Working Tax Credit Questions

Tangled

Hi

I have some questions of tax credits which I hope someone may be able to answer. I've scoured the internet for a couple of hours and been through a heavy, in depth, rigourous analysis of tax credits but haven't got any definite answers.

1. If you makes a succesfull application for WTC mid way through the financial year, are you then paid your full tax credit entitlement for the year during the remainder of the tax year? e.g If your entitlement to tax credits for the financial year is worked out at £5200 ( by adding up all elements ( yearly amounts ) and subtracting your tapered excess income ) and you start receiving WTC 10 weeks before April 2011, will you receive £520 per week till April or £100 a week ( £5200 / 52 weeks ) ?


2. If you qualify for the disability element because you meet the critera of being at a disadvantage of getting a job and that you were receiving Income Support ( on the grounds of being incapable for work ) for at least 20 weeks in the last 8 weeks before the WTC payments commenced ( but are not receiving any "qualifiying benefits" ( e.g DLA ) while receiving WTC ) , then is it the case that on reapplying for WTC ( at the start of a new tax year ), the fact you have already receieved the disability element of WTC will not excuse you from having to satisfy the "qualifying benefit" test if you wish to receive the disability element again?
Further to this, if you apply very late in the tax year and receive the disability element on the grounds mentioned above and you are still within the 8 week cut off at the start of the new tax year, then I am assuming this will not presesent problems and you will be eligible for the disability element for the next Tax year?

Thanks very much to anyone who may be able to answer, I've tried to word the questions clearly.

Hammyman

1) Yes. You would receive a lump sum then monthly payments at the proper rate. In the example you posted you would receive £4200 as a lump sum then four weekly (4 weeks, not per week) payments of £400.

2) You don't need to be getting a disability specific benefit to qualify for the disability component. You will however need to provide medical proof from your doctor or specialist.

lauzellen

Hammyman Regarding point 1 in your post...

Are you sure this is correct? I was under the impression that you only get awarded for the time period that is relevant... so the award has to be divided by the number of days in the year and multiplied by the number of qualifying days to calculate the entitlement for the time period which is then paid weekly.

stu12345_2

i believe ur wrong hammyman ive just made a claim,had many claims before in past, i asked same question, got told you get what the remainder of the year is. eg 10 weeks at £100.
so if u were on dole for 10 months, landed a job in final 2 months, worked out total estiamted income, eg say£8000 that included jsa money,youd think youd get big tax credit till april. wrong.
but if u were in a low job for the prior 10 months, not on dole made a claim 10 months ago, estimated income to be £8000 for the yr, youd get £100 a week for 52 weeks.

Despite the same total earnings, it is only paid prorata for the weeks you made a claim.

zagfles

Yes the last two posts are right - they don't backdate your claim to the start of the year - they can backdate it for a certain time (3 months I think?) if you were eligible then.

Tangled

Thanks to everyone who replied.

After ringing up HMRC and talking to a few people who should know this sort of thing, it does seem to be the case that it is paid on the basis of (annual entitlement/52 ) per week for the duration of the tax year, if starting mid way through.

As to my point number 2, the regulations state

You will be treated as qualifying for the disability element if, within the eight weeks before you make your claim ( including renewal claims ), you were entitled to the disability element of tax credits by virtue of condition A, B, E or F. This allows those are were getting a qualifying benefit, such as ESA, to continue to get the WTC disability element for long after they stopped receiving that benefit.

Conditions a, b, e and f being conditions which relate to being on IS, IB, ESA for a period before you make your claim.
This suggests that as long as one continues to satisfy the "disability test", one can continue to receive the diability element of WTC indefintitely