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Working Tax Credits
Comments
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Also as he is starting the beginning of March will he be entitled from April 2011 as this will be the new tax year?
I believe so.
But I get a feeling that it will not be a lot he will get.
Youe uncle will be getting £1350 a month after tax with his new job.
The problem is if your uncle claims tax credits then your uncle is going to get a bit of shock in april 2012 as he will no longer qualify. And then will have to adjust to not having the extra.
Yours
CalleyHope for everything and expect nothing!!!
Good enough is almost always good enough -Prof Barry Schwartz
If it scares you, it might be a good thing to try -Seth Godin0 -
We worked it out at £1125 per month after tax for 18k per year. I think my uncle would have adjusted by then. Just gives him time to pay some people back and then move into a place of his own and continue on in life.I believe so.
But I get a feeling that it will not be a lot he will get.
Youe uncle will be getting £1350 a month after tax with his new job.
The problem is if your uncle claims tax credits then your uncle is going to get a bit of shock in april 2012 as he will no longer qualify. And then will have to adjust to not having the extra.
Yours
Calley0 -
We worked it out at £1125 per month after tax for 18k per year. I think my uncle would have adjusted by then. Just gives him time to pay some people back and then move into a place of his own and continue on in life.
I got my calucation from here
Yours
CalleyHope for everything and expect nothing!!!
Good enough is almost always good enough -Prof Barry Schwartz
If it scares you, it might be a good thing to try -Seth Godin0 -
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
You dont necessarily need to be recieving DLA to get the disability element of WTC, OP as your uncle was on long term incapacity Benifit and now going into employment he may qualify, he can put his request through to the tax credit office and they will decide if he qualifies. I dont have it to hand right now but in the guidence notes for filling out the application form the last few pages have the checklist for whether you could be entitled to the disability element, but ultimately its up to TCO.0 -
Have I missed something? Where does the question of disability come into it?0
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You can get disabled tax credits if unable to work for so many days and have been on the appropriate benefit I believe, if the job is over 16 hours a week.0
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If he qualifies for the disability element of WTC, is working over 30hpw he will still be entitled to WTC when his £18k income is taken into consideration, thats where disability comes into it, he may very well qualify for the disability element as he has been on LTIB for more than 6 months prior to starting work.0
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As long as he has claimed LTIB for 182 days he will qualify for the disability element, is your uncle over the age of 50, if so he will receive the over 50's element too, payable for 12 months.
If his first pay slip shows tax deducted he will be able to claim most, if not all of this back as he won't of earned his full personal allowance (£6475).
Based on what you say his earnings will have been £1500 income and £5100 approx so no tax payable, keep an eye on that, he may need to request a refund if it doesn't automatically adjust.
If over 50 he could be entitled up to £139 per week WTC, if not £101 with his diability premium but only until beginning of April..
This will be reduced tax year on tax year starting in April as income used will be approx £6600 which is a little over the first threshold but due to income being £18000 and above the new threshold disregard 11/12 tax year's award will be greatly affected by new threshold rates with the disregard being reduced from £25000 to £10000 (not quite sure how this is going to work as of yet, others may shed light on this) and in 12/13 WTC it will be greatly reduced due to his full yearly earnings being assessed.
He may get free dental/prescriptions and ask his disability adviser for assistance with clothes and travel pass for work.
There are many org's that pay a bonus for getting back into work from long term disability, ask his disability adviser at JCP.
There is a back to work bonus (£40 and £60 for London residents) for disabled persons but i feel his income is over the yearly threshold of £15000, once again ask his adviser.
Wish your uncle good luck from us allForums can be/are a good guide to entitlement and it is good practice to back it up with clarification from the relevant department/specialist with written confirmation to safeguard yourself.0 -
Appreciate all the comments and advice.
Just to clarify he is in his late 30's and has been on IBLT since approx 200late 2003 early 2004 so has been on disability longer than 182 days but does not claim DLA at any level.0 -
You dont necessarily need to be recieving DLA to get the disability element of WTC, OP as your uncle was on long term incapacity Benifit and now going into employment he may qualify,
I have a feeling correct me if I am wrong. That applies only for the 1st claim of Tax credits.
And the next year if not claiming DLA you will not get it on grounds of disability as a year has elapsed since claiming that benefit.
Yours
CalleyHope for everything and expect nothing!!!
Good enough is almost always good enough -Prof Barry Schwartz
If it scares you, it might be a good thing to try -Seth Godin0
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