Child Tax Credit - Do we tell them about this?

billykeats

My wife is currently on maternity leave with our first child until 10 December. She was made redundant due to work not being able to place her in a suitable position but are obliged to pay her maternity pay. We have just informed the Tax Credit department that our earnings for this year have therefore been reduced compared to last year and they approved Child Tax Credits for around £11 a week.

So as of the 10 December she is unemployed and will be looking to claim Job Seekers Allowance (Contribution Based - as she has worked full time for the last 12 years). Does she need to inform the Tax Credits of this income? Even with this £67.50 a week it will not take us over the £40k threshold but will it affect the amount of Child Tax Credits we receive.

Also we have a Redundancy insurance in place that once my wife starts to claim Job Seekers we will also receive £490 a month towards the mortgage. Do we need to inform the Tax Credits of this income? Is this insurance classed as an income or a payout to warrant telling the Tax credit people

I know Martin Lewis says we must tell them, Tell Them, TELL THEM! But it is hard to know what we need to tell them. Can anyone help?

LL30

I'm not sure on the above, but did you take into account the £100 p/wk disregard for SMP to work out her earnings for TC purposes? Apologies if you did, I just know so many people that are/were unaware and missed out on pennies because of it. Sure someone else will pop along with more facts re the above

billykeats

Yes the SMP was taken into account accordingly with the Tax Credits. Thanks thou

zagfles

Contribution based JSA counts as income for tax credits, the insurance payout almost certainly not. If you're only getting the family element of £545 a year and your income remains below £40k then it won't affect your tax credits this year BUT it will affect them next year, as the £40k "second" threshold is being removed.

So best to tell them otherwise you may get overpayments from April next year. But you could wait till nearer then say Feb/March when you have a better idea what your annual income is likely to be.

billykeats

What is happening to the threshold for Child Tax Credits come next year? Will this mean the goalposts are moved again just as we qualify for it

zagfles

billykeats wrote: »

What is happening to the threshold for Child Tax Credits come next year? Will this mean the goalposts are moved again just as we qualify for it

Probably, if you're only getting the family element. As there'll be no separate threshold for it. With one child, no childcare, no disabilities the income limit will be about £26k next year.

billykeats

So as I will be he sole earner in the household with a salary of £30K, we will not be entitled to nothing!

Story of our lives this is. Bought our first house had to pay stamp duty only for the government to scrap it for FTBs just 3 months after we complete. Buy a new car & they then bring the scrappage scheme which meant we could have got £1000 instead of the £200 we got for my old car. Our first child is born just after they scrap the £250 Child Trust Fund money. No this

We have both worked all our lives and asked for nothing yet when we look for a little bit of help we get shafted again and again and again! Yet people who sit on their !!!!!! get given out handouts left right and centre

mildred1978

billykeats wrote: »

We have both worked all our lives and asked for nothing yet when we look for a little bit of help we get shafted again and again and again! Yet people who sit on their !!!!!! get given out handouts left right and centre

Ah, this old chestnut. A) all your lives? Seriously? you've received 2x education, 2x healthcare, you've been able to use roads and libraries and public parks. Your children will receive all of this too. C) you don't get "nothing". You get all of the above plus £20-something a week child benefit.

Your wife was planning on returning to work. As she's fit and able, and you don't think you should be solely responsible for her choosing to stay home, she could always get a job.

mildred1978

Actually, reading some of your previous posts, your wife planned to be off and got a £25k redundancy payout. Can't you live off that?

bobajob_1966

mildred1978 wrote: »

Actually, reading some of your previous posts, your wife planned to be off and got a £25k redundancy payout. Can't you live off that?

That would appear to be a constructive solution to the OP's short term money concerns.

mildred1978

Not to mention the £300 per month you're now saving on your mortgage (so that's the equivalent of a £5.3k pay rise) and the £67 jSA your wife will be claiming. Hopefully that will also result in a job.