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    • pbmatt
    • By pbmatt 4th Feb 18, 7:28 PM
    • 76Posts
    • 226Thanks
    pbmatt
    What classes as a change of circumstances Tax Cred
    • #1
    • 4th Feb 18, 7:28 PM
    What classes as a change of circumstances Tax Cred 4th Feb 18 at 7:28 PM
    Hi all

    Currently on Tax Credit however our area is now a full Universal Credit area. I know you have to move over to Universal if you have a change in circumstances but does that also mean if you have a reduction in income. My hours got cut at work last summer and Iím about £4K worse of because of it, Iím worried about reporting the change as I was left some inheritance (which is making up the £4k shortfall while I search for extra hours) and I would fall foul of the savings rule.

    My question is does a reduction of income class as a change of circumstances and trigger a move over to Universal Credit.
Page 1
    • Alice Holt
    • By Alice Holt 4th Feb 18, 7:37 PM
    • 1,780 Posts
    • 1,991 Thanks
    Alice Holt
    • #2
    • 4th Feb 18, 7:37 PM
    • #2
    • 4th Feb 18, 7:37 PM
    https://www.welfare-benefits-unit.org.uk/wp-content/uploads/2016/03/What-triggers-a-claim-for-Universal-Credit-in-a-full-service-area.pdf

    Only if your hours have reduced to below 16.
    An income change should not trigger a move over to Universal Credit.
    I'm assuming that the reduction in hours have not taken you below the minimum hours necessary to claim TC.
    Last edited by Alice Holt; 04-02-2018 at 7:43 PM.
    • Icequeen99
    • By Icequeen99 4th Feb 18, 7:38 PM
    • 3,508 Posts
    • 2,383 Thanks
    Icequeen99
    • #3
    • 4th Feb 18, 7:38 PM
    • #3
    • 4th Feb 18, 7:38 PM
    The income is not an issue here but the hours might be.

    How many hours were you working and what did they cut them to? We would need to know your age, if you claim any of the disability elements, if you have children, a partner (their working hours) to know if it would trigger a move to UC.

    Problem is, if it does impact on your tax credits, you are going to have a hefty tax credit overpayment if this hours change happened in the Summer and you haven't told HMRC.

    IQ
    • pbmatt
    • By pbmatt 4th Feb 18, 7:59 PM
    • 76 Posts
    • 226 Thanks
    pbmatt
    • #4
    • 4th Feb 18, 7:59 PM
    • #4
    • 4th Feb 18, 7:59 PM
    The income is not an issue here but the hours might be.

    How many hours were you working and what did they cut them to? We would need to know your age, if you claim any of the disability elements, if you have children, a partner (their working hours) to know if it would trigger a move to UC.

    Problem is, if it does impact on your tax credits, you are going to have a hefty tax credit overpayment if this hours change happened in the Summer and you haven't told HMRC.

    IQ
    Originally posted by Icequeen99
    Thanks both that have replied.

    Hours were cut from 25 to 20, I have found another part time job but itís only 5 or 6 hours once every 3 weeks or so. So I guess I will tell them I do 21 hours a week now. Iím 42, have 2 kids and my partner works 25 hours a week (but at a school, term time only). We are fortunate not to have to claim for any disabilityís.
    • Icequeen99
    • By Icequeen99 4th Feb 18, 8:02 PM
    • 3,508 Posts
    • 2,383 Thanks
    Icequeen99
    • #5
    • 4th Feb 18, 8:02 PM
    • #5
    • 4th Feb 18, 8:02 PM
    Thanks both that have replied.

    Hours were cut from 25 to 20, I have found another part time job but itís only 5 or 6 hours once every 3 weeks or so. So I guess I will tell them I do 21 hours a week now. Iím 42, have 2 kids and my partner works 25 hours a week (but at a school, term time only). We are fortunate not to have to claim for any disabilityís.
    Originally posted by pbmatt
    In that case, the hours change won't affect your tax credits. The income change might of course. It won't trigger a need to claim UC>

    IQ
    • pbmatt
    • By pbmatt 4th Feb 18, 9:01 PM
    • 76 Posts
    • 226 Thanks
    pbmatt
    • #6
    • 4th Feb 18, 9:01 PM
    • #6
    • 4th Feb 18, 9:01 PM
    In that case, the hours change won't affect your tax credits. The income change might of course. It won't trigger a need to claim UC>

    IQ
    Originally posted by Icequeen99


    Thank you for your help, do you mean the income change still wont trigger a UC claim or just the hours change wont. Sorry if that's a dumb question but the whole system confuses me.
    • Icequeen99
    • By Icequeen99 4th Feb 18, 10:20 PM
    • 3,508 Posts
    • 2,383 Thanks
    Icequeen99
    • #7
    • 4th Feb 18, 10:20 PM
    • #7
    • 4th Feb 18, 10:20 PM
    Thank you for your help, do you mean the income change still wont trigger a UC claim or just the hours change wont. Sorry if that's a dumb question but the whole system confuses me.
    Originally posted by pbmatt
    Sorry, neither will trigger a UC claim but the change in income might affect your tax credits amount either this year or next.

    IQ
    • atlantis187
    • By atlantis187 4th Feb 18, 10:24 PM
    • 1,008 Posts
    • 381 Thanks
    atlantis187
    • #8
    • 4th Feb 18, 10:24 PM
    • #8
    • 4th Feb 18, 10:24 PM
    What about if some is claiming only tax credits and carers allowance but then careers allowance stops and just claims tax credits will this trigger a move to UC
    • hotwinehouse
    • By hotwinehouse 4th Feb 18, 10:34 PM
    • 1 Posts
    • 0 Thanks
    hotwinehouse
    • #9
    • 4th Feb 18, 10:34 PM
    • #9
    • 4th Feb 18, 10:34 PM
    Hi just wondering if anyone can help me, a few years ago I applied for working tax credit as my husband was unemployed but not entitled to any benefit after his 26 weeks on Unemployment. We filled in all forms etc and were awarded £20 per month, however when time came to fill in renewal form we were informed they had made a mistake and had to pay back the money we received. Since then I have had a form every year to tell me we are not entitled to any benefit. Then last week I find a payment in my bank from WTC for a substantial amount of money, no letter or info to say why. The only change in our circumstance is my husband now claims the higher element of PIPS. I finally recieved a letter yesterday saying it is because of this that we are now entitled. But I have not let them know or filled in any forms, so am confused as to how they know and to where they get the figures from that they are basing the award on. I feel sure they will be asking for this money back again.
    Sorry for the long post.
    • poppy12345
    • By poppy12345 4th Feb 18, 10:43 PM
    • 2,095 Posts
    • 1,985 Thanks
    poppy12345
    Hi just wondering if anyone can help me, a few years ago I applied for working tax credit as my husband was unemployed but not entitled to any benefit after his 26 weeks on Unemployment. We filled in all forms etc and were awarded £20 per month, however when time came to fill in renewal form we were informed they had made a mistake and had to pay back the money we received. Since then I have had a form every year to tell me we are not entitled to any benefit. Then last week I find a payment in my bank from WTC for a substantial amount of money, no letter or info to say why. The only change in our circumstance is my husband now claims the higher element of PIPS. I finally recieved a letter yesterday saying it is because of this that we are now entitled. But I have not let them know or filled in any forms, so am confused as to how they know and to where they get the figures from that they are basing the award on. I feel sure they will be asking for this money back again.
    Sorry for the long post.
    Originally posted by hotwinehouse
    It's always better to start your own post rather than adding a question on the end of another person thread.

    DWP and HMRC are linked and this is most likely why they knew. If you're worried then ring HMRC tomorrow morning and ask. I'm not sure why you've left it this long without ringing if you're that worried.
    • pbmatt
    • By pbmatt 5th Feb 18, 6:01 PM
    • 76 Posts
    • 226 Thanks
    pbmatt
    Sorry, neither will trigger a UC claim but the change in income might affect your tax credits amount either this year or next.

    IQ
    Originally posted by Icequeen99
    Thank you ever so much.

    I have updated it online last night and checked it today and it says my actual payment amount has gone down by about 15%, doesnít seem right but I guess I will just have to wait and see what happens.
    • Ames
    • By Ames 5th Feb 18, 6:03 PM
    • 16,886 Posts
    • 29,566 Thanks
    Ames
    It's always better to start your own post rather than adding a question on the end of another person thread.

    DWP and HMRC are linked and this is most likely why they knew. If you're worried then ring HMRC tomorrow morning and ask. I'm not sure why you've left it this long without ringing if you're that worried.
    Originally posted by poppy12345
    At the moment it seems newbies aren't allowed to start new threads. There's a thread on the site feedback forum about it.

    hotwinehouse, I'll start a new thread for you.
    Unless I say otherwise 'you' means the general you not you specifically.
    • Icequeen99
    • By Icequeen99 5th Feb 18, 7:31 PM
    • 3,508 Posts
    • 2,383 Thanks
    Icequeen99
    Thank you ever so much.

    I have updated it online last night and checked it today and it says my actual payment amount has gone down by about 15%, doesnít seem right but I guess I will just have to wait and see what happens.
    Originally posted by pbmatt
    You will need to check the award notice to make sure everything is recorded correctly.

    IQ
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