HMRC urges thousands to claim £1,200 bonus but there's a catch

Cash-strapped Brits across the nation are being urged to check their eligibility for a 'bonus' worth up to £1,200. Following hikes to a slew of household bills, including Council Tax, road tax, and even the TV Licence Fee, many of us are starting to feel the full wrath of 'Awful April'.

However, HM Revenue & Customs (HMRC) has recently unveiled it has expanded its strict eligibility for its Help to Save scheme. Originally due to end in April 2025, the popular initiative has also been extended by a further two years, until April 2027.

As previously reported, claimants could only open a Help to Save account if they or their partner had a take-home pay of £772.45 or more in their last monthly assessment period. However, Brits on Universal Credit who earn at least £1 from work will now be able to open an account, meaning thousands of adults will now be eligible.

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What is the Help to Save Scheme?

Help to Save allows Brits to earn a 50p bonus for every £1 they manage to save over a four-year period. The scheme is backed by the government, meaning all savings are 'secure'.

"You can save between £1 and £50 each calendar month [but] you do not have to pay money in every month," GOV UK explained. "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 8 January you will not be able to pay in again until 1 February."

You won't receive your bonus (aka 50 per cent interest) until the end of the second and fourth year of opening your account. But, if you're able to save the maximum of £50 every month, you will have saved £2,400 by the end of four years - and a bonus of £1,2000. Even if you're not able to commit to £50 monthly payments for such a long period of time, stashing away £25 every month means you'll receive a hefty £600 bonus.

"Your Help to Save account will close four years after you open it," GOV UK added. "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." However, if you close your account early for any reason - you'll miss your next bonus and won't be able to open another one.

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"Security for working people is at the heart of our Plan for Change," said Economic Secretary Emma Reynolds. "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."

How can I open a Help to Save account?

To open a Help to Save account, you'll need your National Insurance number or postcode. You will also need two of the following documents, and should have your bank details ready:

• 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)

Click here to apply for a Help to Save account. Alternatively, call HMRC on 0300 322 7093. If you're in a couple, you and your partner can both open separate Help to Save accounts, even if you receive benefit payments as a couple.

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