Choose when and how you get paid
Important
The first step in applying for Working for Families Tax Credits is to choose when and how you get paid. You must do this before you apply as this information is needed on the application form.
Choose when you get paid
What you can do
You can choose to receive Working for Families Tax Credits from us:
- in weekly or fortnightly payments, or
- as an annual payment, paid as a lump sum after the end of the tax year (31 March).
All payments
We make all payments directly into the bank or building society account of the principal child carer.
Weekly or fortnightly payments
- You need to estimate your family income for the year as accurately as possible because we base your payments on this estimated amount.
- At the end of the tax year, we assess your yearly entitlement based on your actual income for the year.
- If you underestimated your income, you may end up having to pay us back after the end of the tax year.
Annual payment
Annual payments are paid as a lump sum based on the actual family income for the related tax year.
Choosing the annual lump sum payment
You can choose to receive Working for Families Tax Credits as an annual lump sum payment if:
- your family income changes each week, eg the hours you or your partner work changes each week
- you or your partner are unsure of your income, or
- you find it hard to accurately estimate your family income.
Lump sum payments are based on your actual income, so there is no possibility of an overpayment and having to pay us back at the end of the tax year. Lump sum payments are normally processed in June and July each year.
How to tell us about your payment option
You tell us what payment option you have chosen when you complete the Working for Families Tax Credits registration form. You can either complete this online, or post us a completed form.
If you are registering online
- The questions shown on the online form will change depending on your chosen payment option.
If you are posting your registration form to us
- If you choose weekly or fortnightly payments, complete all the questions on the Working for Families Tax Credits registration form.
- If you choose an annual payment, complete all the questions on the Working for Families Tax Credits registration form except for the "Family income" section.
Changing your payment option
You can change your payment option any time. You may wish to do this for budgeting reasons or because you have a change of circumstances.
If you previously chose the annual payment option and want to switch to either weekly or fortnightly payments instead, you will need to send us proof of your income details so we can calculate your entitlement correctly.
Choose how you get paid
What you can do
You can choose to have Working for Families Tax Credits payments from us direct credited to your bank account or your building society account.
Important
You cannot request to receive payments in cash or cheque.
How to tell us about it
The table below explains how to tell us about how you want to get paid.
| If you choose to receive your payments direct credited to your... | then... |
|---|---|
|
bank account |
complete the details in the Working for Families Tax Credits registration form as required. Important The bank account must be in the name of the principal child carer (or a joint account in which the principal child carer is an account holder). This is because Working for Family Tax Credits payments must be paid to the principal child carer. |
|
building society account |
|
Next steps
Date published: 09 Mar 2007
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