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

Janie23 · 19 June 2012 at 1:04PM

Hi

I wonder if you can help me please.

I started 'signing on' at the job centre in February 2012, filled in the forms etc. I was then told that I had not paid enough NI contributions in tax years ending Mar 2010 and Mar 2011 for contribution based JSA. I am currently disputing this and my tribunal is set for Jul 2012. My appeal papers said that I had paid sufficient in y/e 2010 but that I had not paid any NI contributions in y/e 2011. I know that this is patently untrue as I worked (at the same salary as 2010) from Apr-Nov in that tax year.

My question is, how do I know how much NI I paid in this tax year and how much is needed to be eligible for contribution based JSA? I only have my P45 from my ex-employer showing how much tax I paid. I was told by the HR department that there would be no P60 as I left part way through the tax year.

I would just like to have any useful information to hand before I attend the tribunal.

Many thanks in advance!

CAB_Birmingham_representative · 20 June 2012 at 12:05PM

Dear Janie23

Thank you for your query.

In relation to your question regarding your N.I. contributions you can contact the National Insurance Cointributions Office on 0845 302 1479 or access their website http;//www.hmrc.gov.uk/nic. Their opening times are Monday to Friday 8.00 am to 5.00pm.

The office may be able to provide information on your N.I. contributions although you may be asked to provide evidence that the number is yours by providing for example a wage slip stating your number.

They may be able to provide you with a statement identifying any incomplete N.I contribution years and how much you need to pay to make up the amount if you need to make a claim for contribution based benefit. If you have been refused as it appears to be the case on these grounds you can request specific information relating to those periods of time

In relation to your second query regarding the amount of earnings at which you started to pay Class 1 N.I. contributions and therefore eligible for contribution based JSA. You needed initially to have paid Class 1 N.I. contributtion in at least one of the last two tax years before the year you are claiming the benefit for

The lower earning threshold details at which you paid Class1 contributions can be found on the following website
http://www.hmrc.gov.uk/rates/nic.htm

We understand that you are in the process of appealing the decision of the DWP if you require assistance in this please contact your local Bureau.

Regards

Birmingham Citizens Advice Bureau

Janie23 · 21 June 2012 at 11:44AM

Many thanks for your help, much appreciated.

metalsmurf · 23 June 2012 at 9:06PM

Hi,
I have just left the army after 22 years on end of contract and returned to the UK. I am currently on an unpaid work placement to gain the necessary experience to pass my Gas Safe qualification, once this is done, around October, I intend to go self employed. My wife had to give her job up as we were based in Germany, she has written proof from the MOD, and is about to claim contribution based JSA. I submitted a claim but was told at the interveiw I am not entitled as I am not available for paid employment. I understand this but was given no information about any other entitlements. I am in receipt of a pension and received a terminal grant.

Regards,

mynameistallulah · 23 June 2012 at 9:22PM

metalsmurf wrote: »

Hi,
I have just left the army after 22 years on end of contract and returned to the UK. I am currently on an unpaid work placement to gain the necessary experience to pass my Gas Safe qualification, once this is done, around October, I intend to go self employed. My wife had to give her job up as we were based in Germany, she has written proof from the MOD, and is about to claim contribution based JSA. I submitted a claim but was told at the interveiw I am not entitled as I am not available for paid employment. I understand this but was given no information about any other entitlements. I am in receipt of a pension and received a terminal grant.

Regards,

The JCP are correct, you are not eligible for benefits whilst on unpaid training. You can claim housing benefit and council tax benefit as a household, but your pension and any capital will be taken into account in the calculation.

MrsGeee · 24 June 2012 at 11:14AM

Hi,

Me and my husband are expecting and both work full time. When we have a baby it is unlikely that I will be able to return to work as we both work shifts so the cost of childcare will be to high. I have completed a calculator on the web though for tax credits we could be entitled to and it took my income into account for last year and thus we went over the treshold. My husband earns 16000 before tax so this is what we have to live off. If I quit my job after maternity leave will it take last years income into account so we will not be entitled to tax credits or will it take my current income which would be zero in to account. I am quite worried at the moment so any help most appreciated, We could get by with tax credits however without we will find it a real struggle although not as bad a having to pay childcare at nearly my wage eeek!

SqueekyMouse · 25 June 2012 at 8:09AM

I'm married, we have 1 child and I have been made redundant. My husband works 37 hours a week and earns just over 19K, would I be entitled to claim Jobseeker's allowance? If so do you have any idea how much I'd get?

Also:
When filling in my Tax Credit renewal form, it inferred that if I claimed JSA then the amount of tax credits paid may decrease. Is this correct?

We only get Child tax credits if that matters at all.

If it is the case then do you know how much the Tax credit payments are reduced? Is the reduction equal to the payments of JSA, so we'd end up getting the same overall? Or is it just a nominal reduction?

Thanks

kezia · 25 June 2012 at 9:42AM

Hi

A little confused about my tax credits.... Was single with 1 child claiming tax credits. New partner moved in part way through tax year and tax credits went down due to his income. Should the Tax office have taken his income as from the april (start of tax year but before we were together) or from the actual date he moved in to make a combined income from the new claim? They asked for his income from the april before we made joint claim. Surely this gives us a higher combined income then we had? We have a £500+ over payment now. Thank you

CAB_Birmingham_representative · 26 June 2012 at 10:10AM

Hi Metalsmurf,

Thank you for your enquiry.

As you are currently training on an unpaid basis and as we understand it, if your pension has come into affect, you may fail to meet the eligibility criteria for JSA. However, this is dependant upon the amount of pension and terminal grant you are receiving.

Housing Benefit and Council Tax benefit may be awarded depending on how much rent you pay, what income you have coming in and where you live. You will need to contact your local authority to apply.

For further information on your entitlements to other benefits and help with income maximization, you may wish to contact the Royal British Legion (RBL). The RBL assist members of the armed forces, veterans and their families. Tel: 08457 725 725 http://www.britishlegion.org.uk/

As you mentioned the possibility of self employment, you may also be interested in an organization named ‘Civvy Street’. Civvy Street is a website for serving and former members of the UK Armed services and their dependants. It offers free advice about resettlement into civilian life and work. They may also be able to provide loans and grants from a government funded scheme to help start a business. You can access their website on http://www.civvystreet.org/

We hope you find this information useful.

Kind regards,

Birmingham CAB

CAB_Birmingham_representative · 26 June 2012 at 10:23AM

MrsGeee wrote: »

Hi,

Me and my husband are expecting and both work full time. When we have a baby it is unlikely that I will be able to return to work as we both work shifts so the cost of childcare will be to high. I have completed a calculator on the web though for tax credits we could be entitled to and it took my income into account for last year and thus we went over the treshold. My husband earns 16000 before tax so this is what we have to live off. If I quit my job after maternity leave will it take last years income into account so we will not be entitled to tax credits or will it take my current income which would be zero in to account. I am quite worried at the moment so any help most appreciated, We could get by with tax credits however without we will find it a real struggle although not as bad a having to pay childcare at nearly my wage eeek!

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

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

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