Tax credits and only one of us working?

[pinkpiggy]

Can anyone help?

I am currently working 16 hours a week but there are talks of redundancies at work .

DH works 50 hours a week and earns around £16,000 profit per year (self employed). If I lost my job, would we still be entitled to tax credits or do we BOTH need to be working?

Also, with the new universal credit system, would be both need to work?

Yes you would be entitled.
I'm not working at the moment, but dp works full time and we get some.
I think it's only if the sole earner works less than 24 hours per week that you lose entitlement.

Thank you. Do you know if that's likely to change under the universal credit system? Is it only if you have a child under 5 or children under 16? Trying to get through to helping but can't get through!

Not sure about universal credit but ive gone back to work and dp isnt working at the minute and we get working tax credit because i work over 24hrs a week
I think you would lose working tax because youre a couple and u work 16 hrs.

I just called tax credits and pressed the options for paments spent about 13minutes on hold and was then put through to talk to someone.

I think once Universal credit comes in , if your children are over school aged you will be expected to be looking for work in order to get tax credits. but I think it derpends on your partners income and the hours you would be expected to work are dependent upon the age of your youngest child.

So it looks like we would be able to still get working tax credit until my youngest starts school? Then i would be expected to work 16 hours a week to claim? It's confusing as noone seems sure of the rules!

Could you not work for you dh

I don't work right now and we still get both ctc and wtc because DP works 37 hours.

I am not completely sure but from what I have read, under UC a couple must earn NMW x 35 hours x 2. If they don't then they will have to look for work etc.

From Oct NMW will be £6.31. Times that by 70 you get £22968 per year. So if your household income is below that you will have to prove you are looking for a full time job.

That's for people with kids over 12. People with kids between 5 and 12 I think are worked out with the second person only required to work 24 hours at NMW.

Hope that makes sense. Like I say I can't be totally sure, but that's how I understand it.

So I would have to work 24 hours under the UC system? Like thousands of families up and down the country, I don't know how on earth I am going to be able to do that and find/fund childcare for 3 children!

Thank you for the posts giving advice.

Wannabedomesticgoddess is right about the UC thresholds. The reasoning being that when your children are of school age, they will spend 35 hrs/week in school, therefore you wouldn't need that much childcare to work 24 hrs.

What on the earth does your husband do for £5.60 per hour self employed (50 hours a week for £16k)?

Maybe he needs to find another job (better paying or at least less hours for the same money) or is some of his income undeclared?

Apologies - my last post sounded harsh.

Could you work for your dh and raise his rates so that you both get a decent income. I cant think of a single SE trade or consultant fee that would pay what he is getting.

Does his 50 hours include travel to and from his first and last job? Or is it actually time on the job so therefore he actually works less.

Still trying to get my head around his low income for so many hours self employed.

He can't find another job, the employment market is grim where we are. He is a self employed window fitter and he is at the yard 6am, loads up, travel time to a job, does job then goes to dump to unload. He leaves the house at 5.30am and average get home time is 8pm. So, no I cant work for him!