Redundancy and tax credits

peppapig14

Me and partner claim tax credits , and I have been made redundant. Recieved redundancy pay from employee 15th December.
When I inform tax credits will we be switched to universal credits as it will only be my partner working until I start another job 

calcotti

If you are claiming Working Tax Credits only and if you are both without disabilities then you remain entitled to WTC as long as one of you works for at least 30 hours/week. If you are claiming Child Tax Credits the requirement differs, see
https://www.gov.uk/working-tax-credit

You are treated as still in workfor 4 weeks from your job ending.
https://www.gov.uk/working-tax-credit/further-information

You cannot be switched to UC. If you no longer qualify for WTC then they would end but you will only get UC if you apply for it.

peppapig14

calcotti said:

If you are claiming Working Tax Credits only and if you are both without disabilities then you remain entitled to WTC as long as one of you works for at least 30 hours/week. If you are claiming Child Tax Credits the requirement differs, see
https://www.gov.uk/working-tax-credit

You are treated as still in workfor 4 weeks from your job ending.
https://www.gov.uk/working-tax-credit/further-information

You cannot be switched to UC. If you no longer qualify for WTC then they would end but you will only get UC if you apply for it.

Thank you
So yes we claim working tax credits as we have 1 child
Am I right in thinking our award will just be based on partners income - he works 23.5 hrs but always overtime so at least 25 hrs weekly, , and then wen I get a job my hrs and income will just be readied and the amount of wrc will obviously go down?

calcotti

peppapig14 said:

Am I right in thinking our award will just be based on partners income - he works 23.5 hrs but always overtime so at least 25 hrs weekly, , and then wen I get a job my hrs and income will just be readied and the amount of wrc will obviously go down?

The award is based on your joint income - obviously this means that if you have no income then it is based on just her income. However Tax Credits are calculated on an annual basis, not on your current weekly income. They are normally calculated on your previous tax year’s income. There will only be an adjustment to the amount of Tax Credits paid if you think that your joint income for 2022-23 differs from 2021-22 by more than £2500. 

If you are intending to look for work and provide you have been in continuous employment up to now you can apply new style JSA which will pay you £77/week for 26 weeks (goes up in April). You will have to demonstrate to DWP that you are spending 35 hours/week looking for work. New style JSA is taxable income and will count for Tax Credits.

peppapig14

calcotti said:

peppapig14 said:

Am I right in thinking our award will just be based on partners income - he works 23.5 hrs but always overtime so at least 25 hrs weekly, , and then wen I get a job my hrs and income will just be readied and the amount of wrc will obviously go down?

The award is based on your joint income - obviously this means that if you have no income then it is based on just her income. However Tax Credits are calculated on an annual basis, not on your current weekly income. They are normally calculated on your previous tax year’s income. There will only be an adjustment to the amount of Tax Credits paid if you think that your joint income for 2022-23 differs from 2021-22 by more than £2500. 

If you are intending to look for work and provide you have been in continuous employment up to now you can apply new style JSA which will pay you £77/week for 26 weeks (goes up in April). You will have to demonstrate to DWP that you are spending 35 hours/week looking for work. New style JSA is taxable income and will count for Tax Credits.

Thank you this is very helpful