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Tax credits change in circumstances

19 replies

purpleme12 · 07/02/2019 21:11

Does anyone know... If I increased my hours would they automatically put me on universal credit?

OP posts:
Hwory · 07/02/2019 21:14

You should be given a choice - remain on adjusted Working Tax Credit or claim Universal Credit if you will be better off.

purpleme12 · 07/02/2019 21:19

Oh I see I didn't know they have you choices.
I don't want to go into universal credit cos of what everyone says about it.
How do you even know if you'll get less?

OP posts:
SingaSong12 · 07/02/2019 21:26

If you are already on tax credits just increasing your hours will not mean you have to apply for universal credit. You have a duty to inform if you elwill earn £2500 more or less then you did last tax year. You may want to report change anyway, particularly if you increase hours. Here is a table of triggers to move to universal credit. You can use the calculator to see if you may be better off

www.entitledto.co.uk/help/changes_that_trigger_Universal_Credit

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Myusernameismud · 07/02/2019 21:28

In my experience, once the utter stress of setting it all up is over we are significantly better off on Universal Credit than we ever were on tax credits. They can work it out for you, and tell you which will be better for you.

purpleme12 · 07/02/2019 21:43

Do you mean if I ring the tax credits they'll work out how much I'd get on universal credit?

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Myusernameismud · 07/02/2019 21:56

No you'll have to go into the jobcentre for that, or you can check entitledto website and do it on there

megletthesecond · 07/02/2019 21:58

I've been wondering this too. I daren't change my job or increase my hours unless I'm forced too. UC is too risky.

purpleme12 · 07/02/2019 21:59

Ok do I need my p60 to work this out? Just cos this year's p60 which obviously hasn't come out yet will actually be more than last year's p60. And I don't know how much it will be

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purpleme12 · 07/02/2019 22:00

Yes that's what I was wondering. I've been reading on here about what everyone says about universal credit!

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Jassyjac · 07/02/2019 22:00

We'll be substantially worse off on UC so I would tread very carefully if I were you.

donajimena · 07/02/2019 22:00

myuser how so? I'm terrified of UC your post is heartening

purpleme12 · 07/02/2019 23:01

Anyone else any experience/advice?

It sounds like more people say you'll be worse off

OP posts:
Myusernameismud · 08/02/2019 07:40

So for a quick calculation, the basic rate for 2 adults if you weren't in work is £498. The amount you would get for 2 children is £509, and our rent is £675 which they pay all of, even though Local Housing allowance is only £498. You're immediately better off just through that alone. That adds up to a total of £1682. That is what we would get if neither of us worked. Considering we'd have to pay rent and council tax plus all bills out of that, it isn't great. But once you're working, it gets better.

DH takes home £2250 (after all deductions including pension) the first £198 is disregarded so £2052 is the figure they'll use. They take 63p for every £ you earn over that disregarded amount. To work that out you need to do a bit of maths but it's fairly straightforward.
0.63x2052 = £1292.76
They then subtract that from the original figure at the top so
1682-1292=£390

So on top of DH wages, we get £390 UC every month. That will go up in April as the disregarded amount increases.
I started a new job last month so that figure has gone down, I only work one day a week and take home about 410, but we're still getting about 140 UC. You will always be better off in work on UC, and once it's sorted out, it's so much easier than tax credits. You don't have to report your income because hmrc do it. And if you earn different amounts every month, that's fine. You don't have to keep calling to report changes.

I do understand why everyone is so stressy about it. DH and I were a 'test case', we were transferred long before it was officially rolled out in our area and it was horrendous. Nobody knew what they were doing, our claim took 8 weeks to process and we fell into serious rent arrears. DH had been made redundant a while back and when all his reduncany money had been spent (on living and rent!) we had to claim. And looking back, I'm glad we did.
We also, because we were transferred to early, have the very rare 'transitional protection' which means both DCs are still eligible for free school meals until they leave year 11. And although we don't currently use them, it means their schools are still getting pupil premium for them, which is a good thing. And I know that if something were to happen, and one of us lost their job, that transitional protection is still in place. Sadly, that doesn't apply to new claims.

So TL:DR is this. If you're out of work, UC probably isn't going to be any better for you, but for the average 2 parent, 2 child family in work like us, it's great. Which makes a change, because so far every other tory policy has been designed to fuck us over.
We are Theresa's proverbial JAMs!

Myusernameismud · 08/02/2019 07:45

Transferred *so early.

Just as a quick side note, our dear chancellor announced that the disregarded amount was going up in April, from 198 to 248 and that meant working families would be better off by x amount. However, the personal tax allowance is also going up, which is good for everyone but also sneaky because once you factor in extra income from that, you'll be better off by about 18 a month. Sneaky sneaky. Better off still, but not by the amount they said!

purpleme12 · 08/02/2019 07:57

I'm a single parent with one child I don't know if that will make me better off or not

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purpleme12 · 08/02/2019 07:57

Maths is not my strong point

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Myusernameismud · 08/02/2019 07:59

Entitled to will do the maths for you, you won't need your p60, just your take home pay and rent details.

Myusernameismud · 08/02/2019 09:19

Also worth noting is that if you earn less than £7400 annually, your children will be eligible for free school meals, even if you weren't eligible previously because you claimed working tax credits. If at any point before 2022, your earnings go above that threshold, they will retain that entitlement until the end of that current phase of education (primary or secondary). So for example, if you have a child in year 5 and you're earning less than 7400, he or she will be eligible for FSM until he finishes year 11, regardless of any change in income during that time. This has the added benefit of ensuring they will also get free travel to secondary school, if your LA uses FSM as their criteria.

BitchQueen90 · 08/02/2019 09:23

I increased my working hours 6 months ago and wasn't moved over to UC.

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