ssp and wtc

donny_osmonds_mad_fan

hi, asking on behalf of a friend be great if someone knows the answer. My friend has been off work for numerous months (more than 3) sick on ssp now stopped, she claims wtc as she is a single mum and didnt even give it consideration she could get more wtc as her income has changed till I asked when she mentioned she was really struggling.

we found this on a website and wondering would it be only backdated by 3 mths or would it be back dated for the full time whilst it is a change of circumstances it is also meaning lower income for the year which is backdatable isnt it for the whole year...or is it? income has changed by about £350 a month due to now getting ssp instead of wages, any help would be great many thanks,

also if they were going to backdate it do they do it at the end of the tax year or right away..anyone knows how long that takes to go through?

Changes in circumstances
It is always a good idea to report all changes of circumstances which affect your maximum award (see tax credit elements described above) to the Tax Credit Office as soon as possible, and make a note of the date and time you rang and what was said. Reporting changes should reduce problems with overpayments (see below), and make sure you get the right amount for your circumstances. Changes which increase your tax credits (eg having another child) can be backdated by three months, so you should not lose any money if you report it within three months of the chance. Changes which decrease your tax credits (for example, no longer getting Disability Living Allowance) always take affect from the date of the change, so you should try to report them as soon as possible to avoid being overpaid.
Remember that changes in income do not have to be reported until after the end of the tax year, but it is a good idea to tell the Tax Credit Office if:

• you want your tax credits to be based on the current tax year’s income because this is lower than the previous tax year (remember not to underestimate your income for the rest of the tax year)

Gaz83

Okay, first of all it is important to remember that tax credits are not based on weekly or monthly income, they're based on the whole of the year's income. So she'll have to provide an estimate of what she thinks she will earn for the whole of the tax year - and if she's been off on SSP for three months (I'm presuming June, July and August) that will have to include a full wage for April and May and an estimate of what she thinks she'll earn up to April 5th 2008.

This kind of change can be backdated for as long as the change has been off. This is because it is not a change of eligibility, it is a change of entitlement. What this means is that her circumstances have stayed the same but the only thing that is changing is her income. So it can be backdated to the date of change.

Remember though to give an estimate of Whole of Year income for the whole of 2007/2008. If you phone up and say you want to report a change of income because her monthly wage has dropped by £350, they'll tell you to work out her 07/08 income.

For example, if her wage was £12k a year, and you thought it was going to be £350 less for 4 months, then the income would be 8months worth of £1k, and 4months worth of £650 - a total of £10,600.