starting a new job, how r benefits worked out?

whattodo02

My husband works 40 hours a week at the moment and earns 22k
he is currently looking for a new job. we have found one, but it would mean a cut in pay.

Can you tell me if when benefits are worked out, do they use last years pay ie, would they use 22k from 6th April, or would they use his new wages if he got a new job before april to work out 12/13 benefits?

We have 2 children under 5.

TIA..

whattodo02

can anyone answer this please?

Caz3121

If you are talking about child tax credits then they will initially use the 11/12 income figure and when you get the award through and give them an estimate for the new year and ask them to calculate it on this.
note: if there is any chance that there will be overtime/additional income you should overestimate as there will be no disregard so anything over the number that you give will result in an overpayment

whattodo02

Caz3121 wrote: »

If you are talking about child tax credits then they will initially use the 11/12 income figure and when you get the award through and give them an estimate for the new year and ask them to calculate it on this.
note: if there is any chance that there will be overtime/additional income you should overestimate as there will be no disregard so anything over the number that you give will result in an overpayment

thanks, is there definitly an option to ask them to do this, and do they usually do it?

Sorry only asking as its the difference between getting WTC and not getting it.
TIA..

Dunroamin

Whilst I appreciate that you've posted that your husband hates his job, to take a 25% pay cut and rely on tax credits to make this up is a very risky strategy in the present economic climate.

In addition, he'll have no job security for two years which is even riskier, particularly with a young family to support.

whattodo02

Dunroamin wrote: »

Whilst I appreciate that you've posted that your husband hates his job, to take a 25% pay cut and rely on tax credits to make this up is a very risky strategy in the present economic climate.

In addition, he'll have no job security for two years which is even riskier, particularly with a young family to support.

i know it is risky, but at the end of the day he is at his whits end and he cannot carry on the way he is!!

can i ask what you mean when you say he'll have no job security for two years please?

Dunroamin

whattodo02 wrote: »

i know it is risky, but at the end of the day he is at his whits end and he cannot carry on the way he is!!

can i ask what you mean when you say he'll have no job security for two years please?

He can be sacked at any time in the first two years of employment with no redress for anything like unfair dismissal, which he'll have with his current job.

whattodo02

Dunroamin wrote: »

He can be sacked at any time in the first two years of employment with no redress for anything like unfair dismissal, which he'll have with his current job.

oh i see, thank you, he is leaving his current job anyway, so i guess it will be the same anywhere he goes,

Can you tell me if when benefits are worked out, do they use last years pay ie, would they use 22k from 6th April, or would they use his new wages if he got a new job before april to work out 12/13 benefits?

Dunroamin

whattodo02 wrote: »

oh i see, thank you, he is leaving his current job anyway, so i guess it will be the same anywhere he goes,

He surely won't leave his job without another one to go to?:eek:

There's one thing taking a risk to better yourself, quite another to risk your livelihood in order to take a 25% pay cut.

whattodo02

Dunroamin wrote: »

He surely won't leave his job without another one to go to?:eek:

There's one thing taking a risk to better yourself, quite another to risk your livelihood in order to take a 25% pay cut.

nooo, not without finding another job - which is seeming to be hard work finding one which is why i'm looking at all avenues..

Caz3121

whattodo02 wrote: »

Can you tell me if when benefits are worked out, do they use last years pay ie, would they use 22k from 6th April, or would they use his new wages if he got a new job before april to work out 12/13 benefits?

as per earlier post - tax credits use the previous tax years income by default
once you get the award, then you can call them and give them the new estimate