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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

The amount of benefit I am getting in staggeringly high...

106 replies

Workreturner · 04/11/2018 21:23

AIBU to be flabbergasted.

So I have just returned to work. Previously I received JSA and CTC and child benefit. Totalled approximate best part of £900.

I have returned to work. It’s well paid. 24 hours a week for £24k a year. I immediately updated local job benefits office and HMRC.

I have just been online on my HMRC account and my jaw hit the floor.

I won’t be receiving JSA but I will be receiving £308 in WTC and £417 in CTC. Plus £137 child benefit. Pretty much exactly the same as when I wasn’t in work.
Plus I will get help towards child care costs.

It seems an awful lot of money on top of a decent salary.

I’m a single mother of two primary children.

Does this seem right to you or those in similar situations tell me it’s wrong. I would like to avoid the scenario whereby I have to repay.

OP posts:
Scientistic · 04/11/2018 21:27

That doesn't seem right to me. 2k a month take home to then get over 700 tax credits? Are you even taxed 700 on 2k a month?

Howhot · 04/11/2018 21:29

Is it because it's based off the previous years earnings perhaps? I'd get in touch and make sure it's all accurate. I've been over paid before despite being obsessive about my details online being up to date and it was not fun!

leghoul · 04/11/2018 21:30

The tax credits are for the year before basically aren't they? So if you earn less the year before, or nothing at all, then start working, it will give you a lot more than the following year. This is my hazy recall of this.

Original poster
Workreturner · 04/11/2018 21:30

It’s not £2k take home.
It’s roughly £1700

My HMRC has my correct salary details.

I just can’t believe that I’m now in employment but benefits essentially the same.

OP posts:
Original poster
Workreturner · 04/11/2018 21:32

No it’s all correct in term of how they have displayed the information.

They have given my estimated income until April 2018, which is correct.
I can then we the next 3 months benefits payments that have been awarded to me. WTC is new obviously as previously didn’t work and it was JSA

OP posts:
Original poster
Workreturner · 04/11/2018 21:32

Sorry estimated until April 2019

OP posts:
Antigon · 04/11/2018 21:32

2k a month take home

Does 24kpa work out to 2kpm take home pay? Confused

Original poster
Workreturner · 04/11/2018 21:33

I’ll give them a buzz tomorrow.

It is the same figure on the benefit gov benefit calculators (I’ve done all three available!)

I just can’t believe it

OP posts:
Original poster
Workreturner · 04/11/2018 21:33

Income tax?
National insurance?

OP posts:
HollowTalk · 04/11/2018 21:33

I'd put some of that into savings just in case, OP!

Original poster
Workreturner · 04/11/2018 21:34

@Antigon

Gross versus net

OP posts:
Original poster
Workreturner · 04/11/2018 21:34

Oh I will be anyway!!

OP posts:
BathFullOfEels · 04/11/2018 21:34

Not unless you don’t pay tax or ni anti

Original poster
Workreturner · 04/11/2018 21:36

I suppose it is the single parent scenario. And although it is a good salary of £40k, because only pro rata £24k i suppose it falls within various thresholds for benefits

OP posts:
RippleEffects · 04/11/2018 21:37

It's not a 24k salary if you've just returned . If it's your salary Nov- April it's 12k. There's an earnings increase disregard which I think is 2.5k so they see it as 9.5k earnings.

Atalune · 04/11/2018 21:37

Work pays.

Who knew?! Grin

Call HMRC and talk it through just to be safe and sure.

Mamabearx4 · 04/11/2018 21:38

It is based on last years intially plus ypur current wage untill april. So from april 2018 to april2019 you will have only earned for 4 months. So next years will be higher aswell. Thisis what happened when my husband returned to work after redundancy

twiglet · 04/11/2018 21:38

Be careful and double chec/keep some of it aside etc my friend just received a letter demanding return of 10k of benefits which they told her she was eligible for and she had declared everything etc. Even started threatening her with benefit fraud!

Thankfully she kept all correspondence etc but will still have to pay it back.

PodgeBod · 04/11/2018 21:39

In my experience the reduction in housing benefit and council tax benefit outweighed the working tax credit but I was earning less then you.

RippleEffects · 04/11/2018 21:39

Sorry that's 6 months. Tax year ends beginning of April so Oct- start April would be 6 months Nov - April would be 5 months

Blackness78 · 04/11/2018 21:39

It's because you're part-time.

user1494066152 · 04/11/2018 21:41

I am a lone parent with 2 dependant children on 22k and get 45 quid a week in child tax credit or working tax credit can't remember which plus the child benefit last year was more as it was my first year full time and I think they work in arrears maybe? I clear about 1300 in wages so the extra is very helpful. I think you may find next year will be less after this years p60 and yes they had my expected earning too etc but I'm still in less this year

GunpowderGelatine · 04/11/2018 21:41

I think my worry would be OP is that, come April 2019, they'll be asking you to pay a lot of that back

Original poster
Workreturner · 04/11/2018 21:49

So system thinks I earn £15k rather than £24k

Ah that makes sense

Any idea how benefits will fall when they factor in the extra £7k (the extra less income tax)

OP posts:
Antigon · 04/11/2018 21:49

Gross versus net

But take home pay is net pay.