New job. Scared benefits will stop

edited 30 September 2018 at 10:21PM in Benefits & Tax Credits
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GallstonesGallstones Forumite
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edited 30 September 2018 at 10:21PM in Benefits & Tax Credits
Hi all

Looking for some help. I’ve been self employed for about five years but rarely break even. After a lot of thought I decided to go back to work full time. I start a new job tomorrow and will be earning 17k. My wife earns about 450 a month and gets carer allowance and DLA for our son

we currently survive off tax credits and receive housing benefit. As I’m self employed I don’t think I’m entitled to a run on. I’ve worked out from entitled to that we willl still get tax credits and housing benefit

What I need to know is will my benefits stop completely once my employer informs hmrc? Do hmrc talk to tax credits and housing benefit to inform them I’m working? I’m not trying to rip any of the benefits off but won’t make it through the month if my benefits stop right away. It would be easier to repay an overpayment
Here today, hospital tomorrow :(

Replies

  • konarkkonark Forumite
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    Your benefits will stop if you are above the relevent earnings thresholds. On the level of income you have reported you will still be entitles to CTC/WTC and a lower rate of HB.


    Informing HMRC and the LA promptly will avoid an overpayment. Tell them the amount you will be paid and check this will be low enough for the claim to carry on. You really don't want them to mistakenly stop your benefit pending reassessment as that will throw you into the UC firepit.
  • calcotticalcotti Forumite
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    Your local authority may suspend payment of HB while they reassess the claim but will then pay you arrears of what is due once they have finished the process.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • GallstonesGallstones Forumite
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    Would I still be thrown into the UC fire pit with three children? I thought it only applied to those families with just two

    My original question was will all my benefits be stopped straight away pending assessment? I know I have to declare this but I have no savings whatsoever and there is stuff all over the internet saying my benefits will stoonstraight away as
    Employer has to register me day one with hmrc due to company vehicle
    Here today, hospital tomorrow :(
  • poppy12345poppy12345 Forumite
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    Gallstones wrote: »
    Would I still be thrown into the UC fire pit with three children? I thought it only applied to those families with just two

    My original question was will all my benefits be stopped straight away pending assessment? I know I have to declare this but I have no savings whatsoever and there is stuff all over the internet saying my benefits will stoonstraight away as
    Employer has to register me day one with hmrc due to company vehicle
    You can't apply for UC if you have more than 2 children.


    As advised, your housing benefit maybe suspended while they reassess your claim. You can use a benefits calculator if you know how much you're going to be paid from working and this will tell you how much housing benefit you'll be entitled to.

    https://www.entitledto.co.uk/
  • edited 1 October 2018 at 8:37AM
    pmlindyloopmlindyloo Forumite
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    edited 1 October 2018 at 8:37AM
    Your circumstances will not mean a move to Universal Credit as you already have live claims for tax credits and housing benefit an, as you say, you have 3 children.

    An increase in earnings is not a mandatory reason to inform tax credits as they are based on the last tax years income. However, it is sensible to inform them, perhaps when you receive your pay slip.

    https://www.litrg.org.uk/tax-guides/tax-credits-and-benefits/tax-credits/what-changes-do-i-need-report

    You need to inform housing benefit straight away as it will affect the amount you get. They may or may not suspend your HB to prevent an overpayment.

    https://www.dover.gov.uk/Benefits/Housing-Benefit/Change-of-circumstances/Change-of-Circumstances.aspx

    If you are short of money because of this then ask your employer for an advance in wages or speak to any creditors to hold off payment for a month. You should pay your priority bills - rent, council tax, electricity etc but can ask for 'time to pay' from any non priority creditors - credit cards etc They are usually helpful in these circumstances.
  • calcotticalcotti Forumite
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    If your total joint income by March 2019 is less than £2,500 more than last year's income your Tax Credits for this year will not be affected at all. If the difference is more than £2,500 the Tax Credits will be recalculated based on this year's income. If there is a chance that the difference will be more than £2,500 it makes sense to tell them now to reduce risk of overpayment.

    Obviously next year the Tax Credits will be lower if your income has gone up.

    Guidance on reporting changes is here https://www.gov.uk/changes-affect-tax-credits/changes-you-must-report
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • MortgageMammaMortgageMamma Forumite
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    This looks like a difficult situation, trying to better yourself and get a job but lack of capital and an overzealous benefits system making you lose faith and worry about if you can make the leap.

    I would speak to your landlord and explain the situation, that you are about to start work but your claim will be reassessed, if you are not paid before your next housing benefit is due you will need extra time to pay.

    I doubt your tax credits will stop
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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