Working Tax Credit ( cash in hand job )

jimsta

Hello There Fellow MSE members,
Just like to hear some of your sound advise on this little subject.
My wife ( seperated now but are getting back together ) Phoned me saying she went to Job Centre Plus, they told her to claim working tax credit and to say she works 16 hours a week, My wife did say she does work 16 hours a week but it's cash in hand and told that was OK.
Now i said to my Wife surely that can not be right as cash in hand means your not paying any tax plus it's against the law, maybe there was a bit of understanding here as the person from Job Centre might of thought getting paid cash in hand but still paying tax.
Some Info on my wife, She is 24 and has a 7 year old daughter and started to claim working tax credit 3 months ago.
So please anybody can show me some light on what to do now, Is this still above board or does she contact them and tell them the mistake.
Thanks for your time.
Jim.

Robbie64

If she's working 16 hours a week then she can't claim JSA.

Her only option if she wishes to claim is to claim Working Tax Credit. If she's paid wages cash in hand it shouldn't stop her getting WTC.

Gemmzie

Cash in hand sounds like the job is illegal. She will only get Working Tax Credits if she registers as self-employed and puts the cash payments through that.

toonbaz

yeah it sounds like registering self employed may be the best option as not declaring income from cash in hand jobs is illegal. she may not need to pay tax anyway as she might be below the tax threshold if only working 16 hrs per wk.
also you mentioned you were getting back together, tax credits will take into account both incomes if you moe back in so that may rule out working tax credit again.

alwaysonthego_2

As above, but depending on your income and if you work 16 or more hours you could claim WTC without your wife having to work.