Tax credits advice needed please...

Decanus

hi all,

I recently lost my job and am on contribution based JSA of £71 a week, for 6 months max. My wife is on £25k a year gross. We have 2 children, aged 2 and 1

I rang up the tax credits line today to make a claim, and was told we were earning too much to qualify.

I am a bit confused as I thought the threshold was £32000, and we will clearly not earn that at the moment. I asked him he did understand that my JSA was only guaranteed for 6 months not 12, and he said thats how he worked it out. I think he got it wrong, but he seemed to think I was just being a nuisance.

Before I ring up Monday and have a barney about this, is there something I am missing? are my figures wrong? I found the person quite aggressive, as though they are trying to put people off deliberately.

Any advice gratefully accepted...now to go and cool down!

princessdon

AFAIK (and I am not the expert so this *could* be wrong).

Wife - £25K, JSA - £1800 + your earnings to date.

How much have you earnt between April and July?

All added does it take you over the £32?

Also is your wife working more than 16 hours a week?

Do you have childcare?

Decanus

thanks for commenting. Between April and June I earnt (gross) just over £5000, so I suppose that takes it close to that threshold. Does it not matter though that that was my past income?
Surely you only require the tax credits after a period when you earnt, so by that criteria virtually anyone that worked in a job with a reasonable level of pay would never qualify for tax credits. Why is past income relevant to future tax credits? anyhow...
My wife works full time, so 40 odd hours, and we do have childcare costs for 2 children, which we have reduced down since I lost my job, but still cost about £400 a month (our nearly 3 year old will be starting pre-school, so we are very reluctant to take her out)
In essence, seems I am going to be penalised for having had a reasonably well paid job; albeit one that cost me nearly £4000 a year to travel to, and one that had a pay freeze for 3 years!

Icequeen99

Decanus wrote: »

thanks for commenting. Between April and June I earnt (gross) just over £5000, so I suppose that takes it close to that threshold. Does it not matter though that that was my past income?
Surely you only require the tax credits after a period when you earnt, so by that criteria virtually anyone that worked in a job with a reasonable level of pay would never qualify for tax credits. Why is past income relevant to future tax credits? anyhow...
My wife works full time, so 40 odd hours, and we do have childcare costs for 2 children, which we have reduced down since I lost my job, but still cost about £400 a month (our nearly 3 year old will be starting pre-school, so we are very reluctant to take her out)
In essence, seems I am going to be penalised for having had a reasonably well paid job; albeit one that cost me nearly £4000 a year to travel to, and one that had a pay freeze for 3 years!

Tax credits are based on annual income (either previous year or current year depending on the difference between the two). So it isn't just decided by the fact you are currently on a low income. And yes, if you have a good paid job for part of the year, even if you lose it you can be outside of tax credits income limits because it is taken into account as part of your annual income.

You won't get any help with childcare costs through tax credits because you are not employed.

IQ

princessdon

£5000 + £25000 + JSA minimum probably take you over

Childcare - Entitled - IF you were working, but you are not.

Sorry but you appear to be "over the annual limit" - If you work again - apply for childcare

Do I think it's wrong = YES

Do I think it's unfair the way they use annual V actual = YES

But sadly for this govt it's the way it is. The fact you paid XX in tax and NI is worth peanuts to them (as you can see from £71 ppw) yet they pay for those longterm unemployed to stay unemployed and pay all rent/council tax.

I wish I could say you are entitled and there is a mistake - but sadly there doesn't appear to be so unless your wife or children are disabled.

princessdon

BTW the only other advice I can offer (not benefit related) but being in your exact position a year or so ago is to contact your mortgage advisor (if any).

We rang ours and explained the situation (one uenemployed and entitled to JSA cont only). They agreed to 12 mos holiday from mortgage. It was added to the term (so we pay anyway) but at the time gave a breathing space as no mortgage was due.

Good luck - I genuinely hope you find work soon - especially as the govt won't help in your situation. Something I personally find strange given the tax and No paid, but a 12 month mortgage holiday will give some peace of mind and worth a phone call.

[Deleted User]

I'd consider saving the childcare costs. If you are not working then you must do the other stuff around the childcare, obviously not the interviews!

Decanus

Thanks for all the replies.
Unfortunately, despite its unfairness, it does indeed seem as though we just exceed the minimum. First time I've been unemployed in 10 years, so feel a little aggrieved that the one time in those 10 years we want a little assistance, its not there. As princessdon said, if I hadn't worked a jot for those 10 years, I'd be eligible for all sorts..
I was actually told it was a 'shame' my wife works! A mortgage holiday is a good idea, but not sure we would get it - unfortunately, we have a mortgage with Northern Rock, and they are doing all they can to get rid of everyone!