a benefits question...

[boschy]

Actually not AIBU, more how does this work?

Went through the directgov benefits calculator yesterday, and we seem to be entitled to claim rather a lot - so much so that I will have to redo it as it doesnt seem possible. (Never claimed before).

BUT my question is: how do you cope if your income fluctuates?

I have a basic freelance income and at the moment nothing else in sight apart from one project which will be billable in July, meaning I will get paid in August. Obviously I'm looking for more work but the current climate is not very positive.

So for May, June and July it appears we would be entitled to claim, probably not in August but then again from September onwards.

How does it work?? I cant find anything useful on the website...

I think your income is split over the year, and the likes of tax credits is done on last years income. I think its a bit backwards but it does mean that the TC doesn't fluctuate when your income does. I think your best bet would be to ring and explain your circumstances and see what they say

I think slimjim is right. They may also hold back a proportion of the payment and pay it at the end if the year if there's uncertainty so there shouldn't be an issue with overpayments.

They also do that with a big change in estimated income so when DH switched from working in the IT industry to being a TA as I went onto mat leave, our income dropped by well over 50% so they kept back about 3 months worth of payments until the end of the financial year when we could confirm our new income levels.

If you are talking about child tax credits, it is based on your last years income with a cherry on top. If your income changes and goes either up or down you let them know. It is pointless telling them until you are sure of your income.

Incidentally I have always found tax credit helpline to be really helpful.

It does seem a bit odd but TC is based on the previous year's earnings, you have to provide them with an as close to accurate estimate as possible, when the following year if your income massively exceeds that they will reduce your payments and/or ask you to repay any overpayments.

It may have changed since I first claimed but (for example) say you earned 15k last year, they would pay you, say, £50 a week.

If this year you earn 17k instead of 15, they might reduce your payments and say, well since you earnt 17k we should have only paid you £25 a week and will ask you to repay the extra.

Something like that I think?

They don't ask you for payslips or anything so you don't have to prove how much you earn on a month to month basis it's the total over the year that matters :)

thanks all, I have spent a hideous morning working out income and relevant expenditure for 2011/2012 so at least what I can say I earnt last year - about 3x as much as currently projected for 2012/13. who knows, it might all come right - but tbh I can see some very lean months ahead so I need to try and get this sorted.

according to directgov we appear to qualify for WTC, CTC and some council tax reduction... I'd rather be working!!

You can claim TC based on current years projected earnings too.

Yes - you have to tell them last years earnings but they do ask for your projected earnings for this year and if the 2 are significantly different use the latter in the calculation.