Confused by Working Families Tax Credit

[happyinherts]

I've been offered a part time job today which I shall probably accept. I have been out of the job market - and not looking - for 22 years and now circumstances have changed and I have amazingly been successful at gaining employment.

It's 20 hours a week BUT term time only with no pay during school hols. I've worked out that with Easter, Summer and Christmas plus three x half terms, that amounts to around 12 to 13 weeks, ie nearly 4 months unpaid work.

I also notice that to apply for working families tax credit, it's based on the year previous. This employment would begin on April 1st 2011, so in effect is that right that I wouldn't have to write down my wage on the form as it says 2009 - 2010????

And also although it's 20 hours x £7 per hour, because of the 3 months unpaid per year, it doesn't actually equate to £140 per week x 52, does it? I'd have to declare 20 x 7 x 40 or something? But then the form says 2009 - 2010 - confused?????

No you declare the number of hours you work on teh weeks you work even if you don't work every week. So you will be working 20 hours per week.

Your employer is obliged to pay you holiday pay and bank holidays. This will be on a pro rata basis proobably as you don't work 52 weeks a year.
Have you asked them how they deal with holiday pay? IME a lot of term time only employers tend to give you this over the summer holidays to ease the 6 week gap.

If you've not worked previously they'll calculate your entitlement to WTC/CTC based on what you expect to earn this year.

Are you a lone parent? YOu can get excellent advise from teh lone parent advisor at the job centre if you are. You can also keep some of your benefits for 4 weeks to tide you over till pay day if you have been out of work for a significant time. And you may also be entitled to a discretionary grant to help you buy work clothes for example. So it's well worth going along to see your lone parent advisor if this applies to you.
If you get council tax benefit or housing benefit you will need to inform the council when you start working as these will likely be reduced when you start earning.

Thanks Gillybean2

No, i'm not a lone parent and I have no dealings with job centre.

My husband was made redundant and as there wasn't much around and not getting any younger took a 16 hour job at minimum wage. We have a 16 year old son, so income topped up by working families tax credit.

I've not been able to work as I've cared for elderly grandmother without pay. I've been told that this 20 hour job would still entitle us a family to working families tax credit because the joint income of both of us would be under £13K. We dont get housing benefit as house is ours and mortgage paid, and council tax benefit wasn't worth filling out the form for and finding all the documents for.

It's a council job farmed out to an employment agency. They give 4 weeks holiday after a certain period of time. I was only offered this at 5pm on Friday so haven't accepted it yet. So I'm guessing as they entitle benefit on what I expect to earn this year I base it on £140 x 48 weeks

Thanks Gillybean2

No, i'm not a lone parent and I have no dealings with job centre.

My husband was made redundant and as there wasn't much around and not getting any younger took a 16 hour job at minimum wage. We have a 16 year old son, so income topped up by working families tax credit.

I've not been able to work as I've cared for elderly grandmother without pay. I've been told that this 20 hour job would still entitle us a family to working families tax credit because the joint income of both of us would be under £13K. We dont get housing benefit as house is ours and mortgage paid, and council tax benefit wasn't worth filling out the form for and finding all the documents for.

It's a council job farmed out to an employment agency. They give 4 weeks holiday after a certain period of time. I was only offered this at 5pm on Friday so haven't accepted it yet. So I'm guessing as they entitle benefit on what I expect to earn this year I base it on £140 x 48 weeks

You need to pin them down on how many weeks you will actually work/be paid to work (including any paid holidays out of term time). Because it very much depends on how they measure 'term time' and when you are expected to take your annual leave as to how much you will earn.

If it is as per most state school's term time that is usually 30 weeks (52weeks-13weeks school hols).

However you may not be requrired to work the teacher training days (depending on your job), so could be another 5 days (1 week) deducted. Or you may be required to take them as annual leave.
And it could even mean 3 terms of 10 weeks if it's private school or univerity term time they're working too.

You then need to find out if your holiday entitlement is on top of that (ie if you're a TA or something like that schools don't usually let you take time off in term time). SO oaid holiday is in addition to those working weeks.
However it may be that with your job your holiday is expected to be taken within those term time hours. So you'll only get paid for those working weeks.

So you need to ask:

1. What are my actual hours - specifically how many weeks a year.
2. How does time off/holidays work (ie in term time or additiuonal to hours in 1) )
3. What is your gross annual pay going to be. And is the figure they quote pro rata and if it is what will you actually get in the year.

Your calculation should be £7 x 20hours x No of weeks.

Until you know the actual number of weeks you can't work out what it is, but you can guestimate it.
so it could be
39 wks - £5460
39working +4 wks paid hol - £6020
30 wks - £4200
Hence why it's important you ask the 3 questions above.

Sorry typo above - meant to saay 39 weeks for most state schools, not 30