Tax credits & benefits for people in work or looking for work

CAB_Birmingham_representative · 26 June 2012 at 11:12AM

SqueekyMouse

Thank you for your enquiry

Regarding your question on your entitlement to J.S.A. you may be entitled to Contribution Based JSA depending on your class I National Insurance contributions made over the past two years. If you are entitled this is paid for a period of 6 months before you are re-assessed and if applicable placed on income based JSA.This would then depend on your total household income and would be affected by your Husbands salary.

Your Tax Credits can be affected by any income from a contribution based JSA and we would refer you to the HMRC website for further information on this. This can be accessed through hmrc.gov.uk./tax credits.

Regarding your question as to the calculation of income and how this will be affected by your change in income you can use the tax credit calculator on the above hmrc website by typing in to the search engine "Tax Calculator."for an estimate. You could also ring the Tax Credit Helpline on 03453003900 for further clarification of this.

Regards

Birningham Citizens Advice Bureau

CAB_Birmingham_representative · 26 June 2012 at 12:30PM

Hi Kezia,

Having read your enquiry we feel that there is a factsheet which would answer most of your questions. Please click on the following HMRC link which will take you directly to ‘Tax credits when your partner leaves or your new partner moves in’

http://www.hmrc.gov.uk/taxcredits/keep-up-to-date/changes-affect/family-change/partner-change.htm

In regards to the overpayment, you have a few options, you may ‘dispute’ the decision which means that you would like the HMRC to look at their decision again.

Alternatively, you may appeal the decision. This should be done within 30 days from the date of the decision letter. You can appeal by putting it in writing and clearly stating why you believe their decision to be wrong. If you would like some assistance with this, please contact your local Citizens Advice Bureau.

Please note ‘You can't, appeal against a decision to ask you to pay back a correct overpayment. But you can appeal if you think the amount of tax credits you were awarded in the first place was wrong’

The following link will provide you with more in-depth information on how to appeal or dispute tax credit overpayments:

advicenow.org.uk/taxcreditoverpayments

Kind regards,

Birmingham CAB

metalsmurf · 26 June 2012 at 5:06PM

Thanks for your reply.

Icequeen99 · 27 June 2012 at 11:02AM

CAB_Birmingham_representative wrote: »

Dear MrsGeee

Thank you for your email.

When you first make a claim for Tax Credits, it will be calculated based on you and your partners income for the previous tax year (which is why they’ve taken your salary into account).

At the end of the tax year (April 5th) the HMRC will finalise your entitlement by comparing your current years income (the year you make the claim) with that of the previous tax year. If the current years income is less, your final entitlement is based on the current years income.

So, in essence, the HMRC will take your previous years income into account however, they will only use it to compare your current years income with. If your current year’s income is less than the previous year’s income (which in your case you stated as ‘nil’) then the HMRC should only take into account your current year’s income when calculating you and your husband’s entitlement to WTC.

The HMRC will only take your previous years income into account if your income has stayed the same or increased by £10,000.

If you have any further queries, please contact the Tax Credit Helpline on: 0345 300 3900.

Kind regards,

Birmingham CAB

Just to add to this, the CAB answer is correct but it fails to mention the £2,500 disregard which is important in your case. The first 2,500 of the fall in income from previous year to current year will be disregarded.

If the fall in income is less than 2,500 then previous year income will be used.

IQ

enabledebra · 27 June 2012 at 8:54PM

Icequeen99 wrote: »

Just to add to this, the CAB answer is correct but it fails to mention the £2,500 disregard which is important in your case. The first 2,500 of the fall in income from previous year to current year will be disregarded.

If the fall in income is less than 2,500 then previous year income will be used.

IQ

That's right- and the HMRC tax credits estimate calculator doesn't do it for you so you need to add the figure yourself if applicable- see here for how to use the calculator when you income will be lower in the current year http://www.hmrc.gov.uk/taxcredits/payments-entitlement/entitlement/question-how-much.htm#3

enabledebra · 27 June 2012 at 9:34PM

CAB_Birmingham_representative wrote: »

Hi Kezia,

Having read your enquiry we feel that there is a factsheet which would answer most of your questions. Please click on the following HMRC link which will take you directly to ‘Tax credits when your partner leaves or your new partner moves in’

http://www.hmrc.gov.uk/taxcredits/keep-up-to-date/changes-affect/family-change/partner-change.htm

In regards to the overpayment, you have a few options, you may ‘dispute’ the decision which means that you would like the HMRC to look at their decision again.

Alternatively, you may appeal the decision. This should be done within 30 days from the date of the decision letter. You can appeal by putting it in writing and clearly stating why you believe their decision to be wrong. If you would like some assistance with this, please contact your local Citizens Advice Bureau.

Please note ‘You can't, appeal against a decision to ask you to pay back a correct overpayment. But you can appeal if you think the amount of tax credits you were awarded in the first place was wrong’

The following link will provide you with more in-depth information on how to appeal or dispute tax credit overpayments:

advicenow.org.uk/taxcreditoverpayments

Kind regards,

Birmingham CAB

Just to give a bit more clarity about the steps to be taken if you want to challenge the decison(s) The difference between a dispute and an appeal and which process is appropriate can be found here
http://www.revenuebenefits.org.uk/tax-credits/guidance/how-to-deal-with-hmrc/appeals/starting-an-appeal/

HMRC will often try to guide a challenge down the dispute route incorrectly and may try to convince you an appeal is not needed. If you feel an appeal is appropriate make sure you insist on that process being used.

garfieldd · 12 July 2012 at 7:46PM

I am a single working (full time) male for your information. This actually is a generic benefit enquiry that I may post in other areas asking for advice.

It has almost been agreed that my son, aged 11 will come and live with me when and if I find a suitable property that will house both of us. Currently it is not possible for him to come and live with me as I am living in a rented room.

I have middle rate DLA, and my son is in receipt of the middle rate care and lower rate DLA.

I have had a benefit check if the above situation happens and it appears it is possible to rent privately with LHA supporting my income. Working/Child Tax Credits will also help.

However, my issue is that he may be going to a specialist school from September (Year 7). I am wondering how it would affect his DLA and my Tax Credit as well as my Housing Benefits? He may be coming home every weekend as that is the reason he is coming to live with me, as he needs a father figure to discipline him and teach him life skills (his mother is on benefits and I am only thinking he is becoming too smart to cave in to her and answers back). His mother is not able to cope with 3 other young children (only two of the four are mine).

Here are my questions

How will my WTC/CTC be affected?
How will his DLA be affected?
How will my Housing Benefit be affected?
Is there anything else I should be aware of?

Finally, how do I start with informing my council (which is a different council) to agree to my son to go to the specialist school which the other borough have already agreed to do? What is the process and how do I start if we decided to go ahead.

Many thanks

A

CAB_Birmingham_representative · 16 July 2012 at 5:23PM

garfieldd wrote: »

I am a single working (full time) male for your information. This actually is a generic benefit enquiry that I may post in other areas asking for advice.

It has almost been agreed that my son, aged 11 will come and live with me when and if I find a suitable property that will house both of us. Currently it is not possible for him to come and live with me as I am living in a rented room.

I have middle rate DLA, and my son is in receipt of the middle rate care and lower rate DLA.

I have had a benefit check if the above situation happens and it appears it is possible to rent privately with LHA supporting my income. Working/Child Tax Credits will also help.

However, my issue is that he may be going to a specialist school from September (Year 7). I am wondering how it would affect his DLA and my Tax Credit as well as my Housing Benefits? He may be coming home every weekend as that is the reason he is coming to live with me, as he needs a father figure to discipline him and teach him life skills (his mother is on benefits and I am only thinking he is becoming too smart to cave in to her and answers back). His mother is not able to cope with 3 other young children (only two of the four are mine).

Here are my questions
How will my WTC/CTC be affected?

How will his DLA be affected?

How will my Housing Benefit be affected?

Is there anything else I should be aware of?

Finally, how do I start with informing my council (which is a different council) to agree to my son to go to the specialist school which the other borough have already agreed to do? What is the process and how do I start if we decided to go ahead.

Many thanks

A

Dear Garfieldd

Thank you for your enquiry.

If you are currently receiving the basic element of Working Tax Credit (WTC) this should not change. You may however be entitled to other elements such as ‘the lone parent element’ if your son stays with you.

In order to receive Child Tax Credit (CTC) you must be able to show that you are ‘responsible’ for your son. Whether or not you are responsible for your son will depend on whether he normally lives with you. The term ‘normally’ allows for temporary/ occasional absences. Therefore, your son may still count as living with you even if he is away from home as long as you are the main carer.

Please bear in mind that you and the child’s mother can not claim Child Tax Credit for the same child. You will have to decide on who should get it.

For further information, you may need to contact the tax credit helpline on 0345 300 3900.

Disability Living Allowance (DLA) should still be paid to you on your son’s behalf but only during a temporary separation. If your son will be back home every weekend, it may not be an issue.

DLA does not count as income so it will not affect Housing Benefit.

If there are any changes to your circumstances, please notify the relevant benefit offices to prevent the risk of being overpaid. If your son’s mother is in receipt of child benefit, you will need to get this transferred into your name.

If you still require further assistance, it may be best for you to come into your local bureau. You can search for your nearest bureau and their opening times on:

http://www.citizensadvice.org.uk/

Kind regards,
Birmingham CAB

Getmeoutofdebt · 5 August 2012 at 11:08AM

Hi there,
I am in £25K of debt and no assets and am 5 months into a self managed debt management plan with the help of National Debtline / Cashflow. My husband has just has an accident and is hospitalised and is told it will be 6 months before he can walk / work again. He was only three weeks into a new job! His new boss isn't communicating with us and we are panicking about money. If he manages to get S.S.P through work, can he get anything else like tax credits or incapacity benefit? We are scared that without his wage we may go bankrupt. We were struggling on his full wage!
Many thanks

mynameistallulah · 5 August 2012 at 11:14AM

Getmeoutofdebt wrote: »

Hi there,
I am in £25K of debt and no assets and am 5 months into a self managed debt management plan with the help of National Debtline / Cashflow. My husband has just has an accident and is hospitalised and is told it will be 6 months before he can walk / work again. He was only three weeks into a new job! His new boss isn't communicating with us and we are panicking about money. If he manages to get S.S.P through work, can he get anything else like tax credits or incapacity benefit? We are scared that without his wage we may go bankrupt. We were struggling on his full wage!
Many thanks

Do you work? Your benefit entitlement will be based on your household income.

Tax credits & benefits for people in work or looking for work

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free