Working Tax Credit - 4 week run on

sofaman

Hi.

A friend is coming off self-employment, and also Working Tax Credit, to work full-time.

She has heard of the four-week run on of WTC, but isn't sure of a few things. Is this a lump sum? Also, what is the average time this payment is processed?

As you can appreciate, she won't get paid from her new job for sometime, so this money will, hopefully, keep her afloat.

Thanks.

sofaman

blondebubbles wrote: »

They will just be paid as normal for a further 4 weeks from when they ended their employment. The claim will then be ended once the run on is complete.

Thanks BB! The friend wasn't sure if it was a lump sum. Regardless, it will help until she receives her first wages.

Icequeen99

blondebubbles wrote: »

They will just be paid as normal for a further 4 weeks from when they ended their employment. The claim will then be ended once the run on is complete.

But if there is no gap between the two jobs, then there will no 4 week run-on as tax credits won't end due to that particular change.

OP - how long is there between her self-employment ending and the new job starting?

IQ

Icequeen99

blondebubbles wrote: »

The OP said the person was coming off tax credits. I took that as they were choosing to end their claim.

They can't necessarily get the run on though. Now we are past the renewals period, the claim could only end if there was an appropriate change of circs. The run on would only kick in if the hours fell below what is required which would happen if the gap was more than 7 days.

If they are going from self-employed to employed and there is no gap, even if they think they will earn too much and want to come off tax credits - the claim won't end and there is no 4 week run-on.

I suppose what I am saying is that the OP's friend can't choose to come off tax credits - it will be based on circs.

IQ