Salary change from 24k to 10k - confused on benefits

sydneybean

Am hoping someone will be able to answer some queries that i have around benefits.

my current situation is that it is looking like from next month i will be doing a different job with my employer and my salary will reduce from 24k full time to around 10k at 30hrs. I have spoken to WFTC who gave me a rough estimate of my wftc going from £9 per week now to possibly around £50 a week.

I have then gone onto my local council website that tells me i could be eligible for council tax benefit of £17 a week.

so far so good - yes i am going to be a lot worse off financially but i can manage (at a push and by using the old style thread:))

however - i have been looking at the government info on tax credits and reading a few other posts on here and now have some questions that i am hoping you fine people will know the answers to!

1. last year i earned £23k and my weekly credits are now £9.36 a week - having looked at the gov info i cant seem to work out how i can only be getting this much - the lone parent payment alone is £1950 a year?

2. I have read on another post on here that if i have equity in my property of over 16k then i wouldnt be eligible for council tax benefit - is this right?

3. If i know what i will earn next year can i ask the WFTC to take this into account when they re-do my benefits next April? I feel that i would need to do this as my salary will drop from 24k to 10k.

these are the questions that are giving me a headache so far so would really appreciate any advice

Caz3121

sydneybean wrote: »

Am hoping someone will be able to answer some queries that i have around benefits.

my current situation is that it is looking like from next month i will be doing a different job with my employer and my salary will reduce from 24k full time to around 10k at 30hrs. I have spoken to WFTC who gave me a rough estimate of my wftc going from £9 per week now to possibly around £50 a week.

I have then gone onto my local council website that tells me i could be eligible for council tax benefit of £17 a week.

so far so good - yes i am going to be a lot worse off financially but i can manage (at a push and by using the old style thread:))

however - i have been looking at the government info on tax credits and reading a few other posts on here and now have some questions that i am hoping you fine people will know the answers to!

1. last year i earned £23k and my weekly credits are now £9.36 a week - having looked at the gov info i cant seem to work out how i can only be getting this much - the lone parent payment alone is £1950 a year?

2. I have read on another post on here that if i have equity in my property of over 16k then i wouldnt be eligible for council tax benefit - is this right?

3. If i know what i will earn next year can i ask the WFTC to take this into account when they re-do my benefits next April? I feel that i would need to do this as my salary will drop from 24k to 10k.

these are the questions that are giving me a headache so far so would really appreciate any advice

1 - The tables are here http://www.hmrc.gov.uk/taxcredits/people-advise-others/entitlement-tables/work-and-child/work-no-childcosts.htm I am assuming you have 1 child so that looks about correct. - the elements are reduced by your income

2 - property equity in your own home has no effect on means tested benefits (it would if it was a second home)

3- If you are changing your hours from next month your income for this year will be 8 months @ £24k salary and 4 month @ £10k salary. They will base your award next year on your total income from this year but then you can contact them after they issue the award and ask them to change it to your new estimate...note if they do this there will be no £10k disregard so if you do any additional hours/get a pay rise, you will have an overpayment
You can advise them of your change this year too (your new total income will likely be around £19-20k rather than 24k) Not sure if they will increase it now or whether you would get a lump sum at the end of the year

keith1950

. last year i earned £23k and my weekly credits are now £9.36 a week - having looked at the gov info i cant seem to work out how i can only be getting this much - the lone parent payment alone is £1950 a year?

I was under the impression that the bulk of this years award was based on last years income.

So next years award will be higher because of your reduced income this year even if your income goes backup next year.

Have you tried www.entitledto.com ?

sydneybean

hi,
many thanks for the quick replies! i have dragged out my wftc paperwork and it looks like the reason i dont get the lone parent element is because of what my salary has previously been as the full amount for working tax credit elements are reduced to nil due to my income.

i presume that will be relooked at if i am only working 30hrs a week.

so next question having looked at the paperwork if i worked 29hours rather than 30 does that mean i would get a higher rate?

it seems silly for an extra hour?

have always worked since i left school and really never wanted to do the whole benefits thing although i have relied massively on wftc and i dont really want to do the whole council tax benefit thing either but i figure i have paid my taxes for the last 22years so i should take it:think:

salau2

If you work 30 hours then a 30 hour element is added to your Tax Credit applicable amount - £790. You can apply for council tax benefit and if you are the only adult in the house there should be a 25% single person discount straight away.