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  • CAB Birmingham representative
    Hi,

    Me and my husband are expecting and both work full time. When we have a baby it is unlikely that I will be able to return to work as we both work shifts so the cost of childcare will be to high. I have completed a calculator on the web though for tax credits we could be entitled to and it took my income into account for last year and thus we went over the treshold. My husband earns 16000 before tax so this is what we have to live off. If I quit my job after maternity leave will it take last years income into account so we will not be entitled to tax credits or will it take my current income which would be zero in to account. I am quite worried at the moment so any help most appreciated, We could get by with tax credits however without we will find it a real struggle although not as bad a having to pay childcare at nearly my wage eeek!
    Originally posted by MrsGeee


    Dear MrsGeee

    Thank you for your email.

    When you first make a claim for Tax Credits, it will be calculated based on you and your partners income for the previous tax year (which is why they’ve taken your salary into account).

    At the end of the tax year (April 5th) the HMRC will finalise your entitlement by comparing your current years income (the year you make the claim) with that of the previous tax year. If the current years income is less, your final entitlement is based on the current years income.

    So, in essence, the HMRC will take your previous years income into account however, they will only use it to compare your current years income with. If your current year’s income is less than the previous year’s income (which in your case you stated as ‘nil’) then the HMRC should only take into account your current year’s income when calculating you and your husband’s entitlement to WTC.

    The HMRC will only take your previous years income into account if your income has stayed the same or increased by £10,000.

    If you have any further queries, please contact the Tax Credit Helpline on: 0345 300 3900.

    Kind regards,

    Birmingham CAB
    Official CAB Representative
    I am an official representative of CAB. MSE has given permission for me to post in response to questions on the CAB Board. You can see my name on the companies with permission to post list. If you believe I’ve broken any rules please report my post to forumteam@moneysavingexpert.com as usual"
  • CAB Birmingham representative
    SqueekyMouse

    Thank you for your enquiry

    Regarding your question on your entitlement to J.S.A. you may be entitled to Contribution Based JSA depending on your class I National Insurance contributions made over the past two years. If you are entitled this is paid for a period of 6 months before you are re-assessed and if applicable placed on income based JSA.This would then depend on your total household income and would be affected by your Husbands salary.

    Your Tax Credits can be affected by any income from a contribution based JSA and we would refer you to the HMRC website for further information on this. This can be accessed through hmrc.gov.uk./tax credits.

    Regarding your question as to the calculation of income and how this will be affected by your change in income you can use the tax credit calculator on the above hmrc website by typing in to the search engine "Tax Calculator."for an estimate. You could also ring the Tax Credit Helpline on 03453003900 for further clarification of this.

    Regards

    Birningham Citizens Advice Bureau
    Official CAB Representative
    I am an official representative of CAB. MSE has given permission for me to post in response to questions on the CAB Board. You can see my name on the companies with permission to post list. If you believe I’ve broken any rules please report my post to forumteam@moneysavingexpert.com as usual"
  • CAB Birmingham representative
    Hi Kezia,

    Having read your enquiry we feel that there is a factsheet which would answer most of your questions. Please click on the following HMRC link which will take you directly to ‘Tax credits when your partner leaves or your new partner moves in’

    http://www.hmrc.gov.uk/taxcredits/keep-up-to-date/changes-affect/family-change/partner-change.htm

    In regards to the overpayment, you have a few options, you may ‘dispute’ the decision which means that you would like the HMRC to look at their decision again.

    Alternatively, you may appeal the decision. This should be done within 30 days from the date of the decision letter. You can appeal by putting it in writing and clearly stating why you believe their decision to be wrong. If you would like some assistance with this, please contact your local Citizens Advice Bureau.

    Please note ‘You can't, appeal against a decision to ask you to pay back a correct overpayment. But you can appeal if you think the amount of tax credits you were awarded in the first place was wrong’

    The following link will provide you with more in-depth information on how to appeal or dispute tax credit overpayments:

    advicenow.org.uk/taxcreditoverpayments

    Kind regards,

    Birmingham CAB
    Official CAB Representative
    I am an official representative of CAB. MSE has given permission for me to post in response to questions on the CAB Board. You can see my name on the companies with permission to post list. If you believe I’ve broken any rules please report my post to forumteam@moneysavingexpert.com as usual"
  • metalsmurf
    Thanks for your reply.
    • Icequeen99
    • By Icequeen99 27th Jun 12, 11:02 AM
    • 3,388 Posts
    • 2,301 Thanks
    Icequeen99
    Dear MrsGeee

    Thank you for your email.

    When you first make a claim for Tax Credits, it will be calculated based on you and your partners income for the previous tax year (which is why they’ve taken your salary into account).

    At the end of the tax year (April 5th) the HMRC will finalise your entitlement by comparing your current years income (the year you make the claim) with that of the previous tax year. If the current years income is less, your final entitlement is based on the current years income.

    So, in essence, the HMRC will take your previous years income into account however, they will only use it to compare your current years income with. If your current year’s income is less than the previous year’s income (which in your case you stated as ‘nil’) then the HMRC should only take into account your current year’s income when calculating you and your husband’s entitlement to WTC.

    The HMRC will only take your previous years income into account if your income has stayed the same or increased by £10,000.

    If you have any further queries, please contact the Tax Credit Helpline on: 0345 300 3900.

    Kind regards,

    Birmingham CAB
    Originally posted by CAB Birmingham representative
    Just to add to this, the CAB answer is correct but it fails to mention the £2,500 disregard which is important in your case. The first 2,500 of the fall in income from previous year to current year will be disregarded.

    If the fall in income is less than 2,500 then previous year income will be used.

    IQ
    • enabledebra
    • By enabledebra 27th Jun 12, 8:54 PM
    • 7,395 Posts
    • 10,909 Thanks
    enabledebra
    Just to add to this, the CAB answer is correct but it fails to mention the £2,500 disregard which is important in your case. The first 2,500 of the fall in income from previous year to current year will be disregarded.

    If the fall in income is less than 2,500 then previous year income will be used.

    IQ
    Originally posted by Icequeen99

    That's right- and the HMRC tax credits estimate calculator doesn't do it for you so you need to add the figure yourself if applicable- see here for how to use the calculator when you income will be lower in the current year http://www.hmrc.gov.uk/taxcredits/payments-entitlement/entitlement/question-how-much.htm#3
    • enabledebra
    • By enabledebra 27th Jun 12, 9:34 PM
    • 7,395 Posts
    • 10,909 Thanks
    enabledebra
    Hi Kezia,

    Having read your enquiry we feel that there is a factsheet which would answer most of your questions. Please click on the following HMRC link which will take you directly to ‘Tax credits when your partner leaves or your new partner moves in’

    http://www.hmrc.gov.uk/taxcredits/keep-up-to-date/changes-affect/family-change/partner-change.htm

    In regards to the overpayment, you have a few options, you may ‘dispute’ the decision which means that you would like the HMRC to look at their decision again.

    Alternatively, you may appeal the decision. This should be done within 30 days from the date of the decision letter. You can appeal by putting it in writing and clearly stating why you believe their decision to be wrong. If you would like some assistance with this, please contact your local Citizens Advice Bureau.

    Please note ‘You can't, appeal against a decision to ask you to pay back a correct overpayment. But you can appeal if you think the amount of tax credits you were awarded in the first place was wrong’

    The following link will provide you with more in-depth information on how to appeal or dispute tax credit overpayments:

    advicenow.org.uk/taxcreditoverpayments

    Kind regards,

    Birmingham CAB
    Originally posted by CAB Birmingham representative
    Just to give a bit more clarity about the steps to be taken if you want to challenge the decison(s) The difference between a dispute and an appeal and which process is appropriate can be found here
    http://www.revenuebenefits.org.uk/tax-credits/guidance/how-to-deal-with-hmrc/appeals/starting-an-appeal/

    HMRC will often try to guide a challenge down the dispute route incorrectly and may try to convince you an appeal is not needed. If you feel an appeal is appropriate make sure you insist on that process being used.
    Last edited by enabledebra; 27-06-2012 at 9:38 PM. Reason: to quote correct post
  • garfieldd
    Son potentially coming to live with me?
    I am a single working (full time) male for your information. This actually is a generic benefit enquiry that I may post in other areas asking for advice.

    It has almost been agreed that my son, aged 11 will come and live with me when and if I find a suitable property that will house both of us. Currently it is not possible for him to come and live with me as I am living in a rented room.

    I have middle rate DLA, and my son is in receipt of the middle rate care and lower rate DLA.

    I have had a benefit check if the above situation happens and it appears it is possible to rent privately with LHA supporting my income. Working/Child Tax Credits will also help.

    However, my issue is that he may be going to a specialist school from September (Year 7). I am wondering how it would affect his DLA and my Tax Credit as well as my Housing Benefits? He may be coming home every weekend as that is the reason he is coming to live with me, as he needs a father figure to discipline him and teach him life skills (his mother is on benefits and I am only thinking he is becoming too smart to cave in to her and answers back). His mother is not able to cope with 3 other young children (only two of the four are mine).

    Here are my questions
    • How will my WTC/CTC be affected?
    • How will his DLA be affected?
    • How will my Housing Benefit be affected?
    • Is there anything else I should be aware of?

    Finally, how do I start with informing my council (which is a different council) to agree to my son to go to the specialist school which the other borough have already agreed to do? What is the process and how do I start if we decided to go ahead.

    Many thanks

    A
  • CAB Birmingham representative
    I am a single working (full time) male for your information. This actually is a generic benefit enquiry that I may post in other areas asking for advice.

    It has almost been agreed that my son, aged 11 will come and live with me when and if I find a suitable property that will house both of us. Currently it is not possible for him to come and live with me as I am living in a rented room.

    I have middle rate DLA, and my son is in receipt of the middle rate care and lower rate DLA.

    I have had a benefit check if the above situation happens and it appears it is possible to rent privately with LHA supporting my income. Working/Child Tax Credits will also help.

    However, my issue is that he may be going to a specialist school from September (Year 7). I am wondering how it would affect his DLA and my Tax Credit as well as my Housing Benefits? He may be coming home every weekend as that is the reason he is coming to live with me, as he needs a father figure to discipline him and teach him life skills (his mother is on benefits and I am only thinking he is becoming too smart to cave in to her and answers back). His mother is not able to cope with 3 other young children (only two of the four are mine).

    Here are my questions
    • How will my WTC/CTC be affected?
    • How will his DLA be affected?
    • How will my Housing Benefit be affected?
    • Is there anything else I should be aware of?
    Finally, how do I start with informing my council (which is a different council) to agree to my son to go to the specialist school which the other borough have already agreed to do? What is the process and how do I start if we decided to go ahead.

    Many thanks

    A
    Originally posted by garfieldd

    Dear Garfieldd

    Thank you for your enquiry.

    If you are currently receiving the basic element of Working Tax Credit (WTC) this should not change. You may however be entitled to other elements such as ‘the lone parent element’ if your son stays with you.

    In order to receive Child Tax Credit (CTC) you must be able to show that you are ‘responsible’ for your son. Whether or not you are responsible for your son will depend on whether he normally lives with you. The term ‘normally’ allows for temporary/ occasional absences. Therefore, your son may still count as living with you even if he is away from home as long as you are the main carer.

    Please bear in mind that you and the child’s mother can not claim Child Tax Credit for the same child. You will have to decide on who should get it.

    For further information, you may need to contact the tax credit helpline on 0345 300 3900.

    Disability Living Allowance (DLA) should still be paid to you on your son’s behalf but only during a temporary separation. If your son will be back home every weekend, it may not be an issue.

    DLA does not count as income so it will not affect Housing Benefit.

    If there are any changes to your circumstances, please notify the relevant benefit offices to prevent the risk of being overpaid. If your son’s mother is in receipt of child benefit, you will need to get this transferred into your name.

    If you still require further assistance, it may be best for you to come into your local bureau. You can search for your nearest bureau and their opening times on:

    http://www.citizensadvice.org.uk/

    Kind regards,
    Birmingham CAB
    Official CAB Representative
    I am an official representative of CAB. MSE has given permission for me to post in response to questions on the CAB Board. You can see my name on the companies with permission to post list. If you believe I’ve broken any rules please report my post to forumteam@moneysavingexpert.com as usual"
    • Getmeoutofdebt
    • By Getmeoutofdebt 5th Aug 12, 11:08 AM
    • 356 Posts
    • 986 Thanks
    Getmeoutofdebt
    Hi there,
    I am in £25K of debt and no assets and am 5 months into a self managed debt management plan with the help of National Debtline / Cashflow. My husband has just has an accident and is hospitalised and is told it will be 6 months before he can walk / work again. He was only three weeks into a new job! His new boss isn't communicating with us and we are panicking about money. If he manages to get S.S.P through work, can he get anything else like tax credits or incapacity benefit? We are scared that without his wage we may go bankrupt. We were struggling on his full wage!
    Many thanks
    LBM 01/03/12 Debt £27924
    now £0 100% paid
  • mynameistallulah
    Hi there,
    I am in £25K of debt and no assets and am 5 months into a self managed debt management plan with the help of National Debtline / Cashflow. My husband has just has an accident and is hospitalised and is told it will be 6 months before he can walk / work again. He was only three weeks into a new job! His new boss isn't communicating with us and we are panicking about money. If he manages to get S.S.P through work, can he get anything else like tax credits or incapacity benefit? We are scared that without his wage we may go bankrupt. We were struggling on his full wage!
    Many thanks
    Originally posted by Getmeoutofdebt
    Do you work? Your benefit entitlement will be based on your household income.
    • Getmeoutofdebt
    • By Getmeoutofdebt 5th Aug 12, 11:22 AM
    • 356 Posts
    • 986 Thanks
    Getmeoutofdebt
    Yes I work but my wage is only just covering debts and food, hubby pays other bills hence the panic!
    LBM 01/03/12 Debt £27924
    now £0 100% paid
  • mynameistallulah
    Yes I work but my wage is only just covering debts and food, hubby pays other bills hence the panic!
    Originally posted by Getmeoutofdebt
    Input your figures into one of the benefits calculators, they will tell you if you are entitled to anything. Unless you live in an area with high rents, or you earn very little, don't expect it to be a great deal.
    • Former MSE Wendy
    • By Former MSE Wendy 6th Aug 12, 4:38 PM
    • 868 Posts
    • 1,782 Thanks
    Former MSE Wendy
    Hi folks

    Can I make a request that this thread is only used for people to ask a question and for the official CAB representative to reply.

    It's great that so many want to try and help answer questions but we would like to keep the sticky threads as official as possible.

    This doesn't apply to non sticky threads in the CAB board where any replies you are able to give are appreciated.

    Thanks all
  • CAB Birmingham representative
    Hi there,
    I am in £25K of debt and no assets and am 5 months into a self managed debt management plan with the help of National Debtline / Cashflow. My husband has just has an accident and is hospitalised and is told it will be 6 months before he can walk / work again. He was only three weeks into a new job! His new boss isn't communicating with us and we are panicking about money. If he manages to get S.S.P through work, can he get anything else like tax credits or incapacity benefit? We are scared that without his wage we may go bankrupt. We were struggling on his full wage!
    Many thanks
    Originally posted by Getmeoutofdebt



    Hi Getmeoutofdebt,

    Thank you for your enquiry.

    In regards to claiming benefits with SSP, may we direct you to our factsheet on ‘Off work because of sickness’ which can be accessed through:

    http://www.adviceguide.org.uk/england/work_e/work_time_off_work_e/off_work_because_of_sickness.htm#statutory_sick_pa y

    Statutory Sick Pay (SSP) can be paid for up to 28 weeks. If your partner cannot get SSP, for example, because he does not earn enough (£107 p/w), or if the 28 week period comes to an end, his employer will provide him with a form SSP1. Your partner can then use form SSP1 to claim Employment and Support Allowance (ESA) from your local Jobcentre Plus.

    (for further information on what ESA is and how to make a claim please click on:
    http://www.adviceguide.org.uk/england/benefits_e/benefits_sick_or_disabled_people_and_carers_ew/employment_and_support_allowance.htm )

    Please note that as of 31st January 2011, you cannot make a new claim for Incapacity Benefit. You should make a claim for ESA instead.

    WTC could be paid alongside SSP however it is dependant on various factors e.g. how many hours your partner worked and how long he is off work for. You can find further information on:

    http://www.hmrc.gov.uk/taxcredits/keep-up-to-date/changes-affect/work-changes/no-work-illness.htm

    Alternatively, you may wish to contact the tax credit helpline on 0345 300 3900

    As mentioned in previous posts, benefits are calculated on household income so your earnings will also be taken in to account. It may be worth having a benefit check to see if you are eligible for any other benefits by contacting Turn2us:

    Website: www.turn2us.org.uk Tel: 08088022000

    Turn2us is an charity which provides information on benefits, benefit checks and grants.

    Kind regards,

    Birmingham CAB
    Official CAB Representative
    I am an official representative of CAB. MSE has given permission for me to post in response to questions on the CAB Board. You can see my name on the companies with permission to post list. If you believe I’ve broken any rules please report my post to forumteam@moneysavingexpert.com as usual"
    • gilligansyle
    • By gilligansyle 10th Aug 12, 10:12 AM
    • 4,104 Posts
    • 22,131 Thanks
    gilligansyle
    This is a question on behalf of my son aged 25 - he was laid off from his job in April last year and has been looking for work since then. He moved from contribution based JSA to income based JSA, and has had some casual work during this time (and has signed off on each occasion)
    He now has a chance to go to college in September on a retraining course and has been told that he won't get JSA because he's not available for full time work, although he would look for work that fitted around his course. He sees re-training as the only way he can get a job in the current climate.
    This presumably leaves him in a catch 22 situation, if he's in receipt of benefits, he doesn't pay course fees, but being on the course means he then has no income and can't get there. Would he be entitled to any other benefit? He lives at home, so has no rent etc. to pay, but I do not have the spare income to support him through college.
  • CAB Birmingham representative
    This is a question on behalf of my son aged 25 - he was laid off from his job in April last year and has been looking for work since then. He moved from contribution based JSA to income based JSA, and has had some casual work during this time (and has signed off on each occasion)
    He now has a chance to go to college in September on a retraining course and has been told that he won't get JSA because he's not available for full time work, although he would look for work that fitted around his course. He sees re-training as the only way he can get a job in the current climate.
    This presumably leaves him in a catch 22 situation, if he's in receipt of benefits, he doesn't pay course fees, but being on the course means he then has no income and can't get there. Would he be entitled to any other benefit? He lives at home, so has no rent etc. to pay, but I do not have the spare income to support him through college.
    Originally posted by gilligansyle
    Dear Gilligansyle,

    Thank you for your enquiry.

    Unfortunatley, most full time students are unable to claim income related benefits unless they are single parents, have a disability or have a partner who is also a student.

    It may be worth your son contacting the college directly to see if they offer any bursaries or financial support.

    ‘Discretionary Learner Support’ May also be another source of help. For further information on this, please click on the following directgov link:

    http://www.direct.gov.uk/en/EducationAndLearning/AdultLearning/FinancialHelpForAdultLearners/DG_10033131

    You may also access further funding advice on the National Careers Service Website:

    https://nationalcareersservice.direct.gov.uk/advice/courses/funding/Pages/default.aspx

    We hope you find this information useful.

    Kind regards,
    Birmingham CAB
    Official CAB Representative
    I am an official representative of CAB. MSE has given permission for me to post in response to questions on the CAB Board. You can see my name on the companies with permission to post list. If you believe I’ve broken any rules please report my post to forumteam@moneysavingexpert.com as usual"
  • Hotspur111
    Tax Credits
    Hi
    I was made redundant on 30 March 12 and submitted my Tax Credit claim, all was well and I have received my payments every week since then.
    I contacted the HMRC helpline today as I have not received my payment due last Friday. I was told that I was no longer entitled to TCs as my income last year was too high, which I don't dispute.
    However, my income for this tax year will be JSA(CB) for 6 months £1846 and my wife's annual earnings of £20,995 giving an annual income of £22,841.
    Given my income has reduced by more than £2,500 should I not be receiving TCs as I have already?
    many thanks
  • CAB Birmingham representative
    Hi
    I was made redundant on 30 March 12 and submitted my Tax Credit claim, all was well and I have received my payments every week since then.
    I contacted the HMRC helpline today as I have not received my payment due last Friday. I was told that I was no longer entitled to TCs as my income last year was too high, which I don't dispute.
    However, my income for this tax year will be JSA(CB) for 6 months £1846 and my wife's annual earnings of £20,995 giving an annual income of £22,841.
    Given my income has reduced by more than £2,500 should I not be receiving TCs as I have already?
    many thanks
    Originally posted by Hotspur111
    Dear Hotspur111,

    HMRC should take in to account changes to your circumstances when calculating your entitlement. You stated that HMRC no longer believe you are eligible after you told them of the reduction in your income? If this is the case, you may request a written explanation for their decision. If their decision still remains the same you can appeal.

    For further information on this please click on the following link headed ‘problems with benefits and tax credits’:

    http://www.adviceguide.org.uk/england/benefits_e/benefits_benefits_introduction_ew/problems_with_benefits_and_tax_credits.htm#get_the _decision_looked_at_again

    For the purposes of checking your entitlement to tax credits, you may wish to go through the tax credit calculator:

    http://taxcredits.hmrc.gov.uk/Qualify/DIQHousehold.aspx

    To check your entitlements to any other benefits you could contact Turn2us – a charity providing independent benefit advice on 0808 802 2000 / www.turn2us.org.uk.

    Kind regards,

    Birmingham CAB
    Official CAB Representative
    I am an official representative of CAB. MSE has given permission for me to post in response to questions on the CAB Board. You can see my name on the companies with permission to post list. If you believe I’ve broken any rules please report my post to forumteam@moneysavingexpert.com as usual"
  • divadeus1
    Redundancy & benefits
    Hi, my husband will shortly be made redundant after 8 years with company & will receive a decent payoff which may include some element for time in lieu.

    He's not sure yet if he's going to 'actively seek work' straight away (due to wanting to sort out health issues first). In this case would he still be able to sign on for NI contributions benefits (ie without being available for work) nb he has approx 25 years worth on NI contributions. If so does this involve weekly/fortnightly signing on?

    If he does look for work straight away would time in lieu payment invalidate any jobseekers allowance (contributions based) claim until that time period is up?

    Many thanks
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