Can You Get Tax Credits Payments Changed From Weekly To Monthly?
By
HuutiMoney
If you are wondering whether or not you can get your tax credit payments changed from a weekly to a monthly schedule, you will find the answer to your question in the following blog post. In addition to this, we will also weigh the pros and cons of receiving tax credits payments in a weekly versus a monthly timeframe so that you are able to assess how this change may affect your budget and expenses.
Can You Get Tax Credits Payments Changed From Weekly To Monthly?
Yes, you can get your tax credits payments changed from weekly to monthly payments. In fact, with Universal Credit replacing tax credits all over the UK, payments for the benefit will automatically be changed to a monthly frequency.
This means that anyone wishing to file for a new claim for tax credits will not be able to do so and claimants who are currently receiving tax credits payments are being asked to transfer to Universal Credit with a fresh application. The transition is expected to be complete by 2024.
If you are already receiving payments for tax credits, you would know that the benefit is paid in arrears. While applying for tax credits, you can mention in your application whether you would like to be paid via weekly or monthly payment. This frequency can be changed by requesting the Tax Credits department at HMRC.
However, if there are too many changes requested by a claimant, there are chances of (a) your request not being entertained by the authorities; or (b) the claimant being put under investigation while their payments are halted during the course of the investigation.
Should You Get Tax Credits Payments Changed From Weekly To Monthly?
Whether or not you should get your tax credits payments changed from weekly to monthly depends on the following factors:
- your income
- your expenses
- your spending habits
If you have a low income, you may be more likely to benefit from weekly payments, giving you more money to manage each week.
Meanwhile, if you have regular, predictable expenses, such as rent or a mortgage, then monthly payments may be a good option for you.
On the other hand, if you are prone to overspending, then weekly payments may be a better option for you, as this will help you to budget your money more carefully.
It is advisable to decide on your preferred course of action before placing a request with the Tax Credits department.
What Are The Pros And Cons Of Weekly Vs Monthly Payments For Tax Credits?
There are some pros and cons of getting tax credits payments on a weekly schedule as compared to receiving monthly payments. Some of the common ones are discussed below:
| Pros | Cons |
| Monthly Payments: You get a larger amount of money each month, which can give you more flexibility in your budgeting.You may save money on bank charges if you make fewer withdrawals. | Monthly Payments: You have to wait longer to get your money, which can make it difficult to budget for your expenses.You may be more likely to overspend if you have a large amount of money in your account. |
| Weekly Payments: You get your money sooner, which can help you budget for your expenses.You may be less likely to overspend if you receive your money in smaller amounts more often. | Weekly Payments: You may have to manage your finances more carefully to avoid running out of money before your next payment.You may have to pay more in bank charges if you make a lot of small withdrawals. |
Ultimately, the best payment frequency for you will depend on your individual circumstances and preferences. If you are comfortable managing your finances and don’t mind waiting a few weeks for your money, then weekly payments may be a good option.
However, if you prefer to have a larger amount of money to manage and you don’t mind waiting a month for your payment, then monthly payments may be a better option for you.
Conclusion:
The above discussion helps to conclude that claimants can get their weekly tax credits payments transferred to monthly payments by informing the Tax Credits department at HMRC. However, they should be careful about making frequent changes to their payment schedule as this can affect their benefit claim.
References:
Tax credits: your payment dates – GOV.UK