Working tax credit experiences

Bookowl

Hi 
I was just wandering what peoples experiences of working tax credit is and whether it’s worth all the agro?!
I would be able to apply for working tax credit due to being on a high disability benefit and a low income. However, I’ve been on working tax credits on and off over the last few years and found it a headache.

The estimated income for that tax year, for example, 21/22 is fixed. So if your income changes that isn’t taking into consideration. 

I’ve always ended up owing them the money back, even though I’ve updated any changes needed. 

Any experiences welcome. 

poppy12345

This is the downfall with tax credits, as it's based on earnings in the previous tax year although it has a £2,500 disregard, which means if the current years income increases or decreases by this amount then it makes no difference to your claim.

However, if you don't currently claim Tax Credits then it's no longer possible to start a new claim as all areas are now Universal Credit and it would be this you would need to claim.

One good thing about UC is that it's based on earnings received during your monthly assessment period. If you don't have the work allowance any earnings will reduce your maxmum UC entitlement by 63%.

If you have a health condition the limits your ability to work then you can report a health condition and send in fit notes from your GP. If you're not claiming a disability benefit such as PIP/DLA then you would need to work less than 16 hours per week to start the work capability assessment process off.

If you're receiving a disability benefit then there's no limit to the amount of hours you can work to start the LCW assessment process off.

If you have savings/capital of more than £16,000 you're excluded from claiming. Use a benefits calculator to check entitlement. https://www.entitledto.co.uk/benefits-calculator/Intro/Home?cid=6436a9c9-aaff-4417-9385-3c318251d789

Bookowl

Ah I thought I could apply for working tax credit as I’m on high PIP, is that not the case if I’m not currently on WTC?
My 21/22 income will be half of what it was in 20/21. I know that’s not taken into consideration as it won’t affect the claim. 

poppy12345

If you don't currently claim any tax credits (which includes child tax credits)  then you can't start a new claim as it's no longer possible to do this.

poppy12345

In another thread from October 2020 i see you were claiming ESA, is this still correct?

Bookowl

Thanks for clearing that up. 

poppy12345

Are you still claiming ESA? It would be helpful if you could answer that question and then i could advise you correctly.

Bookowl

I’m still on esa yes but would come off it if I got a job. I’m just enquiring to see what peoples experiences are of it since it’s been a while since I applied 

poppy12345

You can do permitted work provding you work less than 16 hours and earn no more than £143 per week (after deductions) and still continue with your ESA. Although if the work you do contradicts the reasons why you're in the Support Group then it could go against you when you're next assessed. See link. https://www.gov.uk/government/publications/employment-and-support-allowance-permitted-work-form/permitted-work-factsheet

If you work more than 16 hours per week then your ESA would end.

If you claim UC then your support group award would be honoured with this and you would receive the LCWRA element in with your maximum entitlement, providing you claim UC within 1 month of your ESA ending. You would also have the work allowance which would be £512 per month if you don't claim for help with the rent or £293 per month if you do claim for help with the rent. This means you can earn that amount of money each month before the 63% deductions apply. Use a benefits calculator.

Other peoples experiences of WTC makes no difference here because as advised you can no longer start a new claim.

calcotti

poppy12345 said:..If you claim UC then your support group award would be honoured with this and you would receive the LCWRA element in with your maximum entitlement, providing you claim UC within 1 month of your ESA ending. 

I don't think that last bit is right. I think you have to still be entitled to ESA on the day you claim UC for the work capability status to carry over.

poppy12345

calcotti said:

poppy12345 said:..If you claim UC then your support group award would be honoured with this and you would receive the LCWRA element in with your maximum entitlement, providing you claim UC within 1 month of your ESA ending. 

I don't think that last bit is right. I think you have to still be entitled to ESA on the day you claim UC for the work capability status to carry over.

Yes indeed, that's correct i just worded it badly.