Claiming benefits for the first time - can anyone talk me through it?

[lechatnoir]

Until recently we earned above the threshold for any type of benefits but now earn far less and could really do with the help if not long term then at least whilst I establish my new business (childminding). However, when I input the figures to calculate our entitlement, it keeps asking about past earnings which have no bearing on current earnings & say we aren't entitled to anything!! Am I doing something really dim & obviously wrong here?

Also, how does it work if you're getting benefits but income is fluctuating - do you notify them of my earnings each month or will I have to pay back in April any overpayment!?
Sorry if these are really daft questions but I'm feeling a bit lost and really need to get this sorted asap as our overdraft is increasing by the day!!!

Thanks
LCN

If you're on a lower income rather than none at all you'll probably qualify for Tax Credits. These are based on the previous year's income (i.e. up to April 2012) unless your cirumstances have changed significantly, which they clearly have. In which case they use your current income. If your income fluctuates you should make a best guess using a weekly/monthly average and then declare the actual amount once you have your end of year totals in April 2013. If your income goes up significantly mid-year, let the Tax Credt people know via the helpline. Tax Credits are calculated on a sliding scale but, if your actual is only out by a few hundred over the whole year, it probably won't affect the award at all.

How to claim Tax Credits..... the DirectGov website is always a good place to look for advice and forms to download. The HMRC website similarly. The Tax Credit Helpline can get busy at peak times but staff are usually quite helpful 0844 856 4312

For other benefits the Turn2Us Benefits Calculator will point you in the right direction. Use your today's income details rather than last financial year for an accurate assessment.

Thank you so much (far clearer than the official guidance!!)
LCN