Housing benefit help please?

Shelldean

SkyeKnight wrote: »

You've said your OH works full time, so you do qualify for WTC, it's just that your income is high enough for them to all get tapered off and also a bit of your CTC too (hence why you are getting less than the maximum amount). The taper due to income is removed first from WTC then CTC then the Family element.

It's all explained here:
http://www.hmrc.gov.uk/taxcredits/payments-entitlement/entitlement/how-worked-out.htm
"The 'elements' you're entitled to for a year are all added together and are then reduced if your gross income (before tax and National Insurance is taken off) goes above a certain level. The higher your income, the lower your tax credit payments will be."

mmm ok I 'think' i get it now. And yes the calculations indicate we lose £52 per wk for him.

One question.... this yrs TC are worked out on OH last yrs income, which was higher than normal - he was given PILON during the yr due to redunancy,so his P60 reflected this and this is the figure I gave when I renewed a few wks ago.

As this yrs earnings will be less is it worth asking them to work it out based on what he will earn this yr, or leave it and be underpaid?? least i think we'll be under paid? wont we?

It's a difference of £2,200.
And TC say not to tell them unless the drop is more than £2500.

Nysinator

I'm pretty sure that non deps with an apprenticeship will not get non dep deductions as long as it is a true apprenticeship. It is similar to when non deps are students, even after 18 no deductions are taken, unless it is different district to district??

zzzLazyDaisy

This is not the case. I didn't know this either, but having made enquiries, I am fairly reliably informed that in the June 2010 Budget, the Chancellor announced that the rates of non-dependant deductions (NDDs) would be increased over the following three years to bring them up to 'realistic levels'.

There is no NDD for youngsters aged 16-18 no matter what their income, but in the current tax year a person aged 18+ in remunerative work and earning less than £126 per week has a NDD of £13.60.

Shelldean

zzzLazyDaisy wrote: »

This is not the case. I didn't know this either, but having made enquiries, I am fairly reliably informed that in the June 2010 Budget, the Chancellor announced that the rates of non-dependant deductions (NDDs) would be increased over the following three years to bring them up to 'realistic levels'.

There is no NDD for youngsters aged 16-18 no matter what their income, but in the current tax year a person aged 18+ in remunerative work and earning less than £126 per week has a NDD of £13.60.

this is what my council said, but their amount is slightly lower at £11.45, for salary below £123. But thats from their figures for 12/13, cant find one for 13/14. So might possibly be the £13.60 you mention.
But they have asked for a letter from his employer confirming his apprenticeship, as it is a lower deduction?

As I said earlier, the ball is now rolling and I'll just await and see what the out come actually is. But it will be a while until we know as the council want four weeks payslips from son, and he wont get his first until a week on Friday.

Shelldean

LazyDaisy

I think you're info is more up to date than my council >.<

My council states
NDD are as follows...
2010/11 £7.40
2011/12 £9.40
2012/13 £11.45
so as it's rising by £2 appox a yr, your figure of £13.60 seems about right.

I've given up trying to work out the final outcome, it's giving me a headache, and I'm stressing which is no good for my panic attacks. So I'll do what I can then try not to stress any more.

Shelldean

to update and finalise this, as my housing benefit account online has been updated.

It appears I have lost £54 appox in CTC (not had award notice yet but they notify council directly, so i can see the figures used in the councils calculations.)

By removing my son as my dependant, my HB is reduced by £42.65.
And of course no more Child benefit for him.

So in total thats
£54 + £42 + £13 = £ 109

And that is with NO deductions on my rent for him as his wages dont count until he reaches 18.
My HB is reduced because the applicable amount has reduced by removing him as a dependant.
This would happen whether he is earning £50 or £500.

When they start making deductions on his rent when he reaches 18, and including his wages in our household income, HB stops completely.

My total loss when they include his wages is £136.

His weekly wages will be £150 not the £100 I first thought.

So unless he gives me £136 out of his wages I've got to juggle figures madly!!!
But as a joint household we will be £14 better off.
But as his weekly bus pass is £13, we'll be richer by one whole £.

Still we'll be housing benefit free wont we?

Shelldean

am now scratching my head at my council.

when I told them DS would be earning£150 a week, I lost about half my money now and then I lost all of my HB when he turns 18.

Now I've taken two payslips in which shows him earning MORE than £150 and his contract.
They've given me 90% of HB for two weeks, ( they reckon that cos he was still a dependant those two weeks despite him working)
I then drop back down to my usual amount of HB appox 50% then when he turns 18 it drops to about 25% of the rent.

I've called and discussed this but they are adamant they are right.

Not sure how it can be when I lost everything when he was earning £150 but keep it and even get more some weeks when he's earning more. Housing Benefit officer says to just wait and it will sort itself out, but in the meantime I'm probably being overpaid. And they will want that back at some point probably when they work out my entitlement is nil again.

I was actually looking forward to being HB free and not having update them and take things over there every time something changes.