Are child tax and working tax separate financial payments?

Mark31

Hello everyone,

I recently got in touch with my citizens advice office and enquired about my benefits.

I am told we are not currently receiving working tax credits and we should be. When we renewed the person on the phone has not picked up on the fact my wife is a carer so has me down as working 20 hours which does not meet the minimum, however as she is a carer for my son we should get it.

Anyway my question is as follows,

We currently get £190 ish a week based on my sons disabilities and having another child so it is £190 a week child tax credits.
Apparently we are owed about £70 a week working tax credits too.

However if we rectify the HMRC on their mistake will it mean a drop in child tax credits? Basically will they reduce the child tax credits to accommodate the new working tax credits or are they completely separate payments?

Soapn

nearly £200 a week? cor blimey!

enabledebra

Mark31 wrote: »

Hello everyone,

I recently got in touch with my citizens advice office and enquired about my benefits.

I am told we are not currently receiving working tax credits and we should be. When we renewed the person on the phone has not picked up on the fact my wife is a carer so has me down as working 20 hours which does not meet the minimum, however as she is a carer for my son we should get it.

Anyway my question is as follows,

We currently get £190 ish a week based on my sons disabilities and having another child so it is £190 a week child tax credits.
Apparently we are owed about £70 a week working tax credits too.

However if we rectify the HMRC on their mistake will it mean a drop in child tax credits? Basically will they reduce the child tax credits to accommodate the new working tax credits or are they completely separate payments?

They aren't separate payments but different threasholds apply to the income they ignore when working out entitlement so if you qualify for both a lower amount of annual income is disregarded in the calculations- the CAB adviser should have done the calculations for you to work out what the effect is? If not go back and ask them to do this.

Icequeen99

The way the two interact (with two different thresholds) means that if you receive payments of WTC, you will be getting maximum CTC.

When you get both of them together, CTC is not taken away until all WTC, WTC childcare is gone first.

I presume you are entitled to WTC due to the new carer's exception, in which case you will get your WTC in addition to CTC.

However, if you are getting HB/CTB then the WTC will be counted as income.

IQ

Mark31

Soapn wrote: »

nearly £200 a week? cor blimey!

based on my sons disabilities

and having another child. He is very disabled and gets the high rate of many things.

Icequeen99 wrote: »

The way the two interact (with two different thresholds) means that if you receive payments of WTC, you will be getting maximum CTC.

When you get both of them together, CTC is not taken away until all WTC, WTC childcare is gone first.

I presume you are entitled to WTC due to the new carer's exception, in which case you will get your WTC in addition to CTC.

However, if you are getting HB/CTB then the WTC will be counted as income.

IQ

Yes we are entitled due to the carers exception. The citizens advice worked it that we should get an additional £70 for WTC. Our current HB and CTB is paid in full and she seems to think with an additional £70 WTC we would only lose a maximum of £5 off HB and CTB.

That cannot be right can it? We would gain £70 but only lose about £10 on other benefits. Surely that £70 must come away somewhere?

enabledebra

Icequeen99 wrote: »

The way the two interact (with two different thresholds) means that if you receive payments of WTC, you will be getting maximum CTC.

When you get both of them together, CTC is not taken away until all WTC, WTC childcare is gone first.

I presume you are entitled to WTC due to the new carer's exception, in which case you will get your WTC in addition to CTC.

However, if you are getting HB/CTB then the WTC will be counted as income.

IQ

but they aren't getting WTC- the adviser has told them they are eligible re working hours- the CTC award is currently based on the CTC only threshold.

Icequeen99

enabledebra wrote: »

but they aren't getting WTC- the adviser has told them they are eligible re working hours- the CTC award is currently based on the CTC only threshold.

Yes, I was saying when they do claim the Wtc their ctc wont change. If they are getting max ctc now they will get the same when Wtc is added.

IQ

Mark31

To clarify...

CTC won't go down. £70 WTC will be awarded.

I will lose some CTB and HB benefit but potentially only the £10 ish I am told?

shedboy94

Soapn wrote: »

nearly £200 a week? cor blimey!

£190 CTC + £70 WTC + CB + DLA + HB + CTB = More than I earn working FT administering these benefits!!

Soapn

shedboy94 wrote: »

£190 CTC + £70 WTC + CB + DLA + HB + CTB = More than I earn working FT administering these benefits!!

now now, apparently we areN'Tallowed to be judgmental here.:D

midnight_express

shedboy94 wrote: »

£190 CTC + £70 WTC + CB + DLA + HB + CTB = More than I earn working FT administering these benefits!!

No wonder this country is in such a state. It's about time they stopped all child related benefits.