What classes as a change of circumstances Tax Cred
pbmatt
Posts: 80 Forumite
Hi all
Currently on Tax Credit however our area is now a full Universal Credit area. I know you have to move over to Universal if you have a change in circumstances but does that also mean if you have a reduction in income. My hours got cut at work last summer and I’m about £4K worse of because of it, I’m worried about reporting the change as I was left some inheritance (which is making up the £4k shortfall while I search for extra hours) and I would fall foul of the savings rule.
My question is does a reduction of income class as a change of circumstances and trigger a move over to Universal Credit.
Currently on Tax Credit however our area is now a full Universal Credit area. I know you have to move over to Universal if you have a change in circumstances but does that also mean if you have a reduction in income. My hours got cut at work last summer and I’m about £4K worse of because of it, I’m worried about reporting the change as I was left some inheritance (which is making up the £4k shortfall while I search for extra hours) and I would fall foul of the savings rule.
My question is does a reduction of income class as a change of circumstances and trigger a move over to Universal Credit.
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Comments
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https://www.welfare-benefits-unit.org.uk/wp-content/uploads/2016/03/What-triggers-a-claim-for-Universal-Credit-in-a-full-service-area.pdf
Only if your hours have reduced to below 16.
An income change should not trigger a move over to Universal Credit.
I'm assuming that the reduction in hours have not taken you below the minimum hours necessary to claim TC.Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.0 -
The income is not an issue here but the hours might be.
How many hours were you working and what did they cut them to? We would need to know your age, if you claim any of the disability elements, if you have children, a partner (their working hours) to know if it would trigger a move to UC.
Problem is, if it does impact on your tax credits, you are going to have a hefty tax credit overpayment if this hours change happened in the Summer and you haven't told HMRC.
IQ0 -
Icequeen99 wrote: »The income is not an issue here but the hours might be.
How many hours were you working and what did they cut them to? We would need to know your age, if you claim any of the disability elements, if you have children, a partner (their working hours) to know if it would trigger a move to UC.
Problem is, if it does impact on your tax credits, you are going to have a hefty tax credit overpayment if this hours change happened in the Summer and you haven't told HMRC.
IQ
Thanks both that have replied.
Hours were cut from 25 to 20, I have found another part time job but it’s only 5 or 6 hours once every 3 weeks or so. So I guess I will tell them I do 21 hours a week now. I’m 42, have 2 kids and my partner works 25 hours a week (but at a school, term time only). We are fortunate not to have to claim for any disability’s.0 -
Thanks both that have replied.
Hours were cut from 25 to 20, I have found another part time job but it’s only 5 or 6 hours once every 3 weeks or so. So I guess I will tell them I do 21 hours a week now. I’m 42, have 2 kids and my partner works 25 hours a week (but at a school, term time only). We are fortunate not to have to claim for any disability’s.
In that case, the hours change won't affect your tax credits. The income change might of course. It won't trigger a need to claim UC>
IQ0 -
Icequeen99 wrote: »In that case, the hours change won't affect your tax credits. The income change might of course. It won't trigger a need to claim UC>
IQ
Thank you for your help, do you mean the income change still wont trigger a UC claim or just the hours change wont. Sorry if that's a dumb question but the whole system confuses me.0 -
Thank you for your help, do you mean the income change still wont trigger a UC claim or just the hours change wont. Sorry if that's a dumb question but the whole system confuses me.
Sorry, neither will trigger a UC claim but the change in income might affect your tax credits amount either this year or next.
IQ0 -
What about if some is claiming only tax credits and carers allowance but then careers allowance stops and just claims tax credits will this trigger a move to UC0
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Hi just wondering if anyone can help me, a few years ago I applied for working tax credit as my husband was unemployed but not entitled to any benefit after his 26 weeks on Unemployment. We filled in all forms etc and were awarded £20 per month, however when time came to fill in renewal form we were informed they had made a mistake and had to pay back the money we received. Since then I have had a form every year to tell me we are not entitled to any benefit. Then last week I find a payment in my bank from WTC for a substantial amount of money, no letter or info to say why. The only change in our circumstance is my husband now claims the higher element of PIPS. I finally recieved a letter yesterday saying it is because of this that we are now entitled. But I have not let them know or filled in any forms, so am confused as to how they know and to where they get the figures from that they are basing the award on. I feel sure they will be asking for this money back again.
Sorry for the long post.0 -
It's always better to start your own post rather than adding a question on the end of another person thread.hotwinehouse wrote: »Hi just wondering if anyone can help me, a few years ago I applied for working tax credit as my husband was unemployed but not entitled to any benefit after his 26 weeks on Unemployment. We filled in all forms etc and were awarded £20 per month, however when time came to fill in renewal form we were informed they had made a mistake and had to pay back the money we received. Since then I have had a form every year to tell me we are not entitled to any benefit. Then last week I find a payment in my bank from WTC for a substantial amount of money, no letter or info to say why. The only change in our circumstance is my husband now claims the higher element of PIPS. I finally recieved a letter yesterday saying it is because of this that we are now entitled. But I have not let them know or filled in any forms, so am confused as to how they know and to where they get the figures from that they are basing the award on. I feel sure they will be asking for this money back again.
Sorry for the long post.
DWP and HMRC are linked and this is most likely why they knew. If you're worried then ring HMRC tomorrow morning and ask. I'm not sure why you've left it this long without ringing if you're that worried.0 -
Icequeen99 wrote: »Sorry, neither will trigger a UC claim but the change in income might affect your tax credits amount either this year or next.
IQ
Thank you ever so much.
I have updated it online last night and checked it today and it says my actual payment amount has gone down by about 15%, doesn’t seem right but I guess I will just have to wait and see what happens.0
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