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Tax credit coronavirus payments

13

Comments

  • poppy123b
    poppy123b Posts: 31 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    hope this helps :) taken from the dept for work and pensions website :)

    Additional earnings disregard and WTC

    3. The current rate of the additional earnings disregard of £17.10 is increased to £37.10. The increase takes into account the temporary increase in the basic element of WTC and takes effect on 6th April 2020. The increase will cease to apply at the end of 4th April 2021.

    4. HM Revenue and Customs (HMRC) has confirmed that increases to the basic element of WTC will be applied to claims in batches over a 35-day period from 9 April 2020 which will result in the increase from 6 April 2020 being paid as arrears.

    5. Arrears payments of Tax Credits including WTC are treated as capital and can be disregarded for 52 weeks under paragraph 9 of regulation 46 and paragraph 9 of Schedule 6 of SI 2006/213 and under paragraph 3 of regulation 44 and paragraphs 18 and 21 of SI 2006/214.

    6. This means that in cases where HB claims do not see the increased rate of the additional earnings disregard and increased rate to the basic element of WTC applied to individual claims within the same benefit week, overpayments are not created.

    7. Claimants who have been furloughed or whose hours have been reduced temporarily will continue to be entitled to WTC as they will be treated as still working their normal hours for 8 weeks when entitlement will be reviewed. This means they will also continue to be entitled to the additional earnings disregard for the same period.



  • k2020
    k2020 Posts: 61 Forumite
    Fourth Anniversary 10 Posts
    Housing benefit do get informed by hmrc so they will update payments on there system . 
  • Ive had leter from housing benefit saying i will receive less due to getting more tax credits
  • Ive had leter from housing benefit saying i will receive less due to getting more tax credits
    That’s what I’m waiting for !
  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Ive had leter from housing benefit saying i will receive less due to getting more tax credits
    Have you tax credits increased by £20/week or by more than that?
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • calcotti said:
    Ive had leter from housing benefit saying i will receive less due to getting more tax credits
    Have you tax credits increased by £20/week or by more than that?

    by £20


  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    calcotti said:
    Ive had leter from housing benefit saying i will receive less due to getting more tax credits
    Have you tax credits increased by £20/week or by more than that?

    by £20
    That doesn't seem right then. If the Tax Credits have gone up by £20 this should be covered by the increased disregard and shouldn't affect your Housing Benefit. May be worth contacting the Housing Benefit team.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • What happens to WTC if not extended after the 8 week period
  • Ive had leter from housing benefit saying i will receive less due to getting more tax credits
    I got my email today saying my housing benefit will go down due to the extra £20 working tax credit. Cheers then !
  • Sweepy2013
    Sweepy2013 Posts: 20 Forumite
    Ninth Anniversary 10 Posts Combo Breaker
    andy_1967 said:
    What happens to WTC if not extended after the 8 week period
    We still don't know yet as HMRC has still not updated the situation. Why they haven't, I'm not sure? Leaving it a bit late really, as many people's 8 week period of furlough is nearly over 😐
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