Benefit check

13Kent

It's very confusing!!

But if the PWC is deemed as being on a benefit (due to getting working tax credit) then the CSA tell us their income is NIL despite them both working.

Kimitatsu

Unfortunately that is right if it is a joint claim - they have to earn under about £17,500 (ish cant remember the exact figure off the top of my head) and then they will be eligible for working tax credits. Even if they are only entitled to £1 of it they will be assessed as having a nil income.

One of them has to be working over 30 hours a week though in order to claim this. I dont know where they are in the country but if they are on minimum wage then that is very possible.

13Kent

Is that each or between them?

13Kent

Also, if we were to find that they were no longer getting WTC and their income was not deemed to be nil would it actually make a difference to the assessment in any way?

13Kent

Also (sorry for all the questions!!) if we were to discover that they no longer had 'NIL income' due to not getting WTC then would any re-assessment be backdated to the time they stopped receiving the aforementioned benefit?

Is that the sound of NRP's laughing I can hear???!!!

kelloggs36

It won't be backdated - only from the time a new assessment was requested.

Will it make a difference? That depends on what the individual income of the PWC is. PWC will get allowance for her, allowance for the child, half allowance for the new child, housing costs offset against her net income. If there is anything left it is halved and included in the assessment, which will reduce the NRP contribution a bit. if nothing left, it won't make any difference whatsoever.

Kimitatsu

13Kent wrote: »

Is that each or between them?

That figure is between them and is only for WTC, for CTC it can be up to £55k

13Kent

Based on their standard of living, and the jobs they have I'm pretty sure they earn more than £17,500.

Are CTC considered a benefit too?

Kimitatsu

As far as I am aware - Kellogs correct me if I am wrong please , CTC will not be taken into account as their net income but CTC alone would not automatically give them a nil income.

Bear in mind though that tax credits work a year behind, so they work on the current situation and last years income. So if they earned less than £17,500 between them last year then they would be entitled to WTC, even if they earn more this year and any overpayment will be recovered next year. Thats because of the £25000 disregard rule, which states that if their income does not go up by more than £25,000 they do not have to automatically notify HMRC.

Sounds to me like you need to ask for a new assessment if your husbands income has not risen dramatically over the last few years.

kelloggs36

It is working tax credits only which gives a nil income.