Working Tax Credit

watsonnicole1

Hi All,
Hopefully someone can help me figure something out for my SIL.

As the moment (after just having a baby) and Single she gets

Income support
Rent Allowance
Council Allowance
Child Ben
Child Tax
All comes to about £1000 a mth.

She has been offered a job at 32 hours a week pay will be about £750 after deductions. She wants to take it but will have to put her nipper in child care which is going to cost ££'s! She told me she will not get WTC at all and it's working out that she's not much better off if she takes the job.. I thought you get WTC when you go to work on low income?

She seems to think she will be better looking at a job with less hours? I have looked on that entitled to website and it does say she will get no WTC... It's just bonkers! so basically she cannot afford to take the job. Am i missing something here?

Thanks

cabbage

Hi

She should be entitled to wtc. As a parent of qualifying child, she needs to work 16 hours a week or more to qualify. If her gross is around say £1000 that would give her an annual income of £12k so she should qualify on low income grounds and as a parent. If she works 30 hours or more a week she will get a premium for that and also an additional amount for having a child under one.

I would suggest she gets a benefit check from CAB or Local Auhthority's Welfare rights service

watsonnicole1

Hi Thank You for that, I thought that too.

How come when we both do that entiled to thing it say's she gets nothing on the wtc?

i've just spoken to her again and at the min she gets £20 C/B, £66 CTC, £110 housing and £60 odd

The job is £13950 but states pro rata but they have offered her 32 hours (about £11k)

Can anyone help me with some sort of figures I can show her. I don't really know how much Child care is but I guess about £60 a day? (she will need 3 days)

I don't want to seem like i'm pushing her to take the job but she's really low at the mo after her marraige split and I think it will do her the world of good!
Thank you

I should add that the entilied to site says she keeps her Housing ben and Council tax benefit, It just shows her income support goes completely and her ctc goes dwn to £18 a week

karenx

With an income of almost 14k then her tax credits on top I really dont think she will get all her rent paid for her. She will get 80% of her child care paid for her with her WTC childcare element

watsonnicole1

karenx wrote: »

With an income of almost 14k then her tax credits on top I really dont think she will get all her rent paid for her. She will get 80% of her child care paid for her with her WTC childcare element

Well I don't know what the entitled to webite is on about then at it states she will but no WTC

karenx

Did you input childcare figures? And whats her LHA rate?

DreamerV

Why don't you go through the hmrc website, since it's hmrc that pays tax credits? Or get her to phone the tax credits helpline on 0845 3003900, with her NI number handy to check her eligbility/entitlement?

If her taxable income is less than about £13100, and she's single she should be entitled to working tax credits if she works at least 16hpw. What income figure did you type into the calculator out of interest? Remember to enter the lower of last tax year's and this tax year's incomes.

karenx

Ok going on the income figure you gave and £175 for childcare per week, this is the max you can claim for 1 child, this is what entitledto gives. This is as if she was starting work today and its till end of the tax year

WTC per week - £170.17
CTC per week - £63.91

watsonnicole1

I see! Thank you Karenx.. HMRC website gave me some weird figures too. I am obviously doing something very wrong!

Her earnings for 08/09 was £4100. I've just done it again and it still shows £110 per week Housing ben & £23 council tax credit & £18.95 CTC. I don't know what we're doing wrong...

Thanks dreamerV - She will have to.. I was just trying to giver her a quick estimate as she has to give a yes or no to the job tonight to start Monday.