Working tax credit

crazycurls

My son has been ill for a number of years and has been receiving the highest rate of incapacity benefit. Last year he began to improve and against all expectation in October was able to start full time work.

The DWP sent him a form inviting him to apply for working tax credit. They then said as he was to be earning £13500 per year he would qualify until the end of the tax year.

My daughter was furious as she earns less and qualifies for nothing. I imagine this is because the govt want to encourage people off benefits and back to work.

Anyway he is now doing very well and with overtime and anticipated bonuses may well earn about £10000 by the end of the tax year which even with the IB he had up to October will still be well below the £15000 limit but most of it will have been in 6 months.

Does anyone know if it is this annual figure that counts or do they look at it monthly. Obviously if he does do as well as it seems he might he will not claim next year.

I am just worried he may be asked to pay it back and will have spent it.

Hammyman

He gets WTC because he most likely has an additional £5000 "income disregard" added for the disability component of WTC. So for example if someone would be exempted completely from WTC because they earned £12000, someone with the disability component has that raised to £17,000.

Indie_Kid

crazycurls wrote: »

My daughter was furious as she earns less and qualifies for nothing.

A non-disabled person can generally work more hours than a disabled person.

no-oneknowsme

You dont say what age your Daughter is .

If the Daughter is under 25 and no children etc then surely she wouldnt quailfy for tax credits ?

Am i wrong ?

Indie_Kid

no-oneknowsme wrote: »

You dont say what age your Daughter is .

If the Daughter is under 25 and no children etc then surely she wouldnt quailfy for tax credits ?

Am i wrong ?

That's right. You either need to be 16, work 16 hours or more a week and be either disabled or responsible for a child for whom you receive child benefit for, or be over 25 and work 30 hours or more a week.

no-oneknowsme

sh1305 wrote: »

That's right. You either need to be 16, work 16 hours or more a week and be either disabled or responsible for a child for whom you receive child benefit for, or be over 25 and work 30 hours or more a week.

Thanks sh1305 .

I didnt think under 25's could receive tax credits. Maybe this is why the OP's Daughter is not entitled.

crazycurls

Thanks for replies.:) Would however still like to know if earnings is an annual figure or monthly. Does anyone know?