HMRC internal manual

Tax Credits Manual

TCM0232240 - Payment - payment profile: Payment profile - payment frequency (Info)

Direct payments

One-off payments

Direct payments

The standard pay frequencies for direct payments are weekly or four-weekly, to be paid in arrears.

The claim form will ask the family what pay frequency they want. If the customer doesn’t state what pay frequency they would prefer, the computer will assume that payment is four-weekly.

Each tax credit has its own payment frequency. Therefore, a family will be able to receive direct payments for different tax credits at different pay frequencies, if this is what they want.

Note: The Working Tax Credit (WTC) childcare element will be treated as Child Tax Credit (CTC) when establishing pay frequency.

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One-off payments

If the regular amount of the award is below the set amount (currently under £2.00 weekly), a one-off payment covering the whole period, or any balance remaining after a change of circumstance, will be paid for that tax credit.

When more than one tax credit is to be paid to the same customer at the same frequency, the payments will be combined. When this is the case, the combined total will be used to determine whether a one-off payment should be made.

The above information will be applied each time a daily rate changes.