Working Tax Credit/Free School Meals

chocodawn

A few months ago my circumstances changed and I was advised by Tax Credits that I was under the income threshold and could claim free school dinners. We claimed with local council a few months before the holidays and received them. I've just had a letter last week saying that the local council have checked and we are no longer entitled to them. When I have queried it, they said although me and my husband are under the income threshold, and don't actually receive WTC, because my husband works over x hours and therefore WTC is mentioned on the tax credits award (but then reduced to zero due to our income) we are therefore not entitled.


Does this sound right? I can't get my head round it. To me, we are under £15,900 income but because we must fit somewhere to be considered for WTC but then ARE NOT AWARDED any, we can't get free school meals. Just wanted to check if this is correct. Any advice much appreciated.

chocodawn

Hi,


My partner works 28 hours per week and I work 7. Our income is expected to be around £15,700.

chocodawn

blondebubbles wrote: »

On that basis there definetly should still be WTC paid, about £930 for the year.

Was the 2013/14 income any differnt?

Do tax credits definitely have the correct work and income details for both of you?

Yes, they have the correct info. This year my income is expected to be £4,500 working approx 14 hrs and my hubbie £10,978 working approx 30 hrs. So total income of £15,478. Last year income was £22,582 as I had another job.

The tax credits award gives us £6050.63 of child tax credit and then shows in part 2 working tax creidt elements totally £4,737.70 but then there is a line saying reduction due to your income and that's the whole £4,737.70 so working tax credit for the period is £0.

Hope this makes sense. The local authority lady said that because it mentions WTC (even though we don't get any) we aren't entitled. I don't understand this so just want to check.

chocodawn

blondebubbles wrote: »

That makes more sense then. When your income decreases from one year to the next, the first £2500 of the decrease is disregarded so your claim will be based on £17978 which is close to the limit for WTC.

I know more about the WTC side than the council side but I think they are correct, only those not eligible for WTC would be able to claim. So for a couple (bar a few exceptions) you'd need to work less than 24 hours per week between you.

Thanks so much for your advice. It seems unfair that we are under the income limit but because we work loads of hours to earn that much we are penalised by not receiving the free school meals. What a strange rule - I can't understand the logic behind it, but at least you have confirmed that it is indeed correct. Thanks again.