voluntary redundancy/severancy and claiming benefits

Mojisola

Get your union to talk you through it and then double-check the benefits side of things before deciding.

allen35

tcr wrote: »

DWP interest rate is 3.63%. So assuming the whole £66,000 was eligible for assistance, that'd bring you in £46.08 pw towards your mortgage interest through the DWP scheme.

It's paid 4 weekly in arrears, but the equivalent monthly DWP contribution would be £199.68 per calendar month.

Just to add this would be payable after the 13 week waiting period.

Do you have mortgage payment protection insurance (MPPI) as taking voluntary redundancy may affect your claim.

You would receive full council tax benefit, prescription and dental costs whilst on Income Support.

If there were any college courses you would find useful for your possible new challenge there will probably be concessions for benefit recipients.

If you inform HMRC of your COC and estimated income for 2011/12 you will probably receive extra child tax credits.

I recall this happening in a childrens centre i was associated to and they were advised by the union to sign as it is only to be considered for this extra payment but do take advice from your own union.

knithappens

allen35 wrote: »

- If you inform HMRC of your COC What does COC stand for - sorry I am no good with abbreviations

and estimated income for 2011/12 you will probably receive extra child tax credits. is this done when my last day of notice is up which would be 31st August

haha I am making notes as i go - ever the teacher

allen35

knithappens wrote: »

haha I am making notes as i go - ever the teacher

So you should, a bl...y minefield.

COC (Change Of Circumstances)

Have you got MPPI?

Yes to August, calculate your estimated income for 2011/12 up to August and declare this income as your 2011/12 earnings.

If you were planning to remain on Income Support(IS) until the following April 2012 whilst deciding what you're going to do, the income from IS is not counted for tax credit purposes so therefore in April you could calculate income from 5 months pay and inform tax credits this will be your income.

You may then (from April) be entitled to working tax credits as well as child tax credits until August.

I take it you receive child tax credits at the moment and 25% reduction in council tax if living alone.

allen35

allen35 wrote: »

If you were planning to remain on Income Support(IS) until the following April 2012 whilst deciding what you're going to do, the income from IS is not counted for tax credit purposes so therefore in April you could calculate income from 5 months pay and inform tax credits this will be your income.

You may then (from April) be entitled to working tax credits as well as child tax credits until August.

I take it you receive child tax credits at the moment and 25% reduction in council tax if living alone.

Sorry, if this is the case inform them in 3 weeks after April 6th and ask for an estimate of this years income to be used for your award.

knithappens

So you should, a bl...y minefield.

COC (Change Of Circumstances) Thank you

Have you got MPPI? No so my decision wont have an impact on this

Yes to August, calculate your estimated income for 2011/12 up to August and declare this income as your 2011/12 earnings.

If you were planning to remain on Income Support(IS) until the following April 2012 whilst deciding what you're going to do, the income from IS is not counted for tax credit purposes so therefore in April you could calculate income from 5 months pay and inform tax credits this will be your income.

You may then (from April) be entitled to working tax credits as well as child tax credits until August.
Thanks for this jotted it down in my note book ha ha

I take it you receive child tax credits at the moment and 25% reduction in council tax if living alone. I recieve child tax credit and the reduction in council tax

allen35

knithappens wrote: »

If you were planning to remain on Income Support(IS) until the following April 2012 whilst deciding what you're going to do, the income from IS is not counted for tax credit purposes so therefore in April you could calculate income from 5 months pay and inform tax credits this will be your income.

One more thing, if the above does apply you will be entitled to a tax refund, just that Income Support is a non taxable benefit.

In time and after august check your last pay slip/p45 and visit student checker on the HMRC website, this will give an estimate of how much.

Good luck.

knithappens

allen35 wrote: »

One more thing, if the above does apply you will be entitled to a tax refund, just that Income Support is a non taxable benefit.

In time and after august check your last pay slip/p45 and visit student checker on the HMRC website, this will give an estimate of how much.

Good luck.

Thank you so much for all the adivce,it is so much appreciated.

just one last question, if I am entitled to a tax refund will that be automtic at the end of the tax year or will I have to apply

allen35

If you decide on the Income Support and don't expect to work until after the next tax year once you've taken redundancy route you can reclaim after 4 weeks unemployment.

Your redundancy payment should be tax free.

You need to have your P45 from your employer and complete a P50 form from the HMRC website.

It is pretty straightforward and takes up to 4-6 weeks.

See link:

http://www.hmrc.gov.uk/incometax/stop-work-refund.htm

dodger1

Why not turn down the redundancy, if enough people take it you will still have your job. You say they are looking to make staff redundant but don't forget you may be one of those they are looking to keep even if not enough take the voluntary redundancy. Even if you want to make a career change it's easier if you're already employed so my advice would be stay there. When the cuts really hit in April I can see unemployment figures rising for some time before the country is really back on it's feet so try and keep what you've got.