Nil hour contract (from 16 hours) & Tax Credits

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andrew71
andrew71 Posts: 1,227 Forumite
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in Benefits & tax credits
I'm asking this on behalf of my wife.
My wife is currently employed on a 16 hour contract. (She's worked for the employee for over 20 years). Recently she's decided it may be time for a change.
There's a good chance of a job but we both have some questions.
The job is a nil hour contract. Though it is in the care industry and there are the hours available.
Also our daughter is finishing college this July and starting University this September. We currently get Working Tax Credits and Child Tax Credits and myself I get ESA (income related)

Our questions are. How does a nil hour contract affect Tax Credits (I'm presuming Child Tax Credits would stop but will WTC?)? Would we need to inform Tax Credits after each week? If there's a large drop in our income then she says it may mean her having to work more than 16 hours
Thank you.

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  • Comms69
    Comms69 Posts: 14,229 Forumite
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    I suspect you'll move to Universal Credit.
  • Togepi
    Togepi Posts: 1 Newbie
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    If her usual hours worked remain at least 16 hours pw (presumably this is her requirement due to you getting a disability benefit) you can continue to receive working tax credit, there is leeway if she drops below on the odd week provided the usual pattern is 16+. Wtc are based on actual working hours not what is written in contract.
    You can visit revenuebenefits advice website to check tax credit requirements, or CAB site.
  • Icequeen99
    Icequeen99 Posts: 3,775 Forumite
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    Togepi wrote: »
    If her usual hours worked remain at least 16 hours pw (presumably this is her requirement due to you getting a disability benefit) you can continue to receive working tax credit, there is leeway if she drops below on the odd week provided the usual pattern is 16+. Wtc are based on actual working hours not what is written in contract.
    You can visit revenuebenefits advice website to check tax credit requirements, or CAB site.

    This is only correct whilst CTC is in payment. CTC will stop on 31 August (I assume you have no other children). At that point, your wife will need to work 30 hours in order to continue getting WTC. She only qualifies now at 16 because you are responsible for a child/young person and you are incapacitated (otherwise it would be 24 hours). However, once your daughter moves off the claim, then your wife will need to work 30 hours if you are unable to work.

    IQ
  • calcotti
    calcotti Posts: 15,696 Forumite
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    Icequeen99 wrote: »
    However, once your daughter moves off the claim, then your wife will need to work 30 hours if you are unable to work.

    Slight qualification to this - unless your wife is aged over 60 in which case the requirement would be 16 hours.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • Icequeen99
    Icequeen99 Posts: 3,775 Forumite
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    calcotti wrote: »
    Slight qualification to this - unless your wife is aged over 60 in which case the requirement would be 16 hours.

    yes, that's a good point, I assumed she was under 60 but if not then she could continue with 16 hours instead of 30.

    IQ
  • calcotti
    calcotti Posts: 15,696 Forumite
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    Icequeen99 wrote: »
    ... I assumed she was under 60 ...

    Given age of daughter that does seem likely but I thought I'd better add the qualification just in case ... and for the benefit of anybody else reading the thread.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
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