Tax credits - hours of work inconsistencies

LL30

Officially on IS now as officially redundant...boo! I'm on the case though and have applied for a few jobs which are nil hour contracts (boo again, but provide flexibility to combat my childcare issues, yay!). So, I've cancelled my working tax credits claim, and whilst I was on the phone I asked the lady to clarify how working tax credits would work if I were to take on a nil hour contract. She explained that as long as my hours were on average 16 hours per week, for the year, then I would be able to claim. So:

a) how on earth would I be able to know that I would be able to average 16 hours a week (obviously I'll be speaking to employers about this, but I'm still perplexed as to how I could ensure that this was the case) and

b) my friend works a term time only contract at 20 hours a week. Her hours average 11.5 hours per week over the year and she's eligible. How does that work? Seems incredibly inconsistent to me.

The great news is that I discussed my childcare issues with the lone parent advisor today. I explained that I was concerned about being able to find a month's childcare fees (up to £800 IF I were to gain a FT position) upfront. She said that there is a fund that I could apply for to help with this - she said that if that was my only barrier to returning to work, it would be more than likely that I would get assistance! Yay! Ok, so it's not set in stone, but at least I know there are options for me. It was particularly heart warming after learning that I wasn't eligible for any other help, but if I stayed sat on my bum for 26 weeks, I'd get a £250 return to work bonus, and if I sat for a further 26 weeks, I'd get the £250 and an additional £40 a week for a year :eek: Completely shocked and dismayed tbh, I've paid £500+ a month in tax for years (except for the last 18 months due to maternity) and I'm getting £67 a week. I'm grateful, don't get me wrong, but why oh why are they throwing money at people in this way? I honestly do not understand the logic. I'm about to be penalised for using my childcare money from tax credits to pay for childcare (shock horror) by housing benefit, as I get 4 weeks run on, she's staying in childcare for those 4 weeks. HB disagree, and state that because I'm unemployed, she shouldn't go to nursery, and I should pocket the money so they can then take it into account for HB purposes. So I'm going to get into rent arrears...but if I was returning to work, I'd get 4 weeks HB run on....oh it all seems nuts...!

Sorry turned into a mini rant/complete confusion there! If anyone can explain any of the above points (a and b, feel free to kick my behind over the other ramble) I'd be most grateful!

karenx

As weird as it is yes its correct any childcare costs wont be taken into account for HB as soon as you stop working. As yes its a run on, according to housing benefits you arent working so no reason to pay for childcare. So that money is income.

LL30

It's all so logical...particularly when you have to give 4 weeks notice to take your child out of childcare! Ah, I'm loving the system! Here's praying I land something soon!!

ManicMum

I have got a new zero hours job. At the moment I have just said I will do evenings and weekends when hubby can look after kids. What I need to know is, if I did some day shifts and needed childcare - could I claim for assistance if some of the 16 hours were made up of times when I had free childcare? Does that make sense? I am not meaning that to sound that I am looking for childcare payments when not needed but can I claim all hours towards the 16 and then claim just for the hours during the day?

It is very confusing.

LL30

It's a mare! You can claim for childcare as long as you're working 16 hours as a single parent - is it the same for joint claims? I don't know. Tax credits aren't bothered about when you put them in childcare, I could put her in all week, despite only having worked 2 days, and claim for help with all five days - but obviously a) that'd be stupid and b) I'd have to make up the difference! How's your nil hour contract working? Are you finding you're making up enough hours?