, and a 12.3% drop in energy bills from the previous quarter. In addition, households can benefit from a separate increase to the Local Housing Allowance that will mean some of the poorest families on either Universal Credit or Housing Benefit will gain £800 a year on average.

And on Monday 8 April, the government will stand by its commitment to maintain the Triple Lock by raising the full basic State Pension by 8.5% to almost £170 a week, after the largest ever cash increase last year.

Changes like the introduction of the Triple Lock and new State Pension have meant pensioners are on average £1,000 better off than in 2010, according to the Resolution Foundation.

Hop to it – save on Easter childcare costs with Tax-Free Childcare

HM Revenue and Customs (HMRC) is reminding working families to save money on their childcare costs in time for the school holidays

With the Easter break just weeks away, families yet to sign up for Tax-Free Childcare could be missing out on annual savings of up to £2,000 per child, or £4,000 if their child is disabled.

Tax-Free Childcare can help pay for approved childcare for children aged 11 or under, or up to 16 if the child has a disability. Parents can receive up to £500 (or £1,000 if their child is disabled) every 3 months, which means for every £8 paid into their online account, they will automatically receive an additional £2 top up from the UK Government.

It takes just 20 minutes to apply online for a Tax-Free Childcare account and can be used to help pay for a child’s nursery, childminder, breakfast or after school club or holiday activity club.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Springtime is a good opportunity to take a fresh look at family finances.

“A quick check online and you can find out how Tax-Free Childcare can help cut the cost of your childcare bills. Every bit of financial support helps – I would urge families to ’hop to it’ and search ‘Tax-Free Childcare’ on GOV.UK to find out how you could be better off and open your account today.”

Once an account is opened, parents can deposit money immediately, so it is ready to be used whenever it is needed; and unused money in the account can be withdrawn at any time.  

Families could be eligible for Tax-Free Childcare if they:    

  • have a child or children aged 11 or under. They stop being eligible on 1 September after their 11th birthday. If their child has a disability, they may get up to £4,000 a year until 1 September after their 16th birthday  
  • earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average  
  • each earn no more than £100,000 per annum  
  • do not receive tax credits, Universal Credit or childcare vouchers     

A full list of the eligibility criteria is available on GOV.UK.

Families can learn more about the childcare offers available to them and what could fit their family by visiting Childcare Choices.  

The UK Government is offering help for households. Check GOV.UK to find out what cost of living support, including help with childcare costs, families could be eligible for.  

March is top month for Marriage Allowance claims

As the tax year draws to a close, couples who are married or in civil partnerships could be due a financial boost by sharing unused tax allowances.

HM Revenue and Customs (HMRC) has revealed March is the most popular month for Marriage Allowance applications, with almost 70,000 couples across the UK applying in March last year.

And with the option to backdate their claim for the previous four tax years, eligible couples could receive a lump-sum payment worth more than £1,000, in addition to reducing their tax bill for the 2023 to 2024 tax year by up to £252.  

People can find out in 30 seconds if they are eligible by using the online Marriage Allowance Calculator.

Marriage Allowance saves couples money by allowing the lower or non-earner to reduce the amount of tax their partner pays by transferring up to £1,260 of their Personal Allowance to their husband, wife or civil partner.

The easiest way to claim Marriage Allowance is online via GOV.UK.

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said:   “Marriage Allowance keeps money in your pocket by reducing the amount of tax you and your spouse pay by up to £252 a year.

“You can check your eligibility and apply on GOV.UK. Search ‘Marriage Allowance’ to find out more.” 

To benefit from the tax relief in Scotland, one partner must have income less than the Personal Allowance of £12,570, and the higher earning partner’s income must be between £12,571 and £43,662.

The UK Government is offering help for households. Check GOV.UK to find out what financial and practical support, including income support, people could be eligible for. 

Tax credits recipients to receive Cost of Living Payment from today

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 than7 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 UK 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.

Additional information

The Cost of Living Payments – worth £900 in total in 2023/24 – come on top of a significant package of support which has been delivered since autumn 2021. Including:

  • Cutting taxes for over 29 million working people this year through a 2% cut to Class 1 National Insurance Contributions, worth £450 per year on average.
  • Cutting taxes for self-employed people by cutting Class 4 contributions, benefitting 2 million people, and abolishing Class 2 contributions, a tax cut worth an average of £350 per year.
  • Paying three million households the £150 Warm Home Discount this winter and 8.9 million pensioner households up to £600 in Winter Fuel Payments in December last year.
  • Providing the £650 Cost of Living Payments in 2022/23 and an additional cash boost on top of this payment including £300 to pensioner households; £150 to disabled individuals in 2022 and last year.
  • Paying around half of the typical household energy bill between October 2022 and July 2023 through our Energy Price Guarantee and £400 support scheme.
  • Extending the 5p fuel duty cut and cancelling the planned increase – saving the average driver £100 this year.
  • Increasing the Universal Credit work allowance and cutting the taper rate, which was worth an extra £1,000 a year to families on Universal Credit.

Vulnerable people will continue to be supported with the cost of living from April this year by:  

  • Uprating benefits in line with inflation by 6.7%.  
  • Maintaining the triple lock and increasing the state pension by 8.5% - after the largest ever cash increase last year for around 12 million pensioners.
  • Investing £1.2 billion to restore Local Housing Allowance rates to the 30th percentile of local market rates, meaning 1.6 million private renters will see nearly £800 in additional help.
  • Increasing the National Living Wage by its largest ever cash amount in April – worth over £1,800 to the gross annual earnings of a full-time worker – and lowering the age threshold for eligibility by 2 years.

We encourage people in need of additional support over the winter to check their eligibility through the UK Government’s Help for Households website for the various cost of living schemes that are place.