Redundancy and tax credits

cherryade44

Hello , I willl be made redundant from work sometime this year. I have not yet been given my statutory 12 weeks notice. I currently receive working and chid tax credits. I have been told there are two ways of terminating my employment, once I am given official notice

1 I continue working as normal until my 12 weeks notice is finshed

2 I am paid 12 weeks pay in lieu of notice ( a taxable  lump sum ) and become unemployed

My questions are

1 If I get another job during my 12 weeks notice do I have to re-apply .for tax creits as a new claimant

2 If i was paid  in lieu of notice and then got another job after losing my job, would I need to apply as a new claimant

I will ring the tax credits but wondered if anyone here had any advice.

Many thanks in  advance

Alice_Holt

I think that as you receive Child Tax Credits your claim will continue regardless of whether the WTC element ends because you are no longer working the requisite weekly hours.
 (Note - if taking pay in lieu of notice, this may occur earlier than if you continue to work) 

You would not, in any case, be able to reapply for tax credits - it has been replaced by UC for new claimants.
You may wish to look at new style JSA whilst job seeking, and get a benefit check.
https://www.gov.uk/guidance/new-style-jobseekers-allowance

cherryade44

Dear Alice_Holt that thought never occured to me. for some reason I assumed you had to be working to claim child tax credits. You make a very interesting point. I thank you very much for your advice

Alice_Holt

This may be useful, but doesn't seem to cover your circumstances:
https://www.entitledto.co.uk/help/changes_that_trigger_Universal_Credit

Also see:
https://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/entitlement/ctc-elements/
" CTC can be claimed by people who are responsible for one or more children or qualifying young persons. It is immaterial whether the claimant is in work to claim CTC."

cherryade44

Dear Alice_Holt, many thanks for moe advice. The first link you posted ' universal credit triggers ' it says if you already claim Child Tax Credits and income based legacy benefits and you start work with enough hours to satisfy Working Tax Credit conditions you should have a choice - either remain on existing benefits with added Working Tax Credit or claim Universal Credit if you will be better off

So it's possible I may continue with CTC after redundancy and may even get WTC again  if I found another job.

Your advice has given me much food for thought. Thanks once again

calcotti

cherryade44 said:

So it's possible I may continue with CTC after redundancy and may even get WTC again  if I found another job.

That’s correct. Tax Credits are one benefit with two parts. The requirement for Child Tax Credits is to have children, the requirement for Working Tax Credits is to meet the work conditions. If you have either one you can add the other if you qualify.

cherryade44

calcotti said:

cherryade44 said:

So it's possible I may continue with CTC after redundancy and may even get WTC again  if I found another job.

That’s correct. Tax Credits are one benefit with two parts. The requirement for Child Tax Credits is to have children, the requirement for Working Tax Credits is to meet the work conditions. If you have either one you can add the other if you qualify.

Thankks for the confirmation calcotti, much appreciated