Will we get tax credits?

[herewegoagainxyz]

My dh is likely to be made redundant any day soon. He'll probably get a year's basic, but no bonuses, so around £100k lump sum.

Our mortgage is nowpaid off & I work part time. I reckon our bills, running cars, food etc will be about ££2,400 per month, which leaves a shortfall between that and my income of around £850 per month. We'll have to dip into the lump sum for that (it will, in theory, last us a good few years so if dh doesn't find anything else, by that time he'll be close to taking his pension (at 60).

Soooo, I realise we won't get tax credits straight away as last year dh earned £180k, but will we get them after he's been on JSA for a year?

Also, and I'm really really hoping the answer is no, will the fact that we have redundancy money stashed away mean that we'll never be entitiled to tax credits?

{shock]

? That's helpful Mosschops.

I tnink taht your income has to be £40,000 or less iirc

best point of contact is CAB or the benefits calculator website

i think it is "Entitled to.com"

Thanks, will mosey over to Entitled to.

oh Im sorry did you want me to be helpful??? I thought you just wanted to put £100k in the bank and keep it 'safe' whilst you claimed benefits, or did I get that wrong?

It very much depends on how much your savings earn in interest.

You will get tax credits, but if your income from the savings (i.e. interest) is more than £300 you will have your tax credits reduced.

mosschops, the JSA is dependent on NI contributions. If the OPs DH has made sufficient contributions, he is eligible to claim JSA while he looks for a new job.

Not talking bout JSA, talking bout tax credits

OP, it is going to be very unlikely that you will get enough in Tax credits to cover your shortfall. Additionally, the JSA will only last 6 months, then the savings you have will prevent you getting the income based JSA.

Tax credits are means tested. If the OP's family qualifies, they are entitled to claim.

I'm sorry to hear that your DH might lose his job. Regardless of your circumstances, that is not nice.

However, I very much doubt that you would qualify for the reasons the others have given; or at least, only for a year or so.

You would not be awarded tax credits this year because of your DH's income last year; and you would need to confirm that redundancy money is not counted as income, otherwise,this would mean that you would've earned too much for the next tax year after that.

In a couple of tax years' time it looks likely that this government will reduce the threshhold for tax credits to £25,000. Judging by what you have written above, your income sounds as if it is very close to this sum.

So, all in all, I would be surprised if you would qualify at any point for tax credits.

Mosschops, my dh pays £72,000 per year in tax and NI and has been working at that level for over 20 years, so has contributed almost one and a half million quid to the pot.

I don't feel remotely bad about getting £401 per month back for a while.

if hes been paying 72k a year in tax for the last 20 years then hes obviously earning shit loads of money and you could have saved enough to not need bloody tax credits couldnt you.

Yeah yeah my dh works bloody hard too and if he lost his job with £100k payout my first question would not be 'can we claim tax credits'

Sorry but I'm with mosschops.

Am that you are worrying about claiming benefits when you have £100k in the bank! Tax credits are there for people who need more money to live off, not for people to add to their massive savings!

I may be wrong but I thought all the time that you have more than £500 in the bank then you are not entitled to claim anything.

Going off to have a look!

Of the £100K payout, doesn't only the first £30K not count as income (and is not subject to tax/ni) while the remaining £70K will count towards income and be taxable?

Amothersplace, yes, I think you're right, butI've rounded up with shares which we can cash in early.

This is very nosey of me, but I have to ask, how is your monthly outgoing £2400 per month if your mortgage is paid off??!!

That seems a massive amount to me, had to ask otherwise it would have played on my mind!

You can earn up to £50k+ and get tax credits as our total income is about £50k and we get £545 a year.

Have to say that if you have £100,000 as a lump sum and have paid off your mortgage, I feel you should be all right really. Unless of course you have big debts. What are your bills for - ours are about that but including housing costs.

Still looking but also I think that if you are earning then your wages will also be deducted from your jobseekers allowance?! I know that when I was working clearing £800 a month then my p (now xp) tried to claim and he was not entitled to any money as I earned too much (admittedly that was 7 years ago though)

I was going to ask the same as ILovePonyo - that's our monthly outgoing WITH mortgage!

"Contribution-based Jobseeker's Allowance is not affected by any savings you have. However, if you have part-time earnings or an occupational or personal pension, this may affect how much contribution-based JSA you get. For example, the amount of contribution-based JSA that you get is cut pound for pound for any occupational pension that is over £50 a week. If you earn too much, you will not get contribution-based Jobseeker's Allowance at all.

You only get contribution-based Jobseeker's Allowance for yourself, so you do not get an amount for your partner if you are claiming as a member of a couple. However, you may get income-based Jobseeker's Allowance on top of your contribution-based Jobseeker's Allowance if you have a partner, or because of your personal circumstances - for example, if you are disabled or caring for a disabled person or have housing costs.

Contribution-based Jobseeker's Allowance is paid for a maximum of six months. After that, you may get income-based Jobseeker's Allowance, depending on your income and savings"

From citizens advice.

We don't have any debts, but have worked out a presumption that we'll need:

Food 400
petrol to work for me 200
DD expenses (sports clubs, pocket money, school trips, clothe etc) 150
Council tax £286
Coal 80
logs 35
oil 50
elec 70
Bt/BB 50
car repairs for 2 ageing cars 150
car tax
40
car ins 70
dh petrol 40
house mtce 200 (big house & garden)
350 unexpected stuff
250 b'days, xmas, meals out, modest hol
I got that to about £2400 pm

Thanks for all advice btw