Are we still eligable for WTC? *confused*

jp83_2

Hi, I am hoping some of you lovely people could afford some advice for our current situation...

Last year, my partner and I received approx £150 per 4 weeks WTC based on just my partner earning approx £13500 (for a 36hr week).

This year I anticipate myself earning (in addition to my partner) around £9000 for the tax year (part time)

I assumed this would make us ineligable for tax credits due to joint earnings. However I phoned WTC last week who said we were still entitled to approx the same WTC payments this year based on last years earnings? (despite telling them of my estimated earnings for 2011-2012).

I am concerned that at the end of this tax year that they will calculate our income and find we have been
overpaid?

I am finding the whole process somewhat confusing and I am looking for some clarification as to whether or not we are entitled to WTC this year or not (based on last years income)

To complicate things further I will be a full time mature student in Sept (undergraduate) but will still earn approx 9k for this tax year.

Any advice would be much appreciated!

Tigsteroonie

I don't have an answer for you but I have a very similar question! Last year our income was about £10,000 as I only started work partway through the year - I advised TC at the time, and we were awarded WTC based on the current income. This year I anticipate working all year and so our income rises to £18000.

If they base this year's TC award on last year's earnings, will it result in an overpayment?

beansy

Hi

This is very confusing and I am trying to find out similar info on behalf of my son.

He started work at the beginning of Oct last yr and received £52 pw WTC payment. Calculated on a full yrs wage on the HMRC calculator, it looks like he is unlikely to receive anything!

He is earning £222 pw before tax and is paying £410 pm rent, £66 pm CT, he had to make an arrangement with the bank to pay off his student overdraft which was based on his income incl WTC @ £105 pm, £48 pm Water that's before food, bus fare to work, gas & elec.

He was on a joint tenancy but the other tenant went bankrupt last Nov and had to move out, he has tried to get someone to take it over but most of the people he knows are self employed and struggling to get a regular income.

If he is not eligible for WTC, is there anything else he can claim?

The reason I am following this up is because he is quite depressed as he was so pleased to be back in work but really struggling to make ends meet, so you can imagine what this will mean when he realises he is likely to be even worse off!

Would you suggest he contacts his bank and advises them of his change in circumstances to reduce the amount agreed, or seeks independent advice first? The arrangement was only set up in April.

Sorry, this is a long winded post and would appreciate any advice please.

pipscot

jp83 wrote: »

Hi, I am hoping some of you lovely people could afford some advice for our current situation...

Last year, my partner and I received approx £150 per 4 weeks WTC based on just my partner earning approx £13500 (for a 36hr week).

This year I anticipate myself earning (in addition to my partner) around £9000 for the tax year (part time)

I assumed this would make us ineligable for tax credits due to joint earnings. However I phoned WTC last week who said we were still entitled to approx the same WTC payments this year based on last years earnings? (despite telling them of my estimated earnings for 2011-2012).

I am concerned that at the end of this tax year that they will calculate our income and find we have been
overpaid?

I am finding the whole process somewhat confusing and I am looking for some clarification as to whether or not we are entitled to WTC this year or not (based on last years income)

To complicate things further I will be a full time mature student in Sept (undergraduate) but will still earn approx 9k for this tax year.

Any advice would be much appreciated!

Tax credits office was correct in saying that your wtc will be paid for this year based on last years - 2010/2011 earnings. This is fine and doesn't lead to overpayments (unless you earn over £10,000 more in 2011/2012 than 2010/2011).

As a student, your maintenance grants etc do not usually count as income for tax credits BUT any adult dependents grant you receive DOES count as income. [If you end up applying for housing benefit/council tax benefit, maintenance grants and loans are applied differently and DO count as income]

If you leave work in September to become a student - you may find you have overpaid in tax for 2011/2012 so remember to check if you are eligible for a tax refund at the time. You also need to ring Tax Credits with a change of circumstance when you become a student.

If your OH is the only adult in the household, you should also get a 25% discount on council tax from September.

pipscot

Tigsteroonie wrote: »

I don't have an answer for you but I have a very similar question! Last year our income was about £10,000 as I only started work partway through the year - I advised TC at the time, and we were awarded WTC based on the current income. This year I anticipate working all year and so our income rises to £18000.

If they base this year's TC award on last year's earnings, will it result in an overpayment?

This year's TC award will be based on last year's earnings and should not result in an overpayment (unless you earn over £10,000 more than the previous year).

pipscot

beansy wrote: »

Hi

This is very confusing and I am trying to find out similar info on behalf of my son.

He started work at the beginning of Oct last yr and received £52 pw WTC payment. Calculated on a full yrs wage on the HMRC calculator, it looks like he is unlikely to receive anything!

He is earning £222 pw before tax and is paying £410 pm rent, £66 pm CT, he had to make an arrangement with the bank to pay off his student overdraft which was based on his income incl WTC @ £105 pm, £48 pm Water that's before food, bus fare to work, gas & elec.

He was on a joint tenancy but the other tenant went bankrupt last Nov and had to move out, he has tried to get someone to take it over but most of the people he knows are self employed and struggling to get a regular income.

If he is not eligible for WTC, is there anything else he can claim?

The reason I am following this up is because he is quite depressed as he was so pleased to be back in work but really struggling to make ends meet, so you can imagine what this will mean when he realises he is likely to be even worse off!

Would you suggest he contacts his bank and advises them of his change in circumstances to reduce the amount agreed, or seeks independent advice first? The arrangement was only set up in April.

Sorry, this is a long winded post and would appreciate any advice please.

His wtc may not go down as much as you think due to being based on the previous year's income. If you try https://www.entitledto.co.uk to calculate the wtc, it allows you to put in both last year's actual income and this year's estimated income to come up with an estimate for wtc.

He could also look at applying for LHA (housing benefit) and council tax benefit but I am not sure of the rules for those - sure someone else will come along soon and advise on that.

If he can't afford his repayments - I would advise speaking to the bank and trying to have his repayments reduced but you might want to check his actual wtc entitlements first.

beansy

pipscot wrote: »

His wtc may not go down as much as you think due to being based on the previous year's income. If you try www.entitledto.co.uk to calculate the wtc, it allows you to put in both last year's actual income and this year's estimated income to come up with an estimate for wtc.

He could also look at applying for LHA (housing benefit) and council tax benefit but I am not sure of the rules for those - sure someone else will come along soon and advise on that.

If he can't afford his repayments - I would advise speaking to the bank and trying to have his repayments reduced but you might want to check his actual wtc entitlements first.

Thank you for your prompt and helpful reply.

I will have a look and once I have a likely accurate figure discuss it with him and suggest he contacts the bank as they did say to let them know if pay goes up or down.

Kind regards