Tax credit for zero hour contract
landlord2016
Posts: 46 Forumite
The situation is bellow.
Husband is working zero hour contract. Yearly 20,000 .
Applied tax credit in August 2017 due to change in job and income.
Only getting child tax credit.
Wife get CA . Child get DLA.
Other income 3500.
Husband work varies from week to week.
From August works per week hours
42 44 43 36
31 25 31 38
31 12 44 33
49 36 53 23 37
29 24 24 16 0
Monthly Worked Hours
180
123
161
165
December Expected 72
Husband thinking to inform tax credit office that his regular working hours has changed.How many hours he told because it varies week to week.
Husband is working zero hour contract. Yearly 20,000 .
Applied tax credit in August 2017 due to change in job and income.
Only getting child tax credit.
Wife get CA . Child get DLA.
Other income 3500.
Husband work varies from week to week.
From August works per week hours
42 44 43 36
31 25 31 38
31 12 44 33
49 36 53 23 37
29 24 24 16 0
Monthly Worked Hours
180
123
161
165
December Expected 72
Husband thinking to inform tax credit office that his regular working hours has changed.How many hours he told because it varies week to week.
0
Comments
-
0
-
Many Thanks for the reply.
On the website .midlandheart
If your hours of work change weekly then an average
will be taken of the 5 weeks prior to you making a
claim. If you have just started work then they will use
the average hours of work you are expected to do until
accurate figures can be provided and then your award
will then be amended if it needs to be.
I do not think average is correct.0 -
How many hours did he tell them?0
-
Darksparkle How many hours did he tell them?
30 Hours.
And December month weekly work is estimated as work may increase.
29 24 24 16 00 -
The OP stated December was estimated at 72? That’s 93. Anyway it’s the weekly hours they request.
Yes he’ll need to inform them. They have an additional element on their claim for working 30hrs or more and this will need to be removed.0 -
He is NOT receiving working tax credit as income is high . But any change should inform .
Just wait couple of days as work may increase rest of December0 -
landlord2016 wrote: »He is NOT receiving working tax credit as income is high . But any change should inform .
Just wait couple of days as work may increase rest of December
Wtc elements will be included on his claim and they are tapered before CTC. Therefore removal of WTC elements will affect his CTC.0 -
The website info about averaging over 5 weeks is not correct.
The hours that count as those 'normally' worked. HMRC have, in their guidance, defined this meaning if a drop in hours lasts less than 4 weeks then it doesn't disrupt the normal working hours. It therefore looks like he needs to report a fall in hours because he will definitely be below 30 a week for four weeks in December.
Also, DS is right, they are entitled to WTC and taking out the 30 hour element will impact the tapering on the CTC award.
IQ0 -
HMRC said
Do not ‘average’ the hours the claimant works in order establish the claimant’s ‘normal’ working hours. This calculation is not allowed under tax credits legislation.
Work the claimant normally does
The Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002, Reg. 4(3)
Count work the claimant normally does and if the claimant has started or is expected to start a new job, the hours should be based on those the new employer expects him to work.
If the claimant has started self-employment or changed his working hours, establish the hours worked based on the number of hours the person expects to normally work in a week.
The word “normally” should be given its ordinary everyday meaning of regularly, usually, typically. In contrast with what is abnormal or exceptional.
Note: Do not ‘average’ the hours the claimant works in order establish the claimant’s ‘normal’ working hours. This calculation is not allowed under tax credits legislation.
https://www.gov.uk/hmrc-internal-manuals/tax-credits-technical-manual/tctm024510 -
landlord2016 wrote: »HMRC said
Do not ‘average’ the hours the claimant works in order establish the claimant’s ‘normal’ working hours. This calculation is not allowed under tax credits legislation.
Work the claimant normally does
The Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002, Reg. 4(3)
Count work the claimant normally does and if the claimant has started or is expected to start a new job, the hours should be based on those the new employer expects him to work.
If the claimant has started self-employment or changed his working hours, establish the hours worked based on the number of hours the person expects to normally work in a week.
The word “normally” should be given its ordinary everyday meaning of regularly, usually, typically. In contrast with what is abnormal or exceptional.
Note: Do not ‘average’ the hours the claimant works in order establish the claimant’s ‘normal’ working hours. This calculation is not allowed under tax credits legislation.
https://www.gov.uk/hmrc-internal-manuals/tax-credits-technical-manual/tctm02451
Yes, that's what I said above - it is normal hours that count.
IQ0
This discussion has been closed.
Categories
- All Categories
- 343.1K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.6K Spending & Discounts
- 235.2K Work, Benefits & Business
- 607.8K Mortgages, Homes & Bills
- 173K Life & Family
- 247.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards