HMRC urges Brits to claim £1,200 bonus - but there's a catch
HMRC urges Brits to claim £1,200 bonus - but there's a catch
Thousands of people may be able to claim a bonus worth up to £1,200
The Help to Save scheme allows Brits to earn a 50p bonus for every £1 they save
(Image: WalesOnline/Rob Browne )
People feeling the pinch from recent increases in household bills, including Council Tax, road tax, energy bills and the TV Licence Fee, are being encouraged to check if they're eligible for a 'bonus' of up to £1,200. This comes as many people grapple with the financial impact of what's been dubbed 'Awful April'.
HM Revenue and Customs (HMRC) has announced an expansion of its Help to Save scheme, which was originally set to end in April 2025 but has now been extended by two years to April 2027.
Previously, only Universal Credit claimants who, along with their partner, had a take-home pay of £772.45 or more in their last monthly assessment period could open a Help to Save account.
Now the eligibility criteria have now been broadened to include those on Universal Credit who earn at least £1 from work, potentially making thousands more adults eligible. For money-saving tips, sign up to our Money newsletter here .
The Help to Save scheme allows Brits to earn a 50p bonus for every £1 they save over a four-year period. The scheme is government-backed, ensuring all savings are 'secure', reports the Mirror.
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HMRC has provided some clarity on the Help to Save scheme, explaining that individuals can save between £1 and £50 each month, but it's not mandatory to make a deposit every month.
"You can save between £1 and £50 each calendar month [but] you do not have to pay money in every month," it said.
The account accepts payments via debit card, standing order, or bank transfer, and multiple deposits are allowed within the monthly limit.
"You can pay money into your Help to Save account by debit card, standing order or bank transfer and can pay in as many times as you like, but the most you can pay in each calendar month is £50. For example, if you have saved £50 by January 8 you will not be able to pay in again until February 1," the HMRC said.
The bonus, which equates to 50% interest, is only paid out at the end of the second and fourth year after opening the account. By saving the maximum amount of £50 every month, one could accumulate £2,400 over four years, with an additional bonus of £1,200.
Even for those who can't commit to saving £50 monthly, putting aside £25 each month would still yield a significant £600 bonus.
The Help to Save account automatically closes after four years from its opening date. Once closed, it cannot be reopened or replaced with another Help to Save account, and early closure means forfeiting the next bonus.
"You will not be able to reopen it or open another Help to Save account. You'll be able to keep the money from your account," the rules state.
However, closing the account prematurely will result in missing out on the subsequent bonus and the inability to open a new one.
"Security for working people is at the heart of our Plan for Change," Economic Secretary Emma Reynolds said. "We want more people to have a bit in the kitty for a rainy day, which is why we are giving hundreds of thousands more working families on tight budgets access to this support."
Myrtle Lloyd, HMRC's Director General for Customer Services, added: "Thousands of customers have already benefitted from Help to Save and many more are now eligible to get a great return of 50 per cent on top of their savings, no matter how little you can save each month. Go online or via the HMRC app to find out more and apply today."
To open a Help to Save account you'll need your National Insurance number or postcode to start. Additionally, be prepared with two of the following documents and have your bank details at hand:
Valid UK passport
UK photocard driving licence issued by the DVLA (or DVA in Northern Ireland)
Details of a tax credit claim, if you made one
Details from a Self Assessment tax return in the last 2 years, if you made one
Information held on your credit record, if you have one (such as loans, credit cards or mortgages)
To start applying for a Help To Save account click here Alternatively, you can contact HMRC directly on 0300 322 7093.
If you're part of a couple, both you and your partner are eligible to open individual Help to Save accounts, even if you receive benefits jointly.
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