Tax credits 24 hour rule.

xHannahx

My husband has found today he will be made redundant soon, for working tax credits I've found the need for couples to work 24 hours, is that 24 hours between us or 24 hours each?

There seems to be loads of part time jobs in his industry but no full time locally. In the mid term he intends using his redundancy payout for retraining, but will need something short term. a part time job may be more suitable for him to focus on retraining as well.

Icequeen99

It is 24 hours between you but with one person working at least 16 hours.

There are some exceptions if one member of the couple is incapacitated, in hospital, prison or entitled to carer's allowance. In that case the working person only needs to do 16 hours.

IQ

Caz3121

the other thing to consider is that tax credits look at the income for the full tax year. Any claim will initially look at last tax years income and base any payment on that (for a couple if total earnings over £18k then there will be no payment)
Once an award is received you can notify them of the new estimated income for the full tax year...which may be x months @ full time + y months @ part time...if this is more than £2.5k lower than the previous years, the revised figure + £2.5k will be used for calculation

eg full time salary 14/15 £20k
part time salary from Jan 2016 = £10k (15/16 income = £20k/12*9 + £10k/12*3 = £17.5k
no WTC would be payable in this situation this tax year
16/17 would use the 15/16 income of £17.5k initially in calculation, advising that estimated salary was £10k would result in a recalculation based on an income of £12.5k (£10k + the £2.5k disregard)

xHannahx

14/15 will be around £21k (end of Feb) plus PILON we believe, does redundancy pay out go towards the years earning as well?
Redundancy will likely be end of February.
As we are due a baby, we are weighing up financially if he can have a month out to help with the new baby.

So if he gets a £10k job say starting April, we call tax credits tell them of the change and do they automatically adjust the claim? We get a small amount of child tax credits at present, but with a third child due so several changes to tax credits all in one sweep. We will then be paid based on £12.5k?

andrewmp

xHannahx wrote: »

14/15 will be around £21k (end of Feb) plus PILON we believe, does redundancy pay out go towards the years earning as well?
Redundancy will likely be end of February.
As we are due a baby, we are weighing up financially if he can have a month out to help with the new baby.

So if he gets a £10k job say starting April, we call tax credits tell them of the change and do they automatically adjust the claim? We get a small amount of child tax credits at present, but with a third child due so several changes to tax credits all in one sweep. We will then be paid based on £12.5k?

Redundancy wouldn't as it's not taxable, PILON may be taxable, so may be included.

Yes, you'd call them and give them new estimated earnings, if you estimate he'll earn £10k from April 16 to March 17 then they'll work out your entitlements based on earnings of £12.5k.

Based on those earnings you'd get the maximum child tax credit award of £8890 and with working tax credits it'll work out at about £11k per year, or thereabouts.