Will working tax credit work for me?

OCEAN

Hello there. If anyone has some good advice for my current monetary situation, I'd really appreciate it.
Here's my story...
My partner and I have an 8 month old son. We split up earlier in the year and are now back together, attempting to make our relationship work. She is claiming housing benifit/sickness benifit/child benifit. I have been unemployed since January '06, and claim jobseekers allowance and housing benifit for a room in a shared house. As I said we are getting back together, and I want to move into the home. But before I can do that, we are both applying to go self-employed. We will no longer claim the same benifits, but will make a joint-claim for working tax-credit. She will be earning £50 a week in self-employed work, and I will be earing £47 a week in self-employed work.
Hopefully later on in our new self-employed status, we'll both be earning much more. But I want to know your experiences with working tax credit, and any advice you can give me.
Thank you.
Ocean.

msmicawber

Hi Ocean,

I haven't had any problems with tax credits, but can't tell you anything about claiming them while being self-employed.

Why don't you have a look at this link:

http://www.taxcredits.inlandrevenue.gov.uk/Qualify/DIQHousehold.aspx

As for advice: make sure that you keep them informed of any big changes in your income (down or up) so that you don't risk getting into an overpayment situation. However, they've changed the rules recently, so that is less likely to occur these days. I'm not sure what happens if you were to split up again - other posters may be able to advise (sorry to bring that up, but feel forewarned is forearmed).

The other thing is childcare - they will pay 75% of registered childcare fees and you'd have to pay the remaining 25%, but you're projecting very low pay for yourselves, so I can't see that you'd be able to afford much. However, you can still apply for housing and council tax benefits, for which they will disregard part of any tax credits you receive (very little - about £10 pw, if I remember right) and will take your childcare costs into account.

I don't know if that's any help, as your query was quite general.

babyboo42

Hi,your projections for earnings are extremely low. Remember you have to be working 16 hours a week or more for WTC. bearing in mind jsa for a couple is £92.80 would you not be better working less than 16 hours and declaring your income.even if you only get a couple of quid jsa it would keep the entitlement to full hb/ctb,just a thought.
if and when you earn more than jsa rates or work over 16 hours at least you would have figures to show inland revenue for tax credit purposes.
good luck

System

If your partner currently has a tax credit claim in her sole name then you must tell the TCO immediately when you move in. This is because any payment she receives which is based on her sole claim AFTER you move in is an overpayment and they will ask for it back.

When you both make your joint claim it will be back dated to the date you moved in.

Also when you make the application you will be applying for Tax credits as a whole. The TCO will take all your details and input them in the system and that will determine if you are entitled to WTC as well as CTC. If your circumstances change then again you should tell them immediately and your entitlement to the various elements of WTC and CTC will be adjusted.

HTH