Which benefit should I claim?

MegInAMuddle

Hi,

I'm a newbie so please be kind.

Just wondered if you guys could give me some advice.

Background: My relationship has broken down due to stress and debt issues and I am moving out of my privately rented house at the end of next month and in with my parents so that I can start saving for bankruptcy. I have one son and it'll be a squash as we'll be sharing a tiny single bedroom. It's just a temporary solution though.

Anyway, I work self-employed as a writer and usually make around £3,000 pa. I would be entitled to IS at £101 a week if I say that I work less than 15 hours a week. However, it's pretty variable how many hours I actually do so if I say that I am doing 16 hours (which sometimes I do) then I can claim working tax credit and child tax credit to around £148 a month. It seems crazy that I get almost £50 a week more for working an extra hour and I'm not sure if I should claim this.

Part of me feels like I would be "cheating" the system but I am being truthful and sometimes I do work this many hours. So, which would you claim?

Sorry, if I'm waffling but I've never claimed a substancial amount of benefit before and don't want to get into trouble as I am at rock bottom with debts etc.

Meg

Indie_Kid

You'd only get IS at £65.45 per week (plus benefits for the child), if you're working less than 16 hours per week. Do the hours you do include accounts?

MegInAMuddle

Sorry, I meant including child benefit. It was the result on entitled to so it might have included other allowances too but not including my £3,000. (Hope I haven't made this more confusing now! Sorry.)

MegInAMuddle

So, it's £54.67 child tax credits and £27.92 on IS (according to turn2us) if I work 15 hours or
Or £54.67 child tax credits and £73.15 if I work 16 hours. (plus child benefit and council tax benefit). Does this sound right, if the difference is only 1 hour of work a week?

Meg

Indie_Kid

If you work 16 hours a week, you'd get working tax credits.

cassieB57

You can claim IS as a lone parent if your child is under 10 (7 from october) and if you work under 16 hours a week ON AVERAGE. If there is no set pattern of hours, then the last 5 weeks would be averaged. If you work 16 or more hours it would be WTC and CTC. For IS the first £20 a week of your earnings is ignored

Lon_Coed

If you are self employed and claim I.S then you would have to submit your accounts for a decision maker to look at them to determine what hours you are working at what earnings should be taken into account.. This would be done before the claim can be processed.. They would need to see your accounts at three, six or twelve months intervals depending on how your earning and hours fluctuate

MegInAMuddle

Thank you for your help. It seems that the CTC and TC route is very complicated. Bit worried as I won't have too long to sort it out so maybe I'm best to claim IS.