tax credits/conronavirus/uc

keepcalm_carryon

Hi, i am disabled and currently receive the disability element of tax credits (and standard pip care), currently (thankfully) im still working but the way things are going its looking likely we may eventually end up closing.

My employer has stated they will pay us contract hours (mine is 16) as opposed to SSP. If im technically still getting 16 hours pay would that mean i still qualify for tax credits? I know usually it gets closed after 4 weeks of sickness. I really want to avoid universal credit for as long as i possibly can as out simply with my mh conditions i cannot cope with it

There's been guidance issued for PIP, ESA and UC but i have been unable to find any clarification about working tax credits

Thank you for your time 

calcotti

In the case of sickness you would continue to be treated as working for 28 weeks not 4 if eligible for SSP.

In this case I think the ‘lay-off’ rules appear to be applicable. These appear to provide only for a 4 week run on. See https://www.gov.uk/hmrc-internal-manuals/tax-credits-technical-manual/tctm02461. However having read this a few times I am confused about exactly how the 4 week run on is applied. One would hope that in the current crisis the government would relax the rule but I am not aware that they have done so.

Under normal rules if you are no longer entitled to WTC your award will end and you will not be able to reclaim when work resumes (unless you are getting Child Tax Credits too).

Are you claiming any other benefits and do you live alone?

Danny30

Interesting, what happens if one is claiming wtc and ctc and the above scenario happens (lock down with no work but with pay) . Would staying on ctc mean that we would not be moved to UC after 4 weeks? 

calcotti

Danny30 said:

Interesting, what happens if one is claiming wtc and ctc and the above scenario happens (lock down with no work but with pay) . Would staying on ctc mean that we would not be moved to UC after 4 weeks? 

Tax Credits and Working Tax Credits are two parts of the same benefit. This means that if you are getting both but one ends you still have a Tax Credits claim and the missing part can be added back at a future date.

Just to add, no one would be moved to UC (except currently a small number of people in Harrogate). What happens is that an existing benefit ends and people may therefore wish to claim UC, or people choose to claim UC and this ends an existing benefit. Full roll out and moving of all claimants onto UC is scheduled by the government to be complete in 2024, the recent OBR report accompanying the budget referenced completion in 2026. One would expect that the current disruption will introduce further delay.

Danny30

@calcotti Thank you for the reply. I was under the impression that there are certain situations in all areas where certain changes will force people to move to UC. Harrogate is different where everyone is being forced to UC through managed migration even if there are no change in their circumstances. 

calcotti

Danny30 said:

@calcotti Thank you for the reply. I was under the impression that there are certain situations in all areas where certain changes will force people to move to UC. Harrogate is different where everyone is being forced to UC through managed migration even if there are no change in their circumstances. 

You are right. A change of circumstances will often force someone to claim UC if they wish to continue to receive benefit. The point I was trying to make is that they are not ’moved’ to UC, they have to actively claim it.

keepcalm_carryon

calcotti said:

In the case of sickness you would continue to be treated as working for 28 weeks not 4 if eligible for SSP.

In this case I think the ‘lay-off’ rules appear to be applicable. These appear to provide only for a 4 week run on. (cant quote with links?) However having read this a few times I am confused about exactly how the 4 week run on is applied. One would hope that in the current crisis the government would relax the rule but I am not aware that they have done so.

Under normal rules if you are no longer entitled to WTC your award will end and you will not be able to reclaim when work resumes (unless you are getting Child Tax Credits too).

Are you claiming any other benefits and do you live alone?

Thank you for the clarification on TC (not sure where i got 4 weeks from?)

 I claim PIP (standard daily living no mobility), and live in a houseshare with strangers (so basically alone, i dont know any of them), if i need to self isolate bf's family have said i can do it there as being on my own here with my mental health being very bad would probably finish me off 

Thanks for the advice so far seems clear government advice is a bit scarce atm so i appreciate it

calcotti

keepcalm_carryon said:?

Thank you for the clarification on TC (not sure where i got 4 weeks from?)

 I claim PIP (standard daily living no mobility), and live in a houseshare with strangers (so basically alone, ..

4 weeks is the run on for when work ends or it appears in the lay off situation, sickness is different. Different time periods for different situations, see https://www.gov.uk/working-tax-credit/further-information
You are not claiming Housing Benefit?

keepcalm_carryon

calcotti said:

keepcalm_carryon said:?

Thank you for the clarification on TC (not sure where i got 4 weeks from?)

 I claim PIP (standard daily living no mobility), and live in a houseshare with strangers (so basically alone, ..

4 weeks is the run on for when work ends or it appears in the lay off situation, sickness is different. Different time periods for different situations, see 
You are not claiming Housing Benefit?

No don't claim housing benefit, when i originally went on tax credits that offset what i would have got in housing benefit, it was either or so i took tax credits as that helped avpid the whole can;t rent to dss thing, as i can pay it out my wages so therefor not benefits (i would only have got shared room rate anyway back then and my bills are inclusive so would'vve gotten much less)

calcotti

Found this https://www.rightsnet.org.uk/forums/viewthread/15748/
this discussion suggests 8 week run on may be applicable - but it is not clear even to benefits advisers

calcotti

Update, new post on the thread I referenced above https://www.rightsnet.org.uk/forums/viewthread/15748/#74742
HMRC seem to be taking a pragmatic (and sensible) approach

Hi. I’ve rung the Tax Credit Intermediary line today about the impact on workers who have been sent home from work on nil pay due to Covid-19. They advised that those that remain in employment (ie contract not terminated) will continue to have WTC entitlement, this will be treated as a temporary change. This will apply to those who have their hours reduced even to nil (employed or self-employed). They advised that the claimant does not need to inform them.
If the job is terminated or the claimant ceases to trade as a self-employed person then the usual four-week run-on will apply.

However I am not aware of any official guidance in the public domain confirming this.