Tax Credit Entitlement?

Simbacat

My niece and her husband have never received tax credits as both have been in full time work. In May this year my niece had twin girls and has now just gone onto SMP after receiving full pay for 12 weeks. Unfortunately her husband has had an accident and has been off work on SSP for the last 20 weeks and is unlikely to return to be able to return to work until around January 2017 after he has recovered from surgery on his injury. Whilst my niece was getting full pay they managed to cope but from this month all they will be getting is SMP and SSP so will be struggling. Can they apply for Child Tax Credits even though I know figures are based on last years income?. Since April 16 they will have had a combined income of around £9000 including SSP. Many thanks

Darksparkle

Tax credits is based on last year's income UNLESS this year's income increases/decreases by more than £2500 eg last year £30,000 this year £15,000 then tax credits will calculate on £17,500.

Edit - The first £100 per week of SMP is not included as income for TC purposes up to maximum of £3,900 (39 weeks).

pmlindyloo

When your niece's husband's SSP runs out he may be able to claim contribution based ESA if he has paid sufficient NI contributions during the last two tax years. This is not means tested so any other income (the SMP or any savings) will not affect this.

At the moment as well as tax credits they can apply for housing benefit (if they rent) and council tax reduction. Both of these benefits are means tested - dependent on savings and income.

Try putting the details into https://www.turn2us.org.uk calculator for an idea of what they might be eligible for.

Tolly_T

The claim does use the figures from the previous year but if the current year is likely to be significantly different you should inform them of this and they then use the estimated figures to calculate your entitlement. The ignore the first £2500 drop so the income figure used will be the estimate for the current year + £2500.

It's worth finding out if they could claim working tax credits. If they were already receiving WTC it would continue for 28 weeks while on SSP and while on SMP they ignore £100 a wk of the SMP. I'm not sure of the situation regarding starting a claim while on these benefits but it must be worth a phone call. There is a web chat option for tax credits now which I've used and is very quick to connect and start a discussion with someone so this might be a better option if the phone lines are busy.

Darksparkle

Tolly_T wrote: »

The claim does use the figures from the previous year but if the current year is likely to be significantly different you should inform them of this and they then use the estimated figures to calculate your entitlement. The ignore the first £2500 drop so the income figure used will be the estimate for the current year + £2500.

It's worth finding out if they could claim working tax credits. If they were already receiving WTC it would continue for 28 weeks while on SSP and while on SMP they ignore £100 a wk of the SMP. I'm not sure of the situation regarding starting a claim while on these benefits but it must be worth a phone call. There is a web chat option for tax credits now which I've used and is very quick to connect and start a discussion with someone so this might be a better option if the phone lines are busy.

When on SMP you are considered working your normal working hours for 39 weeks. For SSP, 28 weeks. So if they both worked full time then WTC can continue whilst SMP/SSP is in payment.

If both of these end and they haven't returned to work then the WTC will end but CTC can continue.