Partner not working Tax Credits 1 September 2022 at 6:29PM in Benefits & tax credits 7 replies 331 views

beattock

Our household income last year meant we were no longer entitled to tax credits this year however two weeks ago my husbands job ended.  I phoned tax credits to explain change of circumstances and that only I am working now. I earned just about 12500 last year and will not earn much more than that this year. The advisor explained that they would still take my husbands income to date into consideration when redoing the award notice  (£6500 gone and spent on household bills and food of course) So any amount I receive will be based on me earning 19000 not  the actual amount I am earning £12500. I am at a loss as to how this can be right and how it will be enough fuel bill probably going up to £450 next month.  I have a 15 year old at moment others children left home in further education. At a loss as to how I can mKs this work. Advisor wasn't much help.

Dazed_and_C0nfused

Why wouldn't his earnings in the current tax year be taken into account?

beattock

Probably me being naive thinking him losing his job would just create a new claim based on current situation as it was a loss of job. Not been in this situation before. Probably panicking with whole cost of living crisis then this. Need to take a deep breath and figure it out I guess.

Spoonie_Turtle

Tax credits are calculated based on annual income, so anything your husband has earned during this tax year is still counted.

You could have a look at Universal Credit which is calculated monthly based on actual income - but you should be aware that if you claim UC you can never go back to Tax Credits.

How much you would be entitled to depends on your whole circumstances (including any savings); a benefits calculation would tell you what, if any, entitlement you would likely have.
https://www.entitledto.co.uk/
https://benefits-calculator.turn2us.org.uk/

poppy12345

Did your tax credits end last year? If so then you can't start a new claim because all areas are now UC so it would be this you will need to claim.

beattock

No award this year but still active.

calcotti

poppy12345 said:

Did your tax credits end last year?

A nil award doesn’t end a tax credit claim and will be reassessed if changes claim.

OP, tax credits are normally based on year’s earnings. In your case if your joint income for this year is now going to be more than £2500 below last year then your claim should be reassessed on this year’s income. However it is a joint claim and is based on your joint income - provided you are working enough hours to qualify.

As poppy says you could compare your possible entitlement for UC instead.

sheramber

Is you husband claiming  new style JSA , which is contribution based and taxable.

The amount is included in the income assessment for tax credits.