Working Tax Credits

omen666

Situation:

My uncle has been on Incapacity benefit since approx 2003 after havinga breakdown and turning to drugs after the death of his wife. He has kicked this and sought medical help and has now secured full-time employment. He and I have both been on the directgov working tax entitlement questionaire but we dont get a couple of the questions and what the answers should be in working out tax paid and earnings and stuff. He is wondering the follwing:

1) Is he entitled to working tax credits
2) How much roughly per week is he entitled to and for how long?

Circs:

Benefit:
Incapacity Long Term since 2004
Paid £210 per fortnight for as long as he can remember
Dependants: 0
Single
No savings or other income

Employment:
approx 35 hours per week
£18,000 per annum before tax
starting 7th March 2011
Age: 34

Thanks as always peeps

Jowo_2

For a single person, they are required to work 30 hours per week to be eligible. If they live alone they will get a 25% discount on their CT (single person discount) and could perhaps qualify for some LHA if they are a private tenant in a high rent area.

Get him to double check his overall entitlements on the Turn2us online benefit calculator. The HMRC site also has a wizard for tax credits on its site.

http://taxcredits.hmrc.gov.uk/Qualify/WhatAreTaxCredits.aspx

http://taxcredits.hmrc.gov.uk/Qualify/DIQHousehold.aspx

omen666

Jowo wrote: »

For a single person, they are required to work 30 hours per week to be eligible. If they live alone they will get a 25% discount on their CT (single person discount) and could perhaps qualify for some LHA if they are a private tenant in a high rent area.

Get him to double check his overall entitlements on the Turn2us online benefit calculator. The HMRC site also has a wizard for tax credits on its site.

http://taxcredits.hmrc.gov.uk/Qualify/WhatAreTaxCredits.aspx

http://taxcredits.hmrc.gov.uk/Qualify/DIQHousehold.aspx

Thanks Jowo, thats the site we checked last night but cant get our head around whether they want to know how much tax he paid on IBLT or whether they need to put in 26 weeks x £210.00 = 5460 and you enter £5460.

He is currently fat sharing so the CT and LHA is not applicable in this instance as this is covered

MrsBartolozzi

Did he pay any tax on his IBLT?
£5460 is below the income tax threshold so he shouldn't have paid tax on it anyway.

omen666

I dont believe he did he wouldnt would he MrsBartolozzi? I am not really au fait with benefits.

50Twuncle

Jowo wrote: »

For a single person, they are required to work 30 hours per week to be eligible. If they live alone they will get a 25% discount on their CT (single person discount) and could perhaps qualify for some LHA if they are a private tenant in a high rent area.

Get him to double check his overall entitlements on the Turn2us online benefit calculator. The HMRC site also has a wizard for tax credits on its site.

http://taxcredits.hmrc.gov.uk/Qualify/WhatAreTaxCredits.aspx

http://taxcredits.hmrc.gov.uk/Qualify/DIQHousehold.aspx

I am confused as to how he manages to claim ICB as well as working full time -earning £18000 pa
Perhaps you made a mistake in saying "No savings or other income" - then going on to tell us about his £18000 other income ?
Or do you mean - he is coming off ICB and will be earning £18000 ?
If this is the case - unfortunately his WTC will be rated as zero - since they look at his previous tax years income and compare it to his new income and this will mean no WTC !!

omen666

Sorry should have clarified.

He has come off of IB Long Term as he starts on the 7th March. They are going to pay all monies owing on IB up until the 6th March.

He was at a "Reed in Partnership" yesterday in order to close the claim down. They informed him of the Working Tax Credits but using the HMRC site last night neither he nor I could work it out in terms of what to put in what box.

Therefore he will be totally off of IB Long Term on the 6th March and starting the new role on the 7th. Will he be entitled to WTC bearing in mind he was classed as disabled on IBLT if so does the amount he will be earning have a effect on entitlement? The Reed people yesterday he says didnt explain it all really to him. He said it was unbelievably hard to sign off believe it or not and Reed just had him in and out with no real assistance, he siad the lady mentioned she was on half day and his appointment was at midday so was practically shoved out

50Twuncle

I suggest that you visit your local CAB - They have years of experience in filling in WTC forms and will do the work for you

omen666

There isnt an issue in filling out the form, its inputting the correct data into their "Do you qualify" online form.

He would like to know as he can work out his total income spends for the month and know whats what.

calleyw

don't forget that at 18K in april 2012 he will not get any WTC.

He will only get it this time around because it is based on the previous tax year income.

I earn less than your uncle and have a disabled husband suppose to qualify but never claim.

Is your uncle claiming DLA if not then it seems he will not be entitled to tax credits for being disabled.

Yours

Calley

omen666

Thanks for that Calley.

So are you saying ina nutshell he will be able to claima nd will be succesful based obviously on the information I have provided thus far?

This is a big step for him as it is a "new start" he has spent years with no family contact and homeless until I got him into a flat share, the extra money would assist him greatly. I understand out there there are people far worse off than him and earning less. We just want the full picture really. He is very anxious about a lot of things and getting these little things "resolved to a degree" really puts his mind at rest


Also as he is starting the beginning of March will he be entitled from April 2011 as this will be the new tax year?