Working Tax Credit question

Martyn_B

Hi, yesterday I filled out the Benefits adviser form on the Direct Gov website, and I kind of got some good news. It came out that we are entitled to claim £89 a week in working tax credits. Needless to say, I thought it was too good to be true, so I done it all again, with the same outcome.

However, I done something wrong. I completely forgot that I had claimed JSA earlier this year, so I done the forms again, and this time it asked for detailed breakdowns of all incomes from this tax year (so far) and the last tax year (2011-2012).

After doing that, the results weren't the same, and it said we are only entitled to £0.00 per week. Why is that?

When I originall filled out the forms, it asked for each of our salaries, so why is it when I mention that I claimed JSA for a few weeks in the spring, and gave info on earnings for the previous tax year, that it now says we can't claim anything? Even though our current salaries are still the same....

Any help on this matter would be much appreciated!

Martyn

Horseunderwater

The benefit calculators are designed to be used with the previous years income - so if you put in this years estimated income then it may well have told you that you could get £89 or there abouts.
The better one to use is the one on this site - found under family income tab top right and then over to left side - called 5 minute benefit checker.
You input things like council tax - rent - mortgage - wage for both for last year and then if this years income is lower with the JSA - you choose by how much and then input this years estimated income. It should then come up with an accurate answer. It may still say that you are not entitled to anything though. If you have children under 16 or in further non advanced education or somebody is in receipt of any social security benefit, does anyone get SSP - it is far more detailed. Try that and see what comes out or not. If you are due something, then you can apply for it.

Martyn_B

Thanks for your help. I'll give that a go.

I did earn a lot more in the previous financial year (2011-2012), plus a nice redundancy package. So what you have said does make sense. But I am on a much lower wage now, so in that sense, it seems crazy to say I can't have anything because of what I have earned in the past.

But, in theory, if I wait until the next financial year, they will then use any income from this current year to base my benefits on...?

Martyn_B

Just tried the calculator on here and say's that we're entitled to nothing.

Caz3121

you can make a claim and they will initially base it on last years income and come back and say you get nothing, you then contact them and state you would like it based on an estimate of this years income instead

this should give you a rough idea
http://www.hmrc.gov.uk/taxcredits/people-advise-others/entitlement-tables/index.htm

Martyn_B

Thanks Caz, that confirms that we aren't entitled to anything. I didn't think we would be, but I had to persue something after the Direct Gov site said we were entitled to £89 a week!

Martyn_B

That table says that the cut off for joint income is £17,000, so anything over that is too much for claiming WTC. Obviously this table doesn't mention anything with regards to living arrangements etc.

Just for the sake of it, I filled out the Benefits Advisor form again, and ignored the 'have you claimed benefits this/last year' (ignoring that means you dont need to enter details for last years income). We have a combined income of over £30,000, and pay £595 rent, and it is still saying that we can claim £89 per week! I'm stumped!

Caz3121

The table does not mention outgoing as WTC does not consider outgoings (with the exception of needing childcare costs if applicable)
For help with rent it would be housing benefit from the council

do you have children?

Martyn_B

No children, or any disabilities etc.

I'm going to give them a call tomorrow to find out what's going on. Seems like we wont get anything, but I guess it's worth checking, especially with their site saying we can get £89 per week, you just never know.

Caz3121

If you entered IBJSA in the calculator it seems to give an incorrect figure. There is no WTC on a £30k income with your circumstances

skateykatey

Caz3121 wrote: »

If you entered IBJSA in the calculator it seems to give an incorrect figure. There is no WTC on a £30k income with your circumstances

No, that's correct in a sense. If someone is in receipt of IBJSA then they do receive the maximum as the household income is disregarded for the period that they received it. That's because, if you're in receipt of IBJSA no one in the household will be working (or if they are, it will be for under 16 hours a week and for very little pay)

I think the OP has got confused between the two different types of JSA (contributions based and Income based). The calculator that he probably tried the first time would have asked for IBJSA only, which he wouldn't have received. Hence the huge discrepency.

To the OP; HMRC disregard the first 30k of redundancy; that might help you if you did receive a large sum that you had originally treated as income.