Unpaid leave

Jig74

Hi, 
I am a single mother and working 18 hours as a support worker. Due to carona virus childcare issues have arose and I will need to take unpaid leave. will this affect my tax credits? 
Thanks J

Margaret_100

You do not need to tell HMRC of any changes in your work for 8 weeks at the present time. If your income is likely to drop by £2500 a year tell HMRC and your tax credits could increase. It is possible you would get more money at present by claiming Universal Credit but if you were to do this you would loose your tax credits and any Housing Benefit and you would not be able to go back to tax credits and housing benefit ( now called legacy benefits) and there are other implications of being in receipt of UC so think very carefully before changing. 

cantcope

If you were getting credits to help with childcare i was told i had to tell them. I am paying no childcare at the moment as everywhere has closed so i adjusted my tax credits to show this as soon as all my payments to them stopped. It just hasn't been updated on my payment amounts yet.

sheramber

Not needing to contact HMRC  about tax credits applies to those who are furloughed.
A reduction in childcare costs could result in a reduced payment and therefore   should be notified to avoid being overpaid

JessicaF_2

Jig74 said:

Hi, 
I am a single mother and working 18 hours as a support worker. Due to carona virus childcare issues have arose and I will need to take unpaid leave. will this affect my tax credits? 
Thanks J

Have you asked your employer to furlough you instead - they can claim 80% of your wages back through the job retention scheme. 
Jess

KatrinaWaves

JessicaF_2 said:

Jig74 said:

Hi, 
I am a single mother and working 18 hours as a support worker. Due to carona virus childcare issues have arose and I will need to take unpaid leave. will this affect my tax credits? 
Thanks J

Have you asked your employer to furlough you instead - they can claim 80% of your wages back through the job retention scheme. 
Jess

That is only available if work isnt, I imagine this type of work is still available. OP states she cannot work due to childcare, which is not the employers issue unfortunately. 

tomtom256

Unpaid leave can be furloughed under the below circumstances: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme#employees-you-can-claim-for

If your employee is on unpaid leave

If an employee started unpaid leave after 28 February 2020, you can put them on furlough instead. If you put them on furlough then you should pay them at least 80% of their regular wages, up to the monthly cap of £2500.

If an employee went on unpaid leave on or before 28 February, you cannot furlough them until the date on which it was agreed they would return from unpaid leave.

Employees with caring responsibilities

Employees who are unable to work because they have caring responsibilities resulting from coronavirus (COVID-19) can be furloughed. For example, employees that need to look after children can be furloughed.