Working Tax Credit Loophole

rickyengland1966

I phoned the Working Tax Credit number today.....apparantly im entitled to £52 per week. I recently have started a new job on £14.5k a year. The past tax year I only worked for a short while earning only £900 before going onto job seekers. Im 26 and live at hime with my parents. Is this a loophole in the system? I know its based on last years earnings but it bascailly means anyone who has been unemployed should cash in on the working tax credit for a year when they get back to work. Im happy about it of course but just seems a bit odd, what do you think?

NASA_2

Dont think its a loophole - WTC is just a weird benefit.

xmaslolly76

Ricky just be carefull are they aware of your new earnings and has the amount you have been told taken that into account. I would phone and check as you dont want to be stung next year by them saying you have been over paid :-)

kaylzbob

It's just they way it works, it's supposed to entice people back to work. Enjoy it while you can!!

System

He won't be stung next year provided his income hasn't increased above £900 by more than £25000.

1 point though, the income you need to declare for last year is all taxable income and so JSA would be included so you need to make sure you give TCO that figure along with the £900 employment income.

donnajunkie

rickyengland1966 wrote: »

I phoned the Working Tax Credit number today.....apparantly im entitled to £52 per week. I recently have started a new job on £14.5k a year. The past tax year I only worked for a short while earning only £900 before going onto job seekers. Im 26 and live at hime with my parents. Is this a loophole in the system? I know its based on last years earnings but it bascailly means anyone who has been unemployed should cash in on the working tax credit for a year when they get back to work. Im happy about it of course but just seems a bit odd, what do you think?

keep in mind that at the end of the financial year it will be cut, probably to around £30 per week.

Amistoso_2

he will end up being over paid and have to pay it all back! there's no way a single person earning 14.5k a year is entitled to £52 a week wtc. They will have based this on him telling them he only earned £900 last tax year.

nottslass_2

Amistoso wrote: »

he will end up being over paid and have to pay it all back! there's no way a single person earning 14.5k a year is entitled to £52 a week wtc. They will have based this on him telling them he only earned £900 last tax year.

As Pam17 says,he won't have to pay it back unless he earns over 25k more. Its just the way it system works - mind you I doubt that the op will get anything next year

bestpud

That's the way it works so, as said, enjoy it while you have it!

To avoid a potential overpayment next year, make sure you call them before April 2011 and let them know what your earnings for this year will be. If you don't, they will base your provisional award for next year on the lower figure and you will accrue an overpayment between April 2011 and the time you renew (could be as late as July).

skcollobcat10

Hello,

Do you get that as a single man with no partner or children, living at home with your parents? If so, it does sound like a loophole.

Indie_Kid

skcollobcat10 wrote: »

Hello,

Do you get that as a single man with no partner or children, living at home with your parents? If so, it does sound like a loophole.

You can claim WTC as a single childless non-disabled person if you're over 25 and work 30+ hours a week. Living with parents doesn't matter.