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Tax credits stopping in April 2012

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  • zagfles
    zagfles Posts: 21,495 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    stjman wrote: »
    Does anyone actually know when people get notified of entitlements for after April ? will they make people wait until after April 6th to see what the 'new system' generates and calculates as entitlement (presuming they have your up to date records) and then send out new letters ?
    On your latest award notice it should give the run-on payments after April. Then after the renewal is processed (about May-July time) this will be reassessed.
  • Soniclord
    Soniclord Posts: 191 Forumite
    zagfles wrote: »
    Should be "up to", nor "from", the maximum anyone will lose in WTC will be £3870. And that only applies to people earning £6420 or less.

    Me and my partner will lose exactly £3427.84 as my partner works 16 hours per week earning £5058 per year. I got made redundant therefore am looking for work but so far haven't been successful.. No doubt I'll be less successful now with all the other thousands of people looking for extra hours as well, and I did claim Contributory JSA for 6 months then when that ended I was told I couldn't claim Income Based due to my partner working part time and us getting WTC.
    zagfles wrote: »
    This is true, but what it doesn't mention is that the vast majority of the "poorest of the working parents" will be able to make up some or even most of the loss in tax credits with extra housing benefit/LHA/CTB and sometimes income based JSA.

    No such thing as extra Housing Benefit aka LHA, it's a set rate now based on the amount of bedrooms you need not what your income is, that's as far as I'm aware anyway, and what my local council verified, so where do you get it from that most people will get extra Housing Benefit etc? As that's not true.

    zagfles wrote: »
    Maybe instead of using the poor as a political football she should explain to them how they can claim other benefits to mitigate some or most of their loss.

    What other benefits? I was told because my partner works part time earning £97.28 a week that I can't claim JSA, was I mis-informed?

    I ask because me and my partner get the full rate of LHA we are entitled to which itself is a benefit and that amount is £92.31 (2 bedroom rate) we have 2 children ages 3 and 4, we also get full council tax benefit as well.

    So weekly from April 2012 (after selecting calculation year 2012/13) here http://www.moneysavingexpert.com/family/benefits-check we will get what I'll post below this.

    £113.68 in Child Tax Credits
    £17.06 in Council Tax Benefit
    £92.32 LHA (paid every 4 weeks)
    £33.70 in Child Benefit

    So we will get £256.75 each week (in essence actually £147.38) because even though the amount works out at £256.75 each week we actually only see (on a weekly basis) the Child Tax Credits and the Child Benefit (apart from week 4) when the LHA gets paid into the bank.
    zagfles wrote: »
    The only people losing the full £3870 are those couples earning £6420 or less. Most of them will be renting.

    Correct, we will lost £3427.84 which isn't that far off the full £3870 you mention, and we rent.
    zagfles wrote: »
    The loss in tax credits will lower the income assessed for housing benefit/LHA and council tax benefit, which together have an 85% taper. So most of those who lose the full £3870 in tax credits will gain £3290 in extra HB/LHA & CTB

    I was informed by the council that is not the case... As we were told we wouldn't get any extra LHA/CTB as it's a set rate these days, which to be honest is fair enough, it has to be and to be honest I think because most people earning less that £6420 get full LHA/CTB anyway they can't get any more obviously, can they? I don't think so but there you go.

    zagfles wrote: »
    Those on the lowest incomes (eg min wage 16 hours) their partner will be able to claim income based JSA.

    I was told I still won't be able to claim Income Based JSA because my partner works part time 16 hours a week and will continue to do so.
    zagfles wrote: »
    Or of course those who simply don't realise they can claim other benefits to make up for their loss in tax credits.

    Sorry but this keeps cropping up, what other benefits, as I've been told the exact opposite to all this 'other benefits' business...
  • Its a real pity this current rubbish government wants to penalise those on a low wage but reward those on a high wage. Nothing changes does it?
  • zagfles
    zagfles Posts: 21,495 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    Soniclord wrote: »
    Me and my partner will lose exactly £3427.84 as my partner works 16 hours per week earning £5058 per year. I got made redundant therefore am looking for work but so far haven't been successful.. No doubt I'll be less successful now with all the other thousands of people looking for extra hours as well, and I did claim Contributory JSA for 6 months then when that ended I was told I couldn't claim Income Based due to my partner working part time and us getting WTC.
    Exactly - because of WTC. However, now that you'll no longer be getting WTC from April, you'll be entitled to income-based JSA, assuming £5058 is your only income (other than HB/CTB/CTC/CB) and you don't have over £6k savings.
    No such thing as extra Housing Benefit aka LHA, it's a set rate now based on the amount of bedrooms you need not what your income is, that's as far as I'm aware anyway, and what my local council verified, so where do you get it from that most people will get extra Housing Benefit etc? As that's not true.
    Of course it depends on income, otherwise people on £60k would be entitled. But having said that - if your income is below the "applicable amount" you'll get the maximum rate and won't get any more if your income drops. The AA has various disregards (child benefit is now disregarded, also £10 of earned income if you work 16 hours), so you can be below the AA even with WTC now in some circumstances. But in this case, as yours, you should get income based JSA, and also free school meals, both of which the WTC would previously have stopped you getting. Also the CTC child elements will be going up in April.
    What other benefits? I was told because my partner works part time earning £97.28 a week that I can't claim JSA, was I mis-informed?
    No you were informed correctly at the time, but now without WTC you'll be entitled.
    I ask because me and my partner get the full rate of LHA we are entitled to which itself is a benefit and that amount is £92.31 (2 bedroom rate) we have 2 children ages 3 and 4, we also get full council tax benefit as well.
    I don't understand why you get full CTB/HB, as you should be over the AA with WTC even with the disregards. Any disabilities? Do you get the full WTC (not repaying a previous overpayment)?
  • stjman
    stjman Posts: 19 Forumite
    edited 28 March 2012 at 9:53AM
    zagfles wrote: »
    On your latest award notice it should give the run-on payments after April. Then after the renewal is processed (about May-July time) this will be reassessed.

    we received a letter a couple of weeks ago showing schedule of payments up until end of March but nothing thereafter ? Still not sure what will happen, Will payments stop or continue, no one can give us an answer, not ideal bearing in mind we need to budget for April onwards and we're still not sure if we will be £400 or £200 a month worse off without these payments. Would just like to know one way or another.

    Looks like another call to HMRC
  • zagfles
    zagfles Posts: 21,495 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    stjman wrote: »
    we received a letter a couple of weeks ago showing schedule of payments up until end of March but nothing thereafter ? Still not sure what will happen, Will payments stop or continue, no one can give us an answer, not ideal bearing in mind we need to budget for April onwards and we're still not sure if we will be £400 or £200 a month worse off without these payments. Would just like to know one way or another.

    Looks like another call to HMRC
    Sounds like they still think you're not entitled to anything after April if they haven't put a schedule for new tax year on your award. Yes give them another ring and demand answers!
  • Soniclord
    Soniclord Posts: 191 Forumite
    edited 29 March 2012 at 6:33AM
    zagfles wrote: »
    Exactly - because of WTC. However, now that you'll no longer be getting WTC from April, you'll be entitled to income-based JSA, assuming £5058 is your only income (other than HB/CTB/CTC/CB) and you don't have over £6k savings.

    Well I was made redundant back in April 2009 and signed on claiming Contribution Based JSA, which expired in October 2009, I was then told I could still sign on for Income Based JSA in order for them to pay my national insurance stamp, which I refused as I'd had such negative experiences with how the jobcentre treat people and relevant places they send you to 'look for work' aka back to work courses in places such as A4E (Action for Employment) sat in a room full of pr*cks who didn't want to work and who generally stunk/p*ssed me off so I declined as I found it a morally degrading experience when I used to have to do it!

    That's not the only reason I declined though (and I know I probably have cut my own nose off to spite my face, but oh well) it's also because I would have been paid roughly £2.20 per week in N.I contributions and it would have cost me £4.30 per week (at the time) to get to town and back on the bus, which to me wasn't worth it to sign on for less than it cost me to travel to town! And the fact we had a month old baby which that extra bit of money I'd rather spend on her! Regardless of losing out on N.I contributions and having to attend the pathetic courses the DWP send you on where you get treated as a 2nd class citizen..
    zagfles wrote: »
    But in this case, as yours, you should get income based JSA, and also free school meals, both of which the WTC would previously have stopped you getting. Also the CTC child elements will be going up in April.

    Apparently I am NOT entitled to Income Based JSA now because apparently,

    If you have not worked (and paid NI contributions) for TWO CONSECUTIVE YEARS prior to the tax year in which you applied for JSA, you are not eligible to the dole.

    So therefore because I haven't claimed any form of JSA or paid any N.I contributions (presumably? I haven't to my knowledge anyway) since October 2009 I'm not entitled to claim Income Based JSA due to that rule.
    zagfles wrote: »
    I don't understand why you get full CTB/HB, as you should be over the AA with WTC even with the disregards. Any disabilities? Do you get the full WTC (not repaying a previous overpayment)?

    No offence but what's not to understand?

    My partner only earns £97.28 per week, I don't earn anything, we have 2 young children aged 3 and 4 therefore we are entitled to claim Working Tax Credits until April the 6th this year, we are also entitled to claim £92.31 in LHA and also full CTB.

    Is that wrong? As the DWP don't think so, nor does the Council.
  • zagfles
    zagfles Posts: 21,495 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    Soniclord wrote: »
    Apparently I am NOT entitled to Income Based JSA now because apparently,

    If you have not worked (and paid NI contributions) for TWO CONSECUTIVE YEARS prior to the tax year in which you applied for JSA, you are not eligible to the dole.
    That's the rules for CONTRIBUTION BASED JSA. not income based!

    You will be now be entitled to income based JSA, there are no NI conditions whatsoever for income based JSA. You should get about £1250 (£24pw)
    No offence but what's not to understand?

    My partner only earns £97.28 per week, I don't earn anything, we have 2 young children aged 3 and 4 therefore we are entitled to claim Working Tax Credits until April the 6th this year, we are also entitled to claim £92.31 in LHA and also full CTB.

    Is that wrong? As the DWP don't think so, nor does the Council.
    According to my calculations you'd be above the AA with WTC. Not much, bit a little above which should have reduced your LHA/CTB. That's why I asked whether you get the full amount of WTC, and if it was reduiced eg because of repaying an overpayment.
  • Soniclord
    Soniclord Posts: 191 Forumite
    Above AA, what's that?

    And this £24 per week what's that based on? And would we be claiming as a couple or do I just claim? Because my partner works 16 hours, I have never claimed when being with someone so wouldn't know.

    And presumably if we have to claim as a couple they'd take off my partner's weekly wage of £97.28 off any amount we'd get?
  • shedboy94
    shedboy94 Posts: 929 Forumite
    zagfles wrote: »
    Sounds like they still think you're not entitled to anything after April if they haven't put a schedule for new tax year on your award. Yes give them another ring and demand answers!

    Or you could phone and ASK......as opposed to DEMAND........
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