HMRC is urging those on low incomes to claim £1,200 bonus on savings | Personal Finance | Finance

HMRC is giving people who have savings an extra bonus of £1,200.

Help to Save is a Government savings scheme for low-income earners and offers savers a 50 per cent bonus payment on their savings, up to £1,200.

Brits can save between £1 and £50 every month and for every £1 deposited, they get 50p back.

The scheme was launched in September 2018 and HMRC is urging individuals to take advantage of the generous savings scheme this World Savings Day.

Victoria Todd, Head of the Low Income Tax Reform Group, said: “For those who are able to take part, the Help to Save account is a very attractive savings scheme, particularly when the saver is able to maximize their bonuses. They can do this by paying the maximum amount every month and not making any withdrawals.

“Those who are eligible can still receive bonus payments, even if they cannot save the maximum amount. That’s why we recently welcomed the extension of the scheme to April 2025.”

The latest figures show that almost 450,000 customers opened a Help to Save account between September 2018 and March 2023, with almost £372.5 million paid into the accounts during that time.

It takes less than five minutes to open an account. Customers can check eligibility and open an account on GOV.UK or via the HMRC app.

Myrtle Lloyd, HMRC’s Director General of Customer Services, said: “Hundreds of thousands of people benefit from Help to Save.

“It’s a great way to save anything you can and the government will match your savings by 50 per cent. It’s quick and easy to apply online or via the HMRC app. Just search for ‘Help with Save on GOV.UK to find out more and apply today.”

Customers can open a Help to Save account if they receive:

  • Working Tax Credit
  • Child Tax Credit and are entitled to Working Tax Credit
  • Universal Credit and had net wages of £722.45 or more (with their partner, if joint claim) in their last monthly assessment period.

The bonus payment applies to the highest amount saved within the period.

Savers who deposit the maximum £2,400 will receive a £1,200 bonus from the government.

Customers can easily manage their savings account online or via the HMRC app.

They can check their balance, view savings and bonus details, find out when a bonus will be paid to them, read any messages, set up a standing order or make withdrawals.

How the bonus payments work

After the first two years, customers will receive the first bonus if they are using their account to save. This bonus will be equal to 50 percent of the highest balance saved.

After four years, they will receive a final bonus if they continue to save. This bonus will be equal to 50 percent of the difference between two amounts:

  • save the highest balance in the first two years (years 1 and 2)
  • the highest balance saved in the last two years (years 3 and 4)

If their highest balance does not increase, they will not earn a final bonus.

The bonus is paid into their bank account, not their Help to Save account.

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