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PAYE Umbrella & Tax Credits

(1 Post)
taxidiot Thu 08-Oct-09 10:40:18

I really havent a clue when it comes to tax matters so please bear with me.

DH is currently paid using a PAYE Umbrella company which his agency said to use.

Recently we have hit really hard times after dh hurt his back and was unable to work for a little while and surprise surprise his insurance company said that although he had hurt it at work it was a repetitive strain injury rather than an accident and wouldnt pay out.

DH's work collegue has suggested that we can apply for tax credits as the award is calculated using the figures on his P60. Although this would really help us out of a hole, I am a bit dubious. Surely this can't be right. I should point out that dh isnt a particularly high earner anyway.

Can anyone advise me further on this. I can't get through to the helpline number, it keeps cutting me off (although my landline isnt the most reliable after dd pulled the phone across the room) but I dont want to do anything that could get us into trouble.

Thanks.

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