Government issues Treasury Direction setting out legal framework for the £500 one-off Covid-19 support payment for working tax credit claimants

Made under provisions in the Coronavirus Act 2020, the new Direction requires HMRC to be responsible for assessing eligibility and making payments

The Government has issued a Treasury Direction that sets out the legal framework for the £500 one-off Covid-19 support payment for working households receiving tax credits.

Made under section 76 of the Coronavirus Act 2020, the new Direction -

‘… requires Her Majesty’s Revenue and Customs (HMRC) to be responsible for the payment and management of amounts to be paid under the scheme set out in the Schedule to this direction (the Covid-19 support scheme: working households receiving tax credits).'

The Schedule to the Direction provides for a support payment of £500 to be made to a 'qualifying person', defined as a person who, on 2 March 2021 -

• had a current award of working tax credit at a rate other than a nil rate; or
• had a current award of working tax credit at a nil rate and a current award of child tax credit at a rate other than a nil rate.

In addition to providing further details of eligibility conditions, the Direction confirms that entitlement to a support payment is without prejudice to any entitlement to other payments under any similar schemes arising from a direction made under section 76 of the Coronavirus Act 2020.

The Coronavirus Act 2020 Functions of Her Majesty’s Revenue and Customs (Covid-19 support scheme: working households receiving tax credits) Direction is available from gov.uk