return to work credit (RTWC) query

richytay1

The DWP offer a return to work credit of £40 a week for up to 52 weeks if you have been off work due to an illness or injury and claiming benefits for 13 weeks or more.

For this you have to earn under 15000 a year and work 16+ hours a week.

I'm self employed and after my first 3 months I earned just over £2500 but in the next 3 months i earned just over £4000. I want to find out if the 15,000/year is worked out over the year or in quarters (at 3750/quarter). For example they might argue that 4000 in 3 months= 16,000 a year and disqualify me, when really I've earned 6500 in 6 months which equals 13000/year. Does anyone know?

stazi

DWP/JCP use an annual earnings period for those who are S/E to calculate average earnings for benefit claims.

karenx

Its 52 weeks or more you have to be on qualifying benefits.

stazi

Sorry karenx, the time limit is 13 weeks on a qualifying benefit. RTWC is then payable for a max of 52 weeks.
From-
http://www.adviceguide.org.uk/index/life/benefits/benefits_and_tax_credits_for_people_in_work.htm#return_to_work_credit_after_a_period_of_ill-health

Return to Work Credit after a period of ill-health

Return to Work Credit is a payment of £40 a week. You can get it if you go back to work after a period of ill-heath, as long as you have been claiming certain benefits.
It is payable for a maximum of twelve months.
Return to Work Credit is non-taxable and is not counted as income if you're claiming Housing Benefit or Council Tax Benefit. It is possible for Working Tax Credit and Child Tax Credit to be paid at the same time as Return to Work Credit.
Return to Work Credit has been introduced as part of the Pathways to Work Scheme and is delivered by Jobcentre Plus. For more information about Return to Work Credit and the Pathways to Work scheme, you can ask at your local Jobcentre Plus office or go to the Jobcentre Plus website at: www.jobcentreplus.gov.uk.
Who can get Return to Work Credit

You can get Return to Work Credit if you have been getting one or more of the following benefits paid because of sickness or disability:

• Incapacity Benefit
• Employment and Support Allowance
• Income Support because of sickness or disability
• Severe Disablement Allowance.

You must usually have been getting these benefits for 13 weeks immediately before starting work. However, you could still get Return to Work Credit if you haven't been claiming one of these benefits for 13 weeks, as long as you were claiming Statutory Sick Pay for 13 weeks before making the claim for the benefit.
You must work for at least 16 hours a week in a job that is expected to last for more than five weeks and you must earn no more than £15,000 per year. You qualify for Return to Work Credit if you become self-employed as long as you meet the other conditions.

karenx

Oh Im getting it mixed up with back to work credit! Where you have been on JSA or IS! Sorry

richytay1

stazi wrote: »

DWP/JCP use an annual earnings period for those who are S/E to calculate average earnings for benefit claims.

Thanks, I'm ok then, cos I'll not earn over 15,000 in the 1st 12 months.

Does anyone know if the 15,000/year income cap applies to next year aswell or is it just the first year?

rushofblood

richtay1 your estimated annual salary is checked at the 10 week and 24 week period of your self employment, some areas are being trialled for a 39 week check as well at the moment, using the evidence you provide on the RTWC8 form(s).

The information you provide is averaged out over either 10/14 weeks and then multiplied by 52 to get your estimated annual salary. If at these checks it is over £15,000 gross per annum then your claim would be closed and overpayment recovery put in place to the date where it went over the £15,000.

For the average hours worked per week it is worked out as an average over the 10/14 week period at the same time.

Anything you earn after these checks is not likely to be checked unless you've been a really bad boy

From the information you gave in your first post it don't sound like you'd be eligible... unless of course you are already on rtwc.

Just to add to stazi's info, you need to start employment/self employment within 5 weeks of leaving the qualify benefit & you must send in your application within 5 week of start your employment/self employment.