WTC Help!

kerry87_2

Hello,


My mother has claimed working tax credits for the past 5 years, she has been in her current job for 2 years, my question is, she was laid off 3 times for a period of 2-3 weeks each time within the last two years and I know with WTC you get a 4 week run on period so she did not tell them as she got back into work within the 4 weeks each time ( same place of work )


When renewing this year, does she have to get a statement from the jobcentre for what she earned or does she just give them the figures on her P60 from work?


Thanks in advance

kerry87_2

blondebubbles wrote: »

If she went back to work with the same employer within 4 weeks then she doesn't need to inform them.

She would if it was more than 4 weeks or a different employer.

You mention a statement from the jobcentre, what was this for? Did she claim benefits from them?

She did claim jsa for the period where she wasn't working in case they did not want her back, but only for around 2 weeks each time so she is worried now when she does her renewal , will she need to provide further evidence?


she earned £2000 less than she estimated and altogether probably got around £700 from JSA altogether from the 3 periods where she wasn't working

kerry87_2

blondebubbles wrote: »

Was it income or contributions based JSA?

I actually think it was income based JSA

kerry87_2

blondebubbles wrote: »

Then she won't need to declare that as part of her income.

She should check for definite though.

Thank you so much for your help, I will let her know this evening as she will be renewing her WTC.

Icequeen99

blondebubbles wrote: »

If she went back to work with the same employer within 4 weeks then she doesn't need to inform them.

She would if it was more than 4 weeks or a different employer.

You mention a statement from the jobcentre, what was this for? Did she claim benefits from them?

I think it would depend on what her knowledge was. If she was laid off permanently or for an indefinite period she would need to report her hours fall at that point and the 4 week run-on would kick in. the fact she went back 2 or 3 weeks later wouldn't change that. Her claim should have ended and a new claim made.

It is about what she knew at the time, not what actually then happened

Also the WTC she was getting would count as income for JSA.

IQ

Icequeen99

blondebubbles wrote: »

If someone calls to report they restarted work whilst within the 4 week run on they wouldn't need to make a new application.

Interesting, I still don't think that is legislatively correct but it is interesting that is the process. That said, there are several processes that don't follow the legislation so it isn't surprising.

IQ

Icequeen99

blondebubbles wrote: »

What surprises me more is the fact that income based JSA was paid when there was a live WTC claim.

There is nothing prohibiting the two together as the rules for 'remunerative work' is different on both.

However, the WTC should have been declared for the IBJSA claim which normally would knock the person off IBJSA.

IQ

jetplane

The OP thinks it was income based but if she has been working and claiming WTC for 5 years then it is highly likely that it was contribution based, therefore the WTC would be ignored.

jetplane

During the 4 week run on the WTC is not dependent on the claimant working therefore it is not paid to someone who is currently working. It is paid to someone who was previously working.

CB JSA would be paid by DWP if a claimant was actively looking for work. It would seem that for that 4 weeks the claimant satisfies the criteria for both.

If a couple were receiving WTC because one of them is working and the other claimed CB JSA then one department would be paying for not working and the other department would be paying for working.

The madness of the benefit system?

jetplane

Do the changes need to be reported, is it not a case of being a gap in employment classed as 'in between jobs' which only needs to be reported at the end of the period?

If a claimant rings HMRC to say they have been laid off then they are told that they need to notify tax credits at the end of the 4 week period and the gov website certainly gives out that information.

In this case the claimant never reached the 4 week period.

jetplane

In my experience you only need to report relevant changes within one month and a gap in employment of 4 weeks or less is not a relevant change as it does not alter your annual award. Also if you returned to work within the month then there would be no change to report. As I referred to it previously I have checked the .gov website and it does say report at the end of the period.

https://www.gov.uk/working-tax-credit/further-information

However when she signed for JSA she did not know she would return to work within the month. I can see that with hindsight you might want to argue that she wasn't entitled to JSA as there was no break in her tax credit claim, but decisions need to be made on the facts at the time of the claim.

Is it moral grounds rather than legal grounds that you disagree with JSA being paid?