If you are receiving payments under tax credits in the United Kingdom, there is something important for you to know—tax credits will end completely after 5 April 2025. This means that no new payments will be made after this date. You will be sent a letter from HM Revenue and Customs (HMRC) telling you whether you are eligible for Universal Credit or Pension Credit.
This change is part of the wider welfare reform process being carried out by the Government. If you were previously dependent on tax credits, it is important that you find out as soon as possible what support you will receive next.
How and when are tax credit payments made?
Tax credit payments are usually made weekly or once every 4 weeks. When you apply for tax credits, you decide whether you would like to receive payments weekly or every 4 weeks.
If you don’t have a claim form or you are having trouble deciding which way to receive payments, you should contact HMRC directly.
Change in payment date on bank holidays
When there is a bank holiday in the UK, payments for that day are usually made on the preceding working day. Below are some important bank holidays and their actual payment dates:
| Scheduled Date | Payment Date |
|---|---|
| 25 December 2024 | 24 December |
| 26 December 2024 | 24 December |
| 27 December 2024 (Northern Ireland only) | 24 December |
| 1 January 2025 | 31 December |
| 2 January 2025 | 31 December |
| 17 March 2025 | 14 March |
It is therefore important to check your award notice regularly to ensure you are paid on time.
What is the payment amount?
The amount you’ll get from tax credits in 2025 is as follows:
Working Tax Credit:
- Basic amount: £2,280 per year
- If you’re a couple or a single parent: £2,340 extra
- If you work 30 hours, you get £950 extra
- If you have children or are disabled, you may get more extra money
Child Tax Credit:
- Basic family element: £545 per year
- Per child: £3,235 (first child), £2,845 per child for other children
The amount you get depends on your total income, number of children and hours worked. HMRC assesses your tax credits every year.
What to do if a payment is late?
If you think your payment is late or has not arrived, the first thing to do is
- Confirm the payment date on your award notice.
- Contact your bank and ask why the payment has not arrived.
- If you don’t hear from the bank, contact HMRC.
Remember, sometimes payments can be delayed by 1-2 days due to technical reasons or bank holidays. So instead of panicking, check all possibilities first.
Universal Credit or Pension Credit: What is the new option?
After 5 April 2025, HMRC will send you a letter telling you if you are eligible for Universal Credit or Pension Credit.
Universal Credit:
- This is an integrated benefit scheme that combines 6 different benefits. It is specifically for people who are working but have low income or are unemployed.
Pension Credit:
- This is for people aged 66 or over. If your pension income is too low, this credit provides the financial support you need.
You should apply on time according to the letter you receive from HMRC so that your financial support is not interrupted.
Conclusion: Be prepared for the change on time
The end of tax credits in the UK is a big change, but if you are prepared with the right information, it can be an easy transition.
What you need to do:
- Pay attention to the dates on your award notice
- Read the letter you receive from HMRC carefully
- Apply for Universal Credit or Pension Credit on time
- Check with your bank first in case of a payment delay
If you prefer, you can find out more on the HMRC website or apply for Universal Credit online.
FAQs
Q. When do Tax Credits end?
A. Tax Credits will officially end on 5 April 2025.
Q. Will I receive payments after 5 April 2025?
A. No, no payments will be made after this date.
Q. How often are Tax Credits paid?
A. Payments are made weekly or every 4 weeks, based on your choice during the claim.
Q. What happens on bank holidays?
A. If your payment date falls on a UK bank holiday, it may be paid early.
Q. What if I don’t receive my payment on time?
A. Check your award notice and bank first. If needed, then contact HMRC.