Universal Credit (JSA) and Working Tax Credit?

Noseybonk1986

Hi

I am wondering if anyone can clarify the following.

If one was claiming Universal Credit as a Jobseeker (so JSA, but now re-branded) then gets a full time job, reports change in circumstances to the DWP as usual, then submits a claim for Working Tax Credit to HMRC as their circumstances permit them to do so according to the WTC calculator on site - how does the fact that they were moved onto Universal Credit as a jobseeker affect their claim for WTC??

The reason being is, i submitted a claim for WTC as soon as i started full time work as i had barely earned over the current tax year, and was entitled to claim up to a certain amount when i checked the HMRC website -

I had a response from HMRC saying i aren't entitled to WTC because i have a claim for Universal Credit. Issue is, I don't have a claim for UC, as i am working full time so therefore receive no monthly payment from DWP as a jobseeker.

I called HMRC and the adviser didn't seem to understand why my WTC claim was rejected.

I aren't sure if this adviser has given me the correct information, he didn't seem confident in his advice. I asked if the re-branding of JSA as UC paid monthly now somehow affects anyone coming into full time work who wants to claim WTC. He didn't have a clue and just asked me to submit an appeal.

Something doesn't seem right??

marliepanda

I believe all benefits are being rolled up into UC so UC should replace WTC. I could be wrong though, but I knwo thats where its eventually headed.

UC isn't JSA, it's JSA, housing benefit, all sorts of benefits in on payment to mimic a salary.

Noseybonk1986

Yeah, i understand that JSA is now UC, all benefit payments rolled into one, but the issue seems to be that as you don't 'sign off' Universal Credit when you go into work like you did on JSA, it is somehow affecting new claims for WTC.

There hasn't been any indication so far from what i've seen that WTC will also come under the UC name.

If WTC is going to become UC, then why are HMRC accepting still new claims for WTC with no advice about changes?

I am thinking it is something along the lines of an ex UC claimant having to spend so many months now not being in receipt of any benefit at all before they are allowed to begin a claim for WTC. They seem to have decided i still get an income from UC even though i'm a full time worker, because there is no way now to 'sign off'

Clever.

marliepanda

Noseybonk1986 wrote: »

Yeah, i understand that it is all benefit payments rolled into one, but the issue seems to be that as you don't 'sign off' Universal Credit when you go into work like you did on JSA, it is somehow affecting new claims for WTC.

If WTC is going to become UC, then why are HMRC accepting new claims for WTC?

I am thinking it is something along the lines of a UC claimant having to spend so many months now not being in receipt of any benefit at all before they are allowed to begin a claim for WTC. They seem to have decided i still get an income from UC even though i'm a full time worker, because there is no way now to 'sign off'

Clever.

Not everyone is in a UC area yet. It's still being rolled out. In my area some people claim JSA and HB, some UC.

You have a live claim for UC for six months after you no longer qualify. I'm guessing you earn too much to get what would have been WTC under the old scheme, and don't have transitional protection as you didn't claim WTC before.

Noseybonk1986

Thanks for the response.

I'm pretty confident i aren't earning too much though either, as i am contracting via an agency at moment and earned next to nothing in this current tax year.

Also, my last claim for WTC was around the beginning of the current year we're in and wasn't much at all.

The letter/decision i received offered no reason/explanation as to why my claim isn't accepted other than it is because i claim UC.

I'd have thought if i am earning too much money already they'd explain as reason for decision, or at least elaborated on the UC thing.

It says on the HMRC online form for submission for reconsideration, that it takes 40 odd days for a response!! pfffffffffft

Noseybonk1986

also i checked my calculations on the HMRC website to see if i was entitled for WTC and it answered me as being eligible, hence me submitting the claim which was then rejected.

IAmWales

UC is based on real time earnings, (in theory) avoiding overpayments that are common with WTC. How much are you earning now?

marliepanda

Noseybonk1986 wrote: »

also i checked my calculations on the HMRC website to see if i was entitled for WTC and it answered me as being eligible, hence me submitting the claim which was then rejected.

Depending on where you live and other things you may not qualify for WTC ever again. Youre on UC. Its replaced WTC in many areas, and therefore WTC eligibility is now null and void as to you, it doesnt exist.

http://revenuebenefits.org.uk/universal-credit/guidance/who-can-claim-universal-credit/tax-credits-and-uc/#Moving back to tax credits from UC

This may be helpful.

Noseybonk1986

OK, thanks

I just checked out the site you link and it says the following:

'Tax credits - You can currently make new claims for working tax credit and/or child tax credit in your area. However, you cannot claim universal credit and tax credits at the same time. If you are not sure which to claim, you should get advice from a local advice agency.'

I started work full time and therefore i am not receiving any money under UC ... this just seems deliberately confusing!!

The only way i am understanding this right now is that due to me not 'signing off' a UC claim as a jobseeker, it stays on my record for 6 months, even if i aren't receiving any money in benefit, that means no WTC entitlement. If so, they kept that quiet that's for sure.

They could still class that as still claiming UC so i am not allowed WTC.

As for the question above, i only earn about 11 an hour at forty hours a week right now. last time i checked it was still under the threshold and i was able to claim WTC until the limit was met for this tax year.

Alice_Holt

See: https://www.moneyadviceservice.org.uk/en/articles/universal-credit-an-introduction

"What is Universal Credit?

Universal Credit is a single monthly payment for people in or out of work.
It replaces the following benefits and tax credits :
Income-based Jobseeker’s Allowance
Income-related Employment and Support Allowance
Income Support
Child Tax Credit
Working Tax Credit
Housing Benefit.

Once you’ve claimed Universal Credit, any benefits that it replaces will stop."

And : https://www.citizensadvice.org.uk/benefits/help-if-on-a-low-income/working-and-child-tax-credits/working-and-child-tax-credits/check-if-you-can-get-working-tax-credits/

"Getting Universal Credit instead of tax credits
Universal Credit is replacing tax credits in some areas of the UK. You might need to apply for Universal Credit instead of working tax credits, depending on where you live."

You have a live UC claim, so your UC payments will now include the UC equivalent of TC .
UC will be advised of your wages, and any UC payments due to you will be calculated and paid to you.
You cannot claim both UC & WTC.

See: https://www.gov.uk/universal-credit/claiming-other-benefits

Google is your friend (or even the information you got when you first claimed UC)

Needless to say the UC rates are less generous than TC, so the payments you may have expected to receive by way of WTC won't be replicated in UC.

I suggest you find an online benefit calculator set to UC and put your info into that to see if any UC payments will be due to you.
But at £440 pw it is very doubtful that you would receive UC. (And indeed TC, unless you have children, child care costs, disabilities, etc.)

"Working Tax Credit income threshold
Number of children Annual household income limit for 2016-17
None - single person £13,000
None - couple £18,000"

marliepanda

Noseybonk1986 wrote: »

As for the question above, i only earn about 11 an hour at forty hours a week right now. last time i checked it was still under the threshold and i was able to claim WTC until the limit was met for this tax year.

If you're earning £440 a week before tax, you're highly unlikely to qualify for income related benefits

You are now a UC claimant. As I said before, the thresholds for WTC don't apply.

You are not 'getting anything' from UC as you are over the threshold at £440 a week pre tax. If your hours dropped down, your UC would top it up. Thats what it is intended to do.

If after 6 months you are still earning above the UC amount, your claim ends.