Working Tax Credit?

katskorner

Can someone help me work out whether I should be entitled to WTC? I already get CTC but don't seem to be able to get WTC. What is the minimum criteria you have to meet?

I work from home on a self-employment basis for approx 10-16 hours a week. It varies. OH is in full time employment. We have one toddler - hence the CTC.

BenefitMaster

Has hubby applied for WTC... Remember that while you may be a couple, you both need to apply for the combined benefit, since he's the one who's working.

Destiny33

Might be wrong but i think wtc you have to work a minimum of 20 hours?

BenefitMaster

Hubby is working full time...

irs101

BenefitMaster

Hubby will have had to have applied for WTC anyway in order to get the CTC - both WTC and CTC are joint claims and are claimed on a single form. It wouldn't be possible for them to claim CTC and not WTC (unless they put in an incorrect claim).

Katskorner

You are eligible for WTC, but my guess is that you aren't entitled to anything because your income is too high (so the WTC has been tapered to zero). Do you and your hubby jointly earn more than £16K?

irs

Dee123_2

https://www.taxcredits.inlandrevenue.gov.uk/HomeIR.aspx

On the left hand side is the link "Do I Qualify?". Answer some questions and it will tell you. I believe it is 30 hours, btw, but maybe it will work in your husbands name.

BenefitMaster

Hold on - I singly earn substantially more than 16k, have a partner and 1 child, and we get almost £6000 a year in Tax Credits.

irs101

BenefitMaster wrote:

Hold on - I singly earn substantially more than 16k, have a partner and 1 child, and we get almost £6000 a year in Tax Credits.

£16k is the point at much most families stop being entitled to WTC - although they will still be entitled to CTC.

What is that £6,000 made up of? Presumably it's a mixture of CTC and WTC because for most families with one child, maximum CTC is £2,241.10 per year. So something else must be going on in your award.

1. Do you have a child under 1 or a disabled child? You would get more CTC.
2. Are you or your partner disabled? You would get more WTC
3. Are you claiming childcare costs? You would get more WTC.
4. Is your current (provisional) award based on an income much lower than your actual income? You are being overpaid.
5. Have HMRC mucked up?

Or any combination of the above.

You need to understand what is driving your award, because over 90% of working families can not receive WTC if they earn more than £16k. The only reasons you can be entitled to WTC on incomes higher than £16k is if there is a disabled adult or you have eligible childcare costs.

irs

katskorner

We do jointly earn above £16K but below £40K. Hubby works full time and he put in a claim and we got 0 WTC. I just don't understand why that is? Also can you claim for childcare costs if you work above 16 hours a week and hubby full time? If I could do this then I would increase my hours as I would be able to afford the childcare then.

There must be an upper threshold for WTC and childcare element as our income seems too high to qualify. But I am confused by the claim above of £6k in tax credits for someone who seems like they have a similar background to us.

BenefitMaster

Tax credits not being my forte, I see why we have more. Partner is disabled, one IB and full rate DLA care and mobility. Second baby on way, and childcare costs.

I really do need to upgrade my TC knowledge.

irs101

WTC is for the lowest incomes - including those without children (so they wouldn't want to extend it too high).

You add up all the elements you are entitled to and they are then tapered according to your income. They taper WTC before CTC - hence why you get some CTC but no WTC.

The Childcare element (which you would be eligible for) is part of WTC, and so is tapered after the main WTC but before CTC, so whether you would benefit once again depends on your exact income (including the extra money you might earn) and the weekly childcare costs. You can claim up to 70% of your costs. The other thing to bear in mind about the childcare element is that you can still benefit from it even if it has been tapered to zero - as you may get more CTC than if you had no childcare.

As with main WTC and the child element of CTC, there are no thresholds as such where you can categorically say if you will get childcare help or not - it varies depending on the precise circumstances. I'm happy to help if you let me have your income and any additional income you would earn if you worked more hours. Or you can try for yourself at www.entitledto.co.uk

irs