Furloughed - change Tax Credits?

routinethrone

I've just been furloughed. For background I'm a widowed parent carer claiming DLA for my son. I also currently claim the childcare element of working tax credit and get the disability element, but earn too much to get the family element of child tax credit or the low earnings element of working tax credit. I hope that makes sense, phew!

With the current situation I am no longer receiving childcare (breakfast club and after school club) although I have already paid for the current school term.

Do I need to report to tax credits that I have been furloughed and also that I am not using childcare (i.e. report a change in circumstances), or is this a special situation because hopefully things will go back to the way they were before?

I really don't want to report a change as it will force me on to Universal Credit, and I won't be awarded anything as I have a stocks and shares ISA.

Monic15

You have been furloughed so HMTS should treat you as still working, you might end up with an overpayment of child care but that will be something to lobby the government about later on as everyone should be having their childcare element suspended by HMTS - its well known that nurseries are closed.  I would wait the 4 weeks and then report a drop in income, to the 80% of your salary.  The disability premiums you mentioned don't really exist on UC, worst case you'll end up with an overpayment of tax credits in the next financial year but if 99% of claimants have the OP the complaints will go through the roof .

Sweepy2013

Have a look on litrg.  org.  uk (I'm not allowed to post links yet!!). Go to the 'Tax Guides' section, then 'Coronavirus Guidance'. Under 'Guidance for Employees', select 'Work Changes'. There is a whole section further down that page about how work changes will affect tax credits.
The table at the bottom is useful, although still not 100% clear as to whether changes in childcare costs need to be reported as normal whilst on furlough? However, it does seem that we do not need to report being on furlough to HMRC for 8 weeks at least (and maybe longer if the government extends this period). I also cannot find any evidence anywhere to suggest that changing your childcare costs will stop your WTC claim and migrate you onto Universal Credit? Only certain changes would cause that, such as losing your job or your hours dropping below 16 hours? (not due to furlough). If you have any info to the contrary, please let me know! 😊

SneaksyWhippet

I asked the question regarding childcare costs with an HMRC advisor. They advised me to change my current childcare costs to £0, then update again when they resume. As far as I'm aware that won't trigger a switch to UC though.

calcotti

SneaksyWhippet said:

I asked the question regarding childcare costs with an HMRC advisor. They advised me to change my current childcare costs to £0, then update again when they resume. As far as I'm aware that won't trigger a switch to UC though.

No, it will not.