Housing benefit and adjustment to tax code

Hi,

Does anyone know how a tax code adjustment affect HB calculations? What happens if my gross income stays the same but my tax code gets adjusted by HMRC and I pay more tax? Should I expect my HB to increase?

Any advice would be greatly appreciated. Thanks.

Comments

  • [Deleted User]
    [Deleted User] Posts: 4,176 Forumite
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    mopixy wrote: »
    Hi,

    Does anyone know how a tax code adjustment affect HB calculations? What happens if my gross income stays the same but my tax code gets adjusted by HMRC and I pay more tax? Should I expect my HB to increase?

    Any advice would be greatly appreciated. Thanks.

    No because you are awarded benefits based on gross earnings, before tax not after.
  • mopixy
    mopixy Posts: 8 Forumite
    _shel wrote: »
    No because you are awarded benefits based on gross earnings, before tax not after.
    Thanks for your response.
    In my HB award letter I can see something like this:
    Income you told us about:
    Earnings                                                        Gross  £XXX
             Less Tax                                                      -   £XX
             Less National Insurance                              -  £XX  
             Less Disregarded Income                           -   £XX
    . . .
    . . .
    
    This is how they work out my excess income to be taken off the local housing allowance. Do you mean that they work out the tax figure themselves, regardless of what my payslip says?
  • [Deleted User]
    [Deleted User] Posts: 4,176 Forumite
    Name Dropper First Anniversary Photogenic First Post
    mopixy wrote: »
    Thanks for your response.
    In my HB award letter I can see something like this:
    Income you told us about:
    Earnings                                                        Gross  £XXX
             Less Tax                                                      -   £XX
             Less National Insurance                              -  £XX  
             Less Disregarded Income                           -   £XX
    . . .
    . . .
    
    This is how they work out my excess income to be taken off the local housing allowance. Do you mean that they work out the tax figure themselves, regardless of what my payslip says?

    I'm totally wrong http://www.southoxon.gov.uk/services-and-advice/council-tax-and-benefits/benefits/how-it-all-worked-out/your-income
  • Every £1 of extra tax taken increases your Housing Benefit by 65p.
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