working Tax Credit

cookiesmum · 9 September 2007 at 10:25PM

I have been told that I am now NT(no tax).I am considering going back to work after a period of being on Incapacity Benefit. The job center say I will get £98.00 working tax credits if i work 16 hours or more a week.I am now concerned that the change in my tax because of my bankruptcy willaffect what WTC I will get.I would be grateful if anyone could enlighten me on this. I dont want to find myself in a worse financial state by doing the wrong thing.

debt_doctor · 9 September 2007 at 10:33PM

Hi, I pressume your WTC award is that high because you have the disability premium, and hence the need to only work 16 hours ( unless you have children ? ) All that happens with your NT tax code is that the tax you would normally pay to the inland revenue goes to the OR instead.

Bear in mind though that working tax credit will count as income for an IPA.

Best wishes

DD

cookiesmum · 9 September 2007 at 10:41PM

Thanks for your quick reply DD. Yes part of it is Disability Premium.I am having to finnish my permitted working hours as I have been doing this for 52 weeks now.I will be earning about £36.00 a week more than I get now after i take rent and CT into account.I understand that I will have to tell the OR of any changes made.It's a big step for me coming off benefits but I just feel it's time to try and move on in life.Thanks again for your swift response.

debt_doctor · 9 September 2007 at 10:51PM

Well done and the best of luck to you ! pop any other questions you might have and one of us will probably have the answer

Best wishes

DD

JCS1 · 9 September 2007 at 11:03PM

Were you in the same employment at the time of the bankruptcy order? if you are unemployed at time of BO, or change job after the BO, then the NT tax code is no longer applied.

cookiesmum · 9 September 2007 at 11:04PM

Thanks DD. I went bankrupt on July 12th.It all still seems like a dream in a funny sort of way. I couldn't have got through it without this site. I read thousands of post and got most of the answers I needed, in such a scarey time. You all helped take the fear out of a terrible place I found myself.It's only now I wonder what took me so long to sort my life out. Onwards and upwards from now on.Bless you all.

cookiesmum · 9 September 2007 at 11:08PM

JCSI I was working ten hours permitted work as I was on incapacity ben.If I start working 16hours it will be for a different company.

JCS1 · 9 September 2007 at 11:11PM

If you change employment, which it looks like you are planning to do, then the NT tax code will be cancelled and HMRC will issue you with a 'standard' tax code instead.