To want to cry at the benefit system complication

[Piratepete1]

I posted a message a few days ago about my partner being made redundant. After the initial shock we are now looking at what benefits we could get and are in a complete mess.

Up until now my DH has earned over any threshold for any tax credits and I am a carer for our disabled DD. Now DH has been offered a little minimum wage job by a relative (works out at £500 a month) for 37 hours a week so he could take that instead of claiming JSA (he would get 6 months contribution based). We are not sure what the best thing to do is.

We have been told that if DH takes the job we qualify for Child tax credit and working tax credit but I didn't think we did as I am not working, only claiming carers. Also when I put it into an online calculator it says we are entitled to nothing as DH earned a lot in 2015/16. We could split the £500 a month job so we both earn £250 a month and both work over 16 hours. But would I lose carers? And he wouldn't get JSA. And then if DH manages to get a well paid job again in 6 months say then we will have to pay all the tax credit back!

Can anyone shed any light? We have given up.

For tax credits, if there is a significant difference between last year's wage and this (more than £2000) that is taken into consideration. You only need one earner to claim WTC, you need both earning to claim the child care element.

I can't advise about the carers allowance though as I don't know the rules for it. I'm sure there will be others around that do.

If DH works 37 hours per week for £500 per month that works out at just £3.38 per hour - well below minimum wage. Assuming your DH is over 25 he's entitled to the new national living wage of £7.20 per hour - I would tell your relative that he needs to pay true minimum wage for a minimum wage job.

You can earn up to £110 each week without losing your careers allowance.
Because you get careers allowance only one of you needs to be working at least 16 hours to get working tax credit.
If your husband is working full time for minimum wage that should be more than £500 per month.
Because this years income is much lower than last years the tax credit office should use this years income but they will add on an extra £2500 (they do this as standard when your income has gone down).

It would not be legal to be employed for 37 hours per week for £500 - this is way below minimum wage

Just phone them up and explain I gave up work last yr to care for my disabled son we also earnt to much for tax credits they will intially give you an nill award but when you explain your change in circumstances they will calculate what you are entitled too.

The Entitled To link on the Martin Lewis website let's you put this year's income in too, so that should give you a better idea.
But yes, £500 a month for full-time hrs seems wrong

Min wage, assuming DH is over 25, would work out at around £1100 per month before tax. Where are you getting the £500 from?

I think I heard on the radio the other day that it is now basically impossible to get carers allowance and wtc because 16hrs at minimum wage will always now be over the threshold for carers. But I've never had to claim this so don't know how it works. good luck op.

I get minimum wage, don't work more than 24 hours a week and earn more than £500! I get 6.90 as I'm not over 25

If your child is getting high rate care DLA you will get a disability premium tax credit too, the online calulator might not take that into consideration so still apply.

think I heard on the radio the other day that it is now basically impossible to get carers allowance and wtc because 16hrs at minimum wage will always now be over the threshold for carers.

That is for single parents. The issue is actually that anyone working 16 hours at minimum wage will be earning over £110 per week and will therefore lose all of their carers allowance. It is different for those in a couple where one works and one claims carers allowance because your partners income isn't taken into account when calculating your entitlement to carers allowance.

One of the discrepancies since the living wage was brought in. With nmw of 6.70 you could work 16 hours per week and earn under £110 limit for carers allowance and still get wtc etc.

Now 16 hours a week at nlw is £115.20 per week - they did not raise the earnings limit for carers allowance in april so you lose the carers allowance or work under 16 hours and lose wtc.

Btw you can claim certain expenses against carers allowance to bring warnings below £110.