Tax credits threshold

lacoste1985_2

Hi

Can someone please advise. I am about to be dismissed from my full time job due to long term ill health having been off work the last 8 months. This job gave me a salary of £20000. I also have a partner who works part time and earns about 8000 a year.

I still have a zero hours part time job that I work around 16 hours a week in. I thought due to my substantial change in circumstances in a few months once my pay in lieu of notice has all been made that i would be able to claim working tax credits based on mine and my partners joint low income per year of around £12000 but this does not seem to be the case as it seems WTC are based on previous years earnings thus taking us over the threshold to qualify.

Am I right in saying I have to wait until April 2019 to apply for WTC when our income for tax year 2017/18 would be under the threshold?

Darksparkle

Tax credits are based on the previous year's income unless the current year income increases/decreases by £2,500.

So if you were to apply from April 2018, they'd compare your income from 2017/18 and 2018/19. If 2017/18 was £28,000 and 2018/19 £12,000 then tax credits would be based on £14,500 (£12,000 plus £2,500 disregard).

That's assuming you (or your partner) meet the working hours criteria.