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Tax credits & benefits for people in work or looking for work

edited 19 June 2012 at 6:48PM in Tax credits & benefits for work
87 replies 106.3K views
CAB_Birmingham_representativeCAB_Birmingham_representative Organisation Representatives - Private Messages may not be monitored
89 posts
edited 19 June 2012 at 6:48PM in Tax credits & benefits for work
This thread is for people who are in work or looking for work, and looking for help about the benefits that they may be able to get. It doesn’t matter if you’re working for an employer or are self-employed, you may still be able to get benefits or tax credits and boost your income.

Our advisers from Birmingham CAB Services are here to help you with your individual questions. Post your queries to this thread and a CAB representative will aim to answer your question within 2 working days.

If you’re already receiving support and advice from your local CAB, then please continue your discussion with them rather than post on this board.

Please also see the MSE post about this service and the collaboration between MSE and Citizens Advice Bureau.
Official CAB Representative
I am an official representative of CAB. MSE has given permission for me to post in response to questions on the CAB Board. You can see my name on the companies with permission to post list. If you believe I’ve broken any rules please report my post to [email protected] as usual"
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Replies

  • Anubis_2Anubis_2 Forumite
    4.1K posts
    Hello. I will start off. I want to do some contracted in work on a SE basis. I am wondering whether to go 16 hrs + tax credit (I have severe disability and work will be from bed) or to do permitted work.

    I am currently receiving the old SDA + IS. Husband receives CA which is deducted off the IS, as is the SDA.

    What I want to know is what are the linking rules? If I decided to go down the tax credits route and could not manage the hours, as SDA is an old severe disablement benefit I am unsure if it comes under linking rules.

    If not, what are the current IS linking rules to go gack on the same benefits if things don't work out?

    Additionally for my first year do I just put CA as income in the WTC form as it is based on the previous year? Will this not create an overpayment the year after? (Income won't be more than 10k more than CA)

    Thanks in advance. :)
    How people treat you becomes their karma; how you react becomes yours.
  • doodootdoodoot Forumite
    554 posts
    I shall go 2nd. :)

    I've recently started a job working term-time in a school - it is no more than 10 hours per week on average.

    My full-time Uni student 'status' ends next week - I was in receipt of student grant and loan until my last payment in April.

    My husband was promised a new job which has not materialised and so needs to claim JSA - it will be income-assessed as he hasn't paid enough NI.

    My questions are:

    1. do we need to claim as a couple as I work less than 16 hours per week?
    2. or can he just claim on his own but declare I'm working?
    3. in either case would we still be entitled to housing benefit and council tax benefit?

    We currently receive Child Tax Credits and Child Benefits for our 2 children (11 and 14), and no maintenance from their biological father (whereabouts unknown).


    I'm asking because I keep getting conflicting information from the Job Centre - I'm either told that he can claim on his own or that it has to be a joint claim due to me working less than 16 hours.

    Many thanks in advance. :)
    Stone walls do not a prison make, nor iron bars a cage.
  • CAB_Birmingham_representativeCAB_Birmingham_representative Organisation Representatives - Private Messages may not be monitored
    89 posts
    Dear Madam,

    Thank you for your enquiry. Whether or not the ‘linking rules’ apply to you will be dependant upon when you first made the claim for severe disablement allowance (SDA).

    You can only get SDA now if:

    a) you were getting SDA before Januray 2011 and there has been no break in your entitlement since that date
    b) you continue to meet the qualifying conditions for SDA
    c) no decision has been made on converting your SDA to Employment and support Allowance.

    (please note that SDA will be phased out so you may be assessed for Employment and Support Allowance between now and 2014)

    You should still be entitled to receive Income Support as long as you work 16 hours or less, depending on your income.

    For further advice please contact the Benefit Enquiry Line 0800 882 200.

    Should you choose to start working, please make the relevant benefit offices aware of the changes to your circumstances.

    According to HMRC, Carers Allowance is a benefit which will count as income, so you may have to include this on your application. For further clarification on this and how other benefits you maybe receiving may be affected, can we refer you to the following link:

    ‘Disability Benefits – How do they affect tax credit payments?’

    http://www.hmrc.gov.uk/taxcredits/payments-entitlement/other-benefits/affect-taxcredits/disability-benefits.htm

    For further advice please contact the HMRC tax credit helpline on 0345 300 3900.

    Thank you
    Official CAB Representative
    I am an official representative of CAB. MSE has given permission for me to post in response to questions on the CAB Board. You can see my name on the companies with permission to post list. If you believe I’ve broken any rules please report my post to [email protected] as usual"
  • CAB_Birmingham_representativeCAB_Birmingham_representative Organisation Representatives - Private Messages may not be monitored
    89 posts
    Dear Madam,

    With reference to your query regarding Job Seekers Allowance, may we refer you to the information available on our website: www.adviceguide.org.uk where you will find a fact sheet on:

    Benefits for people looking for work’ (type in to search engine). The factsheet reads as follows:

    “If you are living with a partner and claiming income-based Jobseeker’s Allowance, your partner must either not be working or working less than 24 hours a week. If you or your partner are working 16 hours or more, you may be able to get Working Tax Credit instead”

    For Income Based JSA, you and your partner may need to claim as a ‘couple’ because you both are over the age of 16, married and living in the same household. Your earnings and capital may be counted when assessing how much JSA you maybe entitled to.

    You should still be entitled to Housing benefit and Council tax benefit however, the amount you receive may be dependant upon your personal circumstances.

    If you would like a benefit check to see what you could be entitled to, can we refer you to an organisation that deal with benefit advice ‘Turn2us’ Tel: 0808 802 2000 website: www.turn2us.org.uk.

    Alternatively you can come into your local bureau on a drop in basis. You can find our opening times on www.bcabs.org.uk.

    Thank you
    Official CAB Representative
    I am an official representative of CAB. MSE has given permission for me to post in response to questions on the CAB Board. You can see my name on the companies with permission to post list. If you believe I’ve broken any rules please report my post to [email protected] as usual"
  • doodootdoodoot Forumite
    554 posts
    Thank you very much for the advice.

    Unfortunately I'm still getting conflicting information from the Benefits advice line - grrrr - so I've decided that I'm just going to apply for JSA and leave them to decide. :)
    Stone walls do not a prison make, nor iron bars a cage.
  • Hi,

    I just received my letter today saying I was successful with my job application and will be starting once the CRB and everything has gone through. My new post is a support worker for the council and is part time - work of only 20 hours a week and paid by the hour of £6.84. I live at home with my parents as i've just finished university and I dont have any children. Am i entitled to any benefits as I only do £136.80 per week which works out at £547.20 per month.

    Thanks x
  • CAB_Birmingham_representativeCAB_Birmingham_representative Organisation Representatives - Private Messages may not be monitored
    89 posts
    Dear EmsiWemsi,

    Benefits are usually dependant upon certain factors: age, health issues, income etc. Based on the information you have provided so far, your entitlement to benefits maybe limited.
    In order to check your entitlements, you might wish to visit the ‘Turn2us’ website which provides an online benefit checker:

    http://www.turn2us.org.uk/benefits_search.aspx

    Tel: 0808 802 2000 (Monday – Friday 8am to 8pm)

    Alternatively, you may also come to your local bureau where we can provide you with a benefit check. You can find the opening times of your local bureau on our website:

    http://www.bcabs.org.uk/Get%20Advice.htm

    We hope you find this information useful :)

    Thank you
    Official CAB Representative
    I am an official representative of CAB. MSE has given permission for me to post in response to questions on the CAB Board. You can see my name on the companies with permission to post list. If you believe I’ve broken any rules please report my post to [email protected] as usual"
  • SandJSandJ Forumite
    36 posts
    Hello,

    I guess I will start with a little bit of background information. My husband is receiving ESA-income related (support group). He has recently started working and is working 16 hours a week. He is applying to work under the supported permitted work rules so he should be okay to work 16 hours, he is earning only 97.28 a week. I receive Carer's Allowance. He gets DLA, Housing Benefit (LHA), and CTB. We are going to have a baby very soon (she is due in 2 weeks) so we will be entitled to Child Benefit and Child Tax Credit very soon.

    My question is, do tax credits count as income under the supported permitted work rules? Can we claim for Working Tax Credit and Child Tax Credit without it effecting our ESA and my husband's supported permitted work? Also, does child benefit count as income? I'm concerned that with him only being allowed to earn 97.50 a week, we may stop receiving our ESA if any of these benefits count as income.

    Thank you for your help.
  • EmsiWemsi wrote: »
    Hi,

    I just received my letter today saying I was successful with my job application and will be starting once the CRB and everything has gone through. My new post is a support worker for the council and is part time - work of only 20 hours a week and paid by the hour of £6.84. I live at home with my parents as i've just finished university and I dont have any children. Am i entitled to any benefits as I only do £136.80 per week which works out at £547.20 per month.

    Thanks x

    I'm not sure why the CAB Advisor has not answered your question, so here is the information you need.

    As you are working sixteen hours or more, you are not entitled to JSA. As you are working less than thirty hours (and/ or under 25) you are not entitled to WTC. As you are living with your parents you are not entitled to LHA/ HB or CTB.
  • CAB_Birmingham_representativeCAB_Birmingham_representative Organisation Representatives - Private Messages may not be monitored
    89 posts
    Dear SandJ

    Thank you for your query.

    In regards to your question relating to your Child Benefit and Child tax Credit these should be disregarded in assessment of your income based E.S.A

    The Working Tax Credit element however may count as income and can be included in any assessment of entitlement.

    For further information on these issues we would refer you to the HMRC website on tax credits and their helpline no 0345 300 3900.

    Regards

    Birmingham C.A.B


    :)
    Official CAB Representative
    I am an official representative of CAB. MSE has given permission for me to post in response to questions on the CAB Board. You can see my name on the companies with permission to post list. If you believe I’ve broken any rules please report my post to [email protected] as usual"
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