starting work after 11 years on incapacity benefit.

sarebear_2

my husband is considering starting work after 11 years on ib.
we have been told we would be eligable for working tax credits at a good level as he gets dla. does anyone know if they will assess him on his wages he would be earning approx 14500, or his ib for last year approx 6000 ?
i am just worried that they would say he has been over paid next year if they used the ib . does anyone know how it would work ?

hotblu

Hello sarebear,

WTC would be based on your py household income and the disregard for TC is £25,000, which means you can earn what you earnt last year (£6000), plus a further £25,000 in the cy and your tax credits wouldn't change, however it would affect your entitlement for the following year as it would be based on this years income. I hope this helps and I haven't confused you too much with the £25,000 disregard.

Regards

Hotblu

sarebear_2

so if they use last years figures would that mean we would have to pay some back next year as he would earn about 8000 more this year ? what exactly is the 25000 disregard ?

stazi

If he will earn under £15K, he may also qaulaify for RTWC.
More info here-
http://www.jobcentreplus.gov.uk/JCP/Customers/Programmesandservices/Pathways_to_work/index.html

John51

Make sure he can quit work with no loss of benefits.

As my health declined, I was going from working to on the sick and back again like a yo-yo. I'd quit work and my health would improve after a rest so I'd go back to work. Once working I'd get sick again so forced to stop but deeper in debt than when I started.

I did it for about 5 years off and on before I accepted that I couldn't work again. Here's hoping he can manage to work ok and full marks to him for trying.

sarebear_2

i do worry , but he says he is determined to return to work. but i am just worried that we would end up having to pay some money back to tax credits as they assess it on the previous year, and he would earn about £8000 more than he was getting on incapacity benefit.

sarebear_2

does anyone know if we would have to pay anything back next year on tax credits if they assess us on £6000 incapacity benefit for 2007-2008 and my husband then earns £14500 if he goes back to work ?

HappyDuck_2

hotblu wrote: »

Hello sarebear,

WTC would be based on your py household income and the disregard for TC is £25,000, which means you can earn what you earnt last year (£6000), plus a further £25,000 in the cy and your tax credits wouldn't change, however it would affect your entitlement for the following year as it would be based on this years income. I hope this helps and I haven't confused you too much with the £25,000 disregard.

Regards

Hotblu

Hi, as hotblu says TC's will use the £6k for the 08/09 entitlment, then use the £14500 to calc the 09/10 ent, so as long as you advise before 05/04/09 this yrs inc will be 14500 the payments will be correct & wont cause an OP. Just make sure you keep everything up to date & call the helpline if concerned / confused.

mrsthrifty_2

sarebear wrote: »

i do worry , but he says he is determined to return to work. but i am just worried that we would end up having to pay some money back to tax credits as they assess it on the previous year, and he would earn about £8000 more than he was getting on incapacity benefit.

If you havnt already I would suggest making an appointment with the Benefits advisor at your nearest Job Seekers Plus office.
I went through something like this last year with my Brother after years off work. Their advise and help was invaluable.
They will input your figures and tell you roughly what tax credits to expect, they will advise on other things available in helping you return to the workplace for example there is a up to £250 grant available through IS/IB, JSP offer up to £100 help towards tools, work clothes etc on production of receipts, there is also help available with a further months add on for rent/mortgage and council tax after coming off the system , obviously all these depend on your payments now and what you are entitled but they are there and if you dont know to ask you dont always get.
Confirmation was also issued after starting work that he could go back on to his benefits in the event of illness up to 104 weeks after starting work without starting a claim from scrath again.
Hope this helps a little and good luck