Tax Credits and son finishing college.?

Lord_Percy

Hi.

Wondered if anyone could help.

My son is just about to leave full time education at college (he's 19)

I received Tax Credits, Child Credit & Child support on top of my work and am a single dad.

My questions are:

1) I have been told the Child benefit ends on the first week of September. If he signs on JSA (whilst looking for an apprenticeship) will this effect the Child Benefit up till then?

2) The day he leaves college (soon) I was told I have to ring the Tax Credit line and tell them (& Child Tax Credits will stop and Working Tax credit will continue as a much lower rate).

Will the Child tax element stop right then? or will I still get a years worth (as it seems its based on last years earnings). I'm a little confused on that one but am assuming it will go right down straight away.


Thank you for any help. I have tried phoning the help line but its seems to be an endless waiting queue over last few days,

Sheepski

You want to tell them the day of any change in circumstances, yea. Ask them to calculate it on this year's situation as otherwise you're likely to end up with an overpayment this time next year, because while they estimate the benefit amounts on last year's income they will always amend it to the actual earnings and entitlement after April. I can't quite remember if they give you any run on over the summer on the CTC.

Lord_Percy

Sheepski wrote: »

You want to tell them the day of any change in circumstances, yea. Ask them to calculate it on this year's situation as otherwise you're likely to end up with an overpayment this time next year, because while they estimate the benefit amounts on last year's income they will always amend it to the actual earnings and entitlement after April. I can't quite remember if they give you any run on over the summer on the CTC.

Thank you.

So the day he leaves and I notify them, the total I was getting will go right down (to just Working Tax credits for me) from that day?

sheramber

1 https://www.gov.uk/child-benefit/eligibility

If your child starts work or gets benefits in their own right

You’ll stop receiving Child Benefit immediately if your child:

starts paid work for 24 hours or more a week and is no longer in approved education or training
starts an apprenticeship in England
starts getting certain benefits in their own right, such as Income Support, Employment and Support Allowance or tax credits


2 https://www.gov.uk/hmrc-internal-manuals/tax-credits-manual/tcm0114100

A qualifying young person can be paid Child tax Credit (CTC) up to and including the last day of full-time education where they don’t intend to continue education to an advanced level. This will be

the last day of their examinations
the last day of attendance at college (if not taking examinations)

or

the last day of attendance at college (if they’re returning until the end of term after taking their examinations).

Lord_Percy

sheramber wrote: »

If your child starts work or gets benefits in their own right

You’ll stop receiving Child Benefit immediately if your child:

starts paid work for 24 hours or more a week and is no longer in approved education or training
starts an apprenticeship in England
starts getting certain benefits in their own right, such as Income Support, Employment and Support Allowance or tax credits


2

A qualifying young person can be paid Child tax Credit (CTC) up to and including the last day of full-time education where they don’t intend to continue education to an advanced level. This will be

the last day of their examinations
the last day of attendance at college (if not taking examinations)

or

the last day of attendance at college (if they’re returning until the end of term after taking their examinations).

Thank you for info.

I'm still not quite sure on one aspect.

The day he leaves, will the payments go down to just WTC (for me) from that day? (ie will my next payment be just WTC, or will I still get the previous years)

(i'm confused as the payments i'm getting now are for last years earnings and situation, so theoretically they would go on for one more year?
ie, I was getting £120 WTC + CTC, p/w, will I now get (the estimated) £35 for WTC from that week onward?

Hope i'm making sense.

Caz3121

Lord_Percy wrote: »

(i'm confused as the payments i'm getting now are for last years earnings and situation, so theoretically they would go on for one more year?

your claim for this year may be initially based on last years income (unless current years income is +/- £2.5k) but will be validated after the end of the current tax year
Once your son leaves college there is no entitlement to child tax credits any more so the child elements will stop
Have you discussed with your son the £100+ per week that your household will be down? what are his plans?

Lord_Percy

Caz3121 wrote: »

your claim for this year may be initially based on last years income (unless current years income is +/- £2.5k) but will be validated after the end of the current tax year
Once your son leaves college there is no entitlement to child tax credits any more so the child elements will stop
Have you discussed with your son the £100+ per week that your household will be down? what are his plans?

He's looking for an apprenticeship as a mechanic, but I have explained the situation (being single, after all the bills theres very little left, as its just my income coming in). I have suggested he goes on JSA whilst he's looking (hopefully he will find a position sooner rather than later).

To makes matters worse, I will have a lot less and council tax will go up to full amount (I got single persons reduction) so we will be even more under pressure.

poppy12345

Lord_Percy wrote: »

He's looking for an apprenticeship as a mechanic, but I have explained the situation (being single, after all the bills theres very little left, as its just my income coming in). I have suggested he goes on JSA whilst he's looking (hopefully he will find a position sooner rather than later).

He won't be able to claim JSA because all areas are now a full Universal credit area and it's this he'll have to claim if he doesn't start work or an apprenticeship. Single person rate for under 25's is £251.77 per month.

Lord_Percy

poppy12345 wrote: »

He won't be able to claim JSA because all areas are now a full Universal credit area and it's this he'll have to claim if he doesn't start work or an apprenticeship. Single person rate for under 25's is £251.77 per month.

Thank you. If he goes on that, will it change my WTC? I'm not sure if I am better off on WTC or UC. I'm self employed and have read UC doesn't work well for self employed business's.

[Deleted User]

If he starts work or receives benefits he should be expected to contribute to the household bills.

poppy12345

Lord_Percy wrote: »

Thank you. If he goes on that, will it change my WTC? I'm not sure if I am better off on WTC or UC. I'm self employed and have read UC doesn't work well for self employed business's.

What he claims won't affect your tax credits but him leaving full time education will, as previously advised.



In the long term UC may not be good for you because of the minimum income floor but that will depend on how well your business is doing.