Would I be better off changing to Universal Credit from Tax Credits?

Jobfromhome

it still points to we will be better off under UC though

calcotti

poppy12345 said:

calcotti said:

Earnings £1,400.00.

OP said their partner earnings £25,000 a year or have a got that wrong?

In one of their posts (on what is now a long thread!) they said the net earnings were £1400/month which is about right for a gross salary of £25,000 so I've used the monthly figure they provided. 

Actual amount of UC payable will of course depend on actual net salary. 

Jobfromhome

could someone please clarify if this 500 pound tax credit payment on 23rd April gets paid to people who just get child tax benefit. We dont get working tax credit as I guess partner earns to much or does to many hours.

calcotti

Jobfromhome said:

could someone please clarify if this 500 pound tax credit payment on 23rd April gets paid to people who just get child tax benefit. We dont get working tax credit as I guess partner earns to much or does to many hours.

As explained in the quotation you posted yourself

You may get a one-off, tax-free payment of £500 if, on 2 March 2021, you were getting either:

• Working Tax Credit

• Child Tax Credit and were eligible for Working Tax Credit but you did not get a payment because your income is too high to get Working Tax Credit payments

The bit i have highlighted in bold is the bit i would expect to apply to you. Have a look at your Tax Credit award letter and see whether WTC are included in the calculation. You should get a text or letter shortly.

poppy12345

Jobfromhome said:

could someone please clarify if this 500 pound tax credit payment on 23rd April gets paid to people who just get child tax benefit. We dont get working tax credit as I guess partner earns to much or does to many hours.

Calcotti posted a link in a previous comment..

You may get a one-off, tax-free payment of £500 if, on 2 March 2021, you were getting either:

• Working Tax Credit
• Child Tax Credit and were eligible for Working Tax Credit but you did not get a payment because your income is too high to get Working Tax Credit payments

https://www.gov.uk/guidance/new-one-off-500-payment-for-working-households-receiving-tax-credits

Jobfromhome

poppy12345 said:

Jobfromhome said:

could someone please clarify if this 500 pound tax credit payment on 23rd April gets paid to people who just get child tax benefit. We dont get working tax credit as I guess partner earns to much or does to many hours.

Calcotti posted a link in a previous comment..

You may get a one-off, tax-free payment of £500 if, on 2 March 2021, you were getting either:

• Working Tax Credit
• Child Tax Credit and were eligible for Working Tax Credit but you did not get a payment because your income is too high to get Working Tax Credit payments

https://www.gov.uk/guidance/new-one-off-500-payment-for-working-households-receiving-tax-credits

oh yes I saw that just got confused as originally I read that 500 pounds was just for people receiving working tax credit only.

calcotti

Jobfromhome said:

it still points to we will be better off under UC though

Yes it appears so, which is not surprising as you are not currently claiming for any help with your rent.

Nannytone

I may have missed it so I apologise if this question has already been asked.
OP, is your husband paid monthly or 4 weekly?

Jobfromhome

Nannytone said:

I may have missed it so I apologise if this question has already been asked.
OP, is your husband paid monthly or 4 weekly?

his paid weekly

poppy12345

Jobfromhome said:

Nannytone said:

I may have missed it so I apologise if this question has already been asked.
OP, is your husband paid monthly or 4 weekly?

his paid weekly

This ^^ as UC entitlement depends on earnings received during your assessment period, as previously explaned. Being paid weekly will see some months will less money because of the payment cycles with his earnings because some months he will receive 5 wages rather than 4. See link and scroll down to weekly payments. https://www.gov.uk/government/publications/universal-credit-different-earning-patterns-and-your-payments/universal-credit-different-earning-patterns-and-your-payments-payment-cycles