Working Tax Credits - claiming when due to go back to university

chudleyette

I've just sent back my renewal pack and told them that my estimated income this year is £17,000 gross, which is basically half my annual salary as I am due to go back to university in September to take a postgrad course. I've had a look at the online calculator and it seems to suggest that with that income for the year I would get around £800 p/month which would cover my daughter's nursery fees.

What I am worried about is that once I stop working the situation will completely change and that it is too simplistic to just average out my earnings over the year. Does anyone have any experience of this? I have tried to explain it to them but they don't seem to understand that I need to plan ahead and have a good estimate of my income for the next year in order to be able to budget, they just say to let them know when any circumstances change and they will recalculate. Which could leave me in arrears exactly when I can't afford to be!

Any advice would be much appreciated.

bestpud

The only problem you may face is if you end up earning more than that, as you will not have the income disregard to fall back on. Keep a close eye on your earnings and tell them immediately if it looks as though your annual income will rise above £17k so they can adjust your award.

So long as you stay within that income it really is that simple.

I'm assuming you are paying for childcare from your WTC and CTC and not claiming the childcare element? Or you will carry on working over 16 hours a week if you are claiming the childcare element?

chudleyette

bestpud wrote: »

The only problem you may face is if you end up earning more than that, as you will not have the income disregard to fall back on. Keep a close eye on your earnings and tell them immediately if it looks as though your annual income will rise above £17k so they can adjust your award.

So long as you stay within that income it really is that simple.

I'm assuming you are paying for childcare from your WTC and CTC and not claiming the childcare element? Or you will carry on working over 16 hours a week if you are claiming the childcare element?

Thanks bestpud, that sounds too good to be true! I will definitely not be earning more than that as leave my job in September and won't be able to work whilst on the course as it involves intensive training. However, I've just re-run the calculation again and it says the majority of the amount (£500ish p/month) would be the childcare element of working tax credit. So can't I claim this??

adolphin10

Just to let you know I asked if I should add up my childcare costs for whole year and average out or average out what they are now and then change them by a lot in Sept when they drop and I was told to do the change when it happens even though I know about it now. so maybe you have to put your salary now as you are only supposed to do changes when they happen (and you are not earning 17000/12 but 34000/12) if that makes sense?

chudleyette

Oh yes I see what you mean. Sounds like it's best to err on the side of caution with these things!

TaxCreditHelp

Working Tax Credit and Child Tax Credit are paid together and through the same system but work slightly differently.

Working Tax Credit is payable when you work a minimum of 16 hours per week, and as the name suggests, you need to be working in employment or self-employment to receive this. The amount of Working Tax Credit you receive for 2010/2011 is based on your estimated income from 6th April 2010 to 5th April 2011. This is not averaged over the year but is taken as one total figure to cover the entire period.

Child Tax Credit is paid, based on the number of children you have (the children you receive Child Benefit for), and the amount received can vary with age. For Example, there is an additional 'Baby' element for any child under 1, and a 'Young Person' element for any child over 16 but continuing in Full Time Non-Advanced Education. ChildCare is paid as part of Child Tax Credits but you must be in receipt of Working Tax Credit to be eligible. If you are not employed then you will not be eligible for help with ChildCare costs.

There are a number of entitlement calculators out there but I recommend using the HMRC website for best results.

Hope this helps.

karenx

You will get help with your childcare costs untill september when you stop working,then you wont get working tax credits or help with the childcare costs.

chudleyette

Have just discovered the Childcare Grant which may help pay childcare costs whilst I am a student, and that I may be entitled to Income Support and the Parents' Learning Allowance. Looks like these are all means-tested.

More info on Direct.gov http://www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/StudentFinance/Extrahelp/DG_171503

Hope this helps any other parents thinking of going back to study.

karenx

are you a single parent? If not you won't get income support

simone2109

Also if you are getting certain student grants/loans you wont get income support!

Best thing to do is ring and get all the info in advance to plan x

nannytone_2

also if a grant/loan is available to you and you choose not to take it, you will be assessed as if you 'have' that grant/loan, for any income based benefit.