JSA and Tax Credits

dinoswife

Hi there, I was laid off from work at the start of August and have been looking for a job since without any luck. I have not claimed JSA though I'm fairly sure I would be eligible for contribution based JSA as I have worked full time for the last 15 years.

I have three small children, my husband works full time and we receive Child Tax Credits of approx £350 per month (joint claim). What I'm wondering is if I did apply for JSA would the amount I get just be deducted off the tax credits I currently receive, leaving me no better off financially. Then there is national insurance, as I am currently at home caring for my children I assume I get some sort of NI credit, would I get anything better/different if I was on JSA. Is there any point claiming JSA, would I be just as well to continue as I am claiming CTC and just looking for work?

Sorry for all the questions but the benefit system really confuses me!

HappyMJ

You need to have worked at least part time earning enough to pay tax for the last 2 tax years. As you say you have worked for 15 years yet contradict yourself by also saying you are at home looking after 3 small children I'm not sure if that includes the last 2 years or not. You can claim CB JSA if you qualify and are looking for work and available to start immediately although they do allow a day or so to arrange childcare. It does affect your CTC claim but as you say you have worked it should increase it. If you haven't earnt too much last year but still qualify for CB JSA then it may reduce next years claim by 41% of whatever you get. So you can claim £1,755 and it may reduce your CTC by £719.55.

I'd claim it but it's up to you. Depends on how much work you want to put into looking for work and signing on for an extra £67.50 per week. You will get the same NI credits as you do now so there is no difference there and no need to continue claiming IB JSA after the 6 months are up.

dinoswife

Thanks for your reply.

Sorry I probably didn't explain properly in my original post but I had worked continually for the past 15 years up until August with the exception of ordinary maternity leave for my children. When I was working our combined incomes meant we did not receive any tax credit payments but we did qualify for help with childcare payments.

HappyMJ

dinoswife wrote: »

Thanks for your reply.

Sorry I probably didn't explain properly in my original post but I had worked continually for the past 15 years up until August with the exception of ordinary maternity leave for my children. When I was working our combined incomes meant we did not receive any tax credit payments but we did qualify for help with childcare payments.

Then you can claim as you have worked the last 2 tax years. You'll need to justify why you left in August and may be queried on that.