IB question?

daff_duck

My husband has been on long term incapacity benifit for 6 years now. He claims income support for us as a family also, if he were to get 16 hours work would he lose all of it and have to go onto tax credits?

AgeingSaver

Hi daff

I’m sure you will find the following links very useful:

Help from Jobcentre Plus (FAQ’s) for Disabled People wanting to work (including details of Tax Credits):

https://www.jobcentreplus.gov.uk/JCP/Customers/Helpfordisabledpeople/Frequentlyaskedquestions/index.html

Extended payment of Housing & Council Tax Benefit if you have been getting IB or SDA:

https://www.dwp.gov.uk/lifeevent/benefits/ep-hb-ctb-ib-sda.asp

Working while claiming Incapacity Benefit – Permitted Work:

https://www.direct.gov.uk/en/DisabledPeople/FinancialSupport/DG_10020667

Incapacity Benefit linking rules leaflet (important information about reclaiming IB if employment doesn’t work out):

https://www.jobcentreplus.gov.uk/JCP/stellent/groups/jcp/documents/websitecontent/dev_011736.pdf

Best wishes, Ageing

daff_duck

Thanx I have read those, The problem is I did an entitled to form and when I put that he will work 16hoursp/w and wages of 85.00 it keeps showing he would still get 39.00 from income support/IB. Also shows tax credits and child tax credits.This then works out we would be better off but I don't think he would get this payment would he?

wiggy747

hi daff duck me again,if your husband is the sick one he will have to get in touch with incapacity benefit first before starting any work.this is because hes claiming as sick and therefore not capable of work.he would have to get permission to work and go through the permitted work scheme.
can i also just point out when using the 16hr work rule for benefit purposes its actually under 16hrs-so basically you can do 15 hr and 59 mins

daff_duck

He wants to come off IB all together so we did a benifit check up and it still says he would get 39.00p/w extra (assuming JSA/income support/IB). This is what we don't understand, we would have to come off benifit altogether if he were to work 16hrs, so we should get tax credits and child credits. We put in that he would be earning around 90.00p/w and I would still have my carers allowance and my child benefit. The benifit check up says we would get around 160.00p/w credits but keeps showing this extra 39.00 and we don't know why.

AgeingSaver

Hello again daff

If your husband worked 16 hrs/wk at minimum wage of £5.35/hr his gross would be £85.60/wk. This is below the Income Tax & NI threshold so there would be no tax or NI deducted, so the net would also be £85.60/wk.

As a couple, your Applicable Amount (minimum the law says you need to live on) would be £151.40/wk. This is made up of £90.10 (personal all'ce-couple), £34.95 (disability premium due to DLA middle care) and £26.35 (carer premium due to your Carer's All'ce).

The total of net earnings (minus the £20 earnings disregard) and £46.95 CA is less than your Applic. Amt, therefore Inc. Support would be payable at £38.85/wk (151.40 - 112.55). This is the mistery 39.00! Child Tax Credit is dealt with separately and does not affect Income Support.

However, this is not the whole story. I suspect that you did not enter any eanings or benefit income (for 2005/2006) in the Working Tax Credit section of the 'entitledto' calculator. This needs a bit more thought and more figures, especially as your husband has been (and still is) on IB long-term rate.

I will do a bit more research and revised calculations and post again tomorrow.

By the way, I haven't noticed any mention of Rent or Mortgage in your previous posts (I may have missed something of course) but this needs taking into account if applicable.

Be back soon.
Ageing

real1314

hmmmm, there was a thing a long time ago about a 24 hr rule for working. I haven't had a lot to do with IS for a long time, but I know there was an overlap with both the 16 hr rule and the 24 hr rule - think this was when Working families tax credit was around - allowed you to opt for the most favourable???

maybe it still exists or maybe entitled to have got it wrong??

AgeingSaver

Hi real

The 24 hrs/wk rule for partners still exists. Here's what IS 20 'Guide to Income Support' says:

'Remunerative work rules
If you or your partner are in remunerative work, neither of you will normally be able to claim Income Support. For most people remunerative work can be defined as paid work of 16 hours or more a week (24 hours or more for a partner). Working hours are averaged when they change from week to week. However, these rules do not apply to certain groups of people and they can get Income Support even if they are working for 16 hours or more a week (or 24 hours or more for a partner). If you are in one of these groups or are working less than 16 hours (or 24 hours for a partner) you may be able to get Income Support. How much you get may then depend in part on how much you earn. This is taken into account when your Income Support is calculated.'

Here's the link to that page of the guide:

https://www.jobcentreplus.gov.uk/jcp/Partners/Allowancesandbenefits/Dev_010009.xml.html

The rest of the guide can be accessed using the Previous / Contents / Next links at the bottom of each page.

As I said in my previous post, I'll be back later with the rest of the story, i.e. Working Tax Credit - which will get rid of the 38.85 Income Support!

Best wishes
Ageing

daff_duck

[QUOTE=By the way, I haven't noticed any mention of Rent or Mortgage in your previous posts (I may have missed something of course) but this needs taking into account if applicable.

Be back soon.
Ageing[/QUOTE]

We get help of 33.00p/w for our 80.00p/w mortgage.

CTC- 16.60 p/w

daff_duck

AgeingSaver wrote: »

As I said in my previous post, I'll be back later with the rest of the story, i.e. Working Tax Credit - which will get rid of the 38.85 Income Support!

Best wishes
Ageing

Still confused, any news?