Changing to joint claim/ on sick leave (tax credits)

roje

I am currently claiming tax credits as a single person, my award includes the disability element as I have a long term degenerative illness. I have 4 children.

My salary is £30k but due to a relapse and hospital stay, I have been on sick leave for the past eight weeks and will be for the foreseeable future. I was paid in full for the first two months, but I think I will now only be eligible for SSP as I will have exhausted my sick pay entitlement from my employer.

I am currently considering reuniting with my husband following a period of separation. He has been unemployed for some time following redundancy but he is beginning a new job next week and it would benefit all of us if he moved back into the family home.

I realise if this happened, I would need to make a new joint claim for tax credits. However, his wage will be significantly lower than mine.

What will this mean in terms of tax credits as I will only be bringing in SSP and his income will be low, but I don't know if they would work out the award on the basis of my full time wage as I am still employed? Or would they calculate the entitlement based on our current income (my SSP and his salary) until I return to work (if I am able to)?

Darksparkle

roje wrote: »

I am currently claiming tax credits as a single person, my award includes the disability element as I have a long term degenerative illness. I have 4 children.

My salary is £30k but due to a relapse and hospital stay, I have been on sick leave for the past eight weeks and will be for the foreseeable future. I was paid in full for the first two months, but I think I will now only be eligible for SSP as I will have exhausted my sick pay entitlement from my employer.

I am currently considering reuniting with my husband following a period of separation. He has been unemployed for some time following redundancy but he is beginning a new job next week and it would benefit all of us if he moved back into the family home.

I realise if this happened, I would need to make a new joint claim for tax credits. However, his wage will be significantly lower than mine.

What will this mean in terms of tax credits as I will only be bringing in SSP and his income will be low, but I don't know if they would work out the award on the basis of my full time wage as I am still employed? Or would they calculate the entitlement based on our current income (my SSP and his salary) until I return to work (if I am able to)?

Tax credits is calculated on the income for the full tax year rather than your weekly/monthly pay.

So we are currently in the tax year 2015/16.

Tax credits would look at what you earned last year (April 2014 to April 2015) and this year (April 2015 to April 2016).

roje

So no allowance would be made for a substantial loss of income? Why do they tell you to inform them of changes immediately so they can adjust the claim then? I'm confused?

roje

(I worked part time last year and when I went full time in September, I informed them of my projected income until April due to me increasing my hours and they adjusted my claim immediately so I wasn't overpaid. Does that not work both ways? If I tell them my income has drastically increased, will they not adjust the new joint claim to take into account the circumstances we are currently in?)

Darksparkle

roje wrote: »

So no allowance would be made for a substantial loss of income? Why do they tell you to inform them of changes immediately so they can adjust the claim then? I'm confused?

You would tell them what your adjusted income will now be for April 2015 to April 2016 taking into account that you are on SSP.

So if you estimated for this year to earn £30,000 but for the next 3 months will be on SSP then your adjusted income for this tax year would be approx £23,650.

That would be £30,000 for 9 months (£22,500) and SSP for 3 months (£1150).

(Estimated figures as an example as actual ones aren't known)

There are also the income disregards to take into account but it would be easier to explain with accurate figures.

Caz3121

although if you are going to make a new joint claim, you will close your single claim and apply with both of your annual income from 14/15 initially and then provide an estimate for 15/16

roje

Thanks for the replies. My husband had no income at any point between April 2014 and now (part of the reason for the separation!) but has finally secured permanent full time employment. I have always worked, sometimes part time due to health. I no longer claim any sickness benefits (by choice) but am entitled to the disability element of tax credits.


The figures:
April 2014-2015
My income: £19,937
Husband: £0

April 2015-2016
My income:
Wages before deductions (Sept-Dec) £10,066
SSP (Jan- April 6th, 14 weeks) £1238

Husband's income:
Wages before deductions (Jan 11th -April 6th) £3367

Darksparkle

roje wrote: »

Thanks for the replies. My husband had no income at any point between April 2014 and now (part of the reason for the separation!) but has finally secured permanent full time employment. I have always worked, sometimes part time due to health. I no longer claim any sickness benefits (by choice) but am entitled to the disability element of tax credits.


The figures:
April 2014-2015
My income: £19,937
Husband: £0

April 2015-2016
My income:
Wages before deductions (Sept-Dec) £10,066
SSP (Jan- April 6th, 14 weeks) £1238

Husband's income:
Wages before deductions (Jan 11th -April 6th) £3367

Would also need April to September please. Or just tell us total for 2015/16.

Icequeen99

Was the separation temporary?

You may find your single claim investigated to make sure it was correct.

IQ

roje

April 2015- April 2016

My income: £16,627

Husband's income: £3367

Our actual income from now on will be much lower than this though, we would be trying to manage on a very low monthly wage until I am able to return to work. I'm assuming that would not show in the award until April 2017?

I understand why it has to be worked out on a set period but it seems uneven that they are willing to cut payments if your income increases, but not increase them if it falls.

roje

Icequeen99 wrote: »

Was the separation temporary?

You may find your single claim investigated to make sure it was correct.

IQ

Yes it was a temporary separation. However, he did not have any earnings during the entire period so the separation made no difference to the amount of tax credits I was entitled to. Had the joint claim still remained, the only difference would have been that the WTC would have been in his name as he was the non working partner.