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Tax credit renewal

13

Comments

  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    bigbill said:
    Can't work out if this means that WTC will stop for the self-employed working less hours on 31st May when the scheme stops or if it will go on until October when the furloughed scheme finishes. Very worrying to have both SEISS (S/E grant) and tax credits stop.
    This page https://www.gov.uk/changes-affect-tax-credits only links the period of disregard to CJRS
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • Coz
    Coz Posts: 126 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    edited 21 May 2020 at 3:58PM
    Coz said:
    whizzywoo said:
    Coz said:
    I'm still confused as to how my income for 2020/21 can be estimated if I don't know when my income will start up again.
    That's why it's an estimate.  If you are not receiving any furlough wages but are still employed then presumably you put nil for the wages being received.  If you are unsure what to put then I suggest you ring and speak to the Tax Credit people.
    But then do I put nil for the hours aswell? That might suggest that I don't have a job and then my WTC would stop. Is there an option when renewing online to say that you are being furloughed?
    No - do not declare nil hours or it will potentially end your tax credits. You don't declare any change of hours - you are treated as still working the required number of hours. You don't need to tell them you are furloughed. If you are furloughed, you should be receiving 80% pay as a minimum. 
    Thank you.
    I have been further confused today. Someone has led me to believe that I haven't actually been furloughed because I'm not receiving 80% furlough pay (or any percentage).
    I was under the impression that if you are laid off due to Covid-19, then it is classed as furlough regardless of whether or not you are receiving the furlough pay?
    So if I am not classed as being furloughed, does that mean I am not entitled to carry on receiving WTC until the end of the job retention scheme?
  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 21 May 2020 at 5:05PM
    Coz said: I have been further confused today. Someone has led me to believe that I haven't actually been furloughed because I'm not receiving 80% furlough pay (or any percentage). 
    I was under the impression that if you are laid off due to Covid-19, then it is classed as furlough regardless of whether or not you are receiving the furlough pay?
    So if I am not classed as being furloughed, does that mean I am not entitled to carry on receiving WTC until the end of the job retention scheme?
    You do not have to be furloughed to qualify for them WTC relaxation. As long as any change is because of coronavirus the relaxation applies.
    https://www.gov.uk/changes-affect-tax-credits
    If your working hours fall because of coronavirus (COVID-19)
    You do not need to report any fall in your working hours as a result of coronavirus (for example you’re working fewer hours or have been put on furlough).
    You’ll be treated as if you’re working your normal hours until the Coronavirus Job Retention Scheme closes.
    You should still report any changes in income, childcare and increase in hours in the normal way. You must tell HMRC if you:
    • are made redundant
    • lose your job
    • are self-employed and stop trading
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • poppy12345
    poppy12345 Posts: 18,974 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Coz said:
    Coz said:
    whizzywoo said:
    Coz said:
    I'm still confused as to how my income for 2020/21 can be estimated if I don't know when my income will start up again.
    That's why it's an estimate.  If you are not receiving any furlough wages but are still employed then presumably you put nil for the wages being received.  If you are unsure what to put then I suggest you ring and speak to the Tax Credit people.
    But then do I put nil for the hours aswell? That might suggest that I don't have a job and then my WTC would stop. Is there an option when renewing online to say that you are being furloughed?
    No - do not declare nil hours or it will potentially end your tax credits. You don't declare any change of hours - you are treated as still working the required number of hours. You don't need to tell them you are furloughed. If you are furloughed, you should be receiving 80% pay as a minimum. 
    Thank you.
    I have been further confused today. Someone has led me to believe that I haven't actually been furloughed because I'm not receiving 80% furlough pay (or any percentage).
    I was under the impression that if you are laid off due to Covid-19, then it is classed as furlough regardless of whether or not you are receiving the furlough pay?
    So if I am not classed as being furloughed, does that mean I am not entitled to carry on receiving WTC until the end of the job retention scheme?

    Surely you know if you've been "laid off" made redundant or not? If you've been furloughed you would have received some money by now. Have you contacted your employer?
  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    For the avoidance of doubt, if you have been made redundant you must tell HMRC. You may be entitled to a four week run on of Working Tax Credits from the date of redundancy.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • Coz
    Coz Posts: 126 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Coz said:
    Coz said:
    whizzywoo said:
    Coz said:
    I'm still confused as to how my income for 2020/21 can be estimated if I don't know when my income will start up again.
    That's why it's an estimate.  If you are not receiving any furlough wages but are still employed then presumably you put nil for the wages being received.  If you are unsure what to put then I suggest you ring and speak to the Tax Credit people.
    But then do I put nil for the hours aswell? That might suggest that I don't have a job and then my WTC would stop. Is there an option when renewing online to say that you are being furloughed?
    No - do not declare nil hours or it will potentially end your tax credits. You don't declare any change of hours - you are treated as still working the required number of hours. You don't need to tell them you are furloughed. If you are furloughed, you should be receiving 80% pay as a minimum. 
    Thank you.
    I have been further confused today. Someone has led me to believe that I haven't actually been furloughed because I'm not receiving 80% furlough pay (or any percentage).
    I was under the impression that if you are laid off due to Covid-19, then it is classed as furlough regardless of whether or not you are receiving the furlough pay?
    So if I am not classed as being furloughed, does that mean I am not entitled to carry on receiving WTC until the end of the job retention scheme?

    Surely you know if you've been "laid off" made redundant or not? If you've been furloughed you would have received some money by now. Have you contacted your employer?
     I know I have been furloughed/laid off due to Covid-19. All the employees were laid off in the same week. The only difference with me was that they told me I may not be entitled to the furlough pay because I wasn't on the payroll until the March 30th. But they applied for it for me anyway just incase I was. I wasn't though.
    I haven't been made redundant, I have a job to go back to.
    But when I said above that someone has led me to believe that I haven't been furloughed, I meant because I'm not receiving the furlough pay. Some people suggest you have to be receiving the furlough pay to say that you are furloughed.
  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Coz said. But when I said above that someone has led me to believe that I haven't been furloughed, I meant because I'm not receiving the furlough pay. Some people suggest you have to be receiving the furlough pay to say that you are furloughed.
    Doesn’t really matter what you choose to call it but I would tend to agree that the term furlough is inappropriate if you are not being paid. ‘Laid off’ or ‘unpaid leave’ are probably more applicable.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • sheramber
    sheramber Posts: 24,440 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper

    Q: Can employers place new employees on furlough immediately and receive an 80% contribution towards their pay?

    No, if an employee starts a new job the employer cannot immediately then furlough that new employee and claim reimbursement of 80% of their pay under the coronavirus job retention scheme. 

    https://www.cipd.co.uk/news-views/coronavirus/faqs/furlough

  • Coz
    Coz Posts: 126 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    sheramber said:

    Q: Can employers place new employees on furlough immediately and receive an 80% contribution towards their pay?

    No, if an employee starts a new job the employer cannot immediately then furlough that new employee and claim reimbursement of 80% of their pay under the coronavirus job retention scheme. 

    https://www.cipd.co.uk/news-views/coronavirus/faqs/furlough

    sheramber said:

    Q: Can employers place new employees on furlough immediately and receive an 80% contribution towards their pay?

    No, if an employee starts a new job the employer cannot immediately then furlough that new employee and claim reimbursement of 80% of their pay under the coronavirus job retention scheme. 

    https://www.cipd.co.uk/news-views/coronavirus/faqs/furlough

    Yes, I understand that. I was there for 3 weeks before I was laid off but I wasn't on the pay roll until the end of the month.
    But I'm still laid off due to Covid-19 so I should still be entitled to WTC as someone above suggested.
  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Coz said:
    But I'm still laid off due to Covid-19 so I should still be entitled to WTC as someone above suggested.
    Yes........
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
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