Temporary employment and Tax Credits?

oldMcDonald

DH has at last managed to find some work - only temping for two weeks with Royal Mail, but it's something!!

Anyway, I'm after advice about when I should tell tax credits about his temporary employment, and if it will mess up our claim at all? Housing Benefit appears to want us to stop claiming and then reclaim - it took them six months to originally do the paperwork and I'm worried it will take that long again, I don't know how we will manage if Tax Credits will get messed up as well

Should I tell them before he starts work, or in April when I fill in the form for income for the year? Sorry, but neither of us has temp'ed before so I don't really know how to go about making sure we don't do something wrong and end up with a huge amount of overpayments to pay back.

Thanks

Zara33

Afraid you have to inform everyone of the change in circumstances.

oldMcDonald

Thanks, Zara33 Just in case anyone thinks I'm trying to get out of telling them, I honestly am not!! (Don't want loads of people to start shouting at me!!) I was just not sure of when I was to tell them.

Is there anyone here who has done temp work and knows how long Tax Credits take to sort out? We were really pleased that he has found some form of work, but we are starting to wonder now if it will be worth it if two weeks of work means months of trying to sort money out again if no other work comes up

Zara33

Could there be a possibility that it may last longer?

debt_doctor

Hi,

There is no legal duty to inform tax credits of an in year increase in income of less than £ 25000 - Leave it well alone !

DD

PasturesNew

Yes. Leave it. For 2 weeks it isn't worth the hassle.
And yes there is something about £25k changes - which gobsmacks me as hardly anybody earns £25k or anywhere NEAR it, so seemed an odd and arbitrary sum!

debt_doctor

Hi,

Just to clarify, tax credits are based on your income of the previous financial year. So long as you still satisfy the main rules for the type of tax credit ( s) you are claiming then an increase of income of £ 25,000 or less may well result in an overpayment when re calculated but will not be recoverable.
This was introduced by then chancellor Gordon Brown to stop massive recovery of overpayments ( the previous figure was £ 2500 )

You must inform tax credits if the child you claim for no longer counts as a child or in wtc if your hours or childcare changes.

Best

DD

Zara33

debt doctor, she will still have to inform housing benefit right?

debt_doctor

Yes Zara, most definately and council tax ben aswell

DD

oldMcDonald

Thanks everyone

Sadly, Royal Mail are not paying £25k for 2 weeks work , so hopefully it shouldn't effect Tax Credits too much.

Zara33, the work is only temporary to cover their extra work-load over Christmas, so unfortunately it will not continue. However, we reckon that any amount of work, however short, looks good on the CV and shows that he isn't 'scared' of work or unsociable hours (10pm - 4am with RM) to any future possible employers.