Tax Credits

[SoWorriedPleaseHelp]

Hi

Does any-one know when or if I can claim tax credits? I currently earn £13,000 and have two children under 16 years.

I work 17.5 hrs a week and there is no scope to increase these hours.

My DH is currently employed but has a real possibility of being sacked for Gross Misconduct within the next week.

Just trying to get a plan in action!

How much does your dh earn? The cut off point when you have two children in £32000 (joint).

If he loses his job you won't be able to claim as you need to be doing 24 hours between you but I'm sure there's other help, he can sign on etc

If your dh loses his job then you can still claim child tax credits just not working tax credits.

They use previous tax year income so if you're under the threshold then might qualify. Check with them though as you will have a big drop in income.

We are well over the threshold as he earns £60,000 at present.

So does that mean even though our income will only be £13,000 from next month we will not get any help at all?

Was hoping to get something - even it was just free school dinners for my boys so I know that at least they have had a decent meal

From their website it says if your income drops by £2500 then your tax credits may go up.

You can only get free school meals if you get child tax credits only and earn under £16190, and dont receive working tax credit.

Call the helpline. They will help you.

I don't know about free school dinners as mine are younger.

Unless your total hours add up to at least 24 hours you can't get tax credits.

Your dh can sign on and get JSA.

That's all I know I'm afraid. Hopefully someone will have some better advice for you. You could always try CAB

Oh you could go to entitledto.gov.uk and put in your details it might give you a good idea of what you can get.

Are you renting or do you own? Have you got any savings? Are there any part time jobs around your dh can do to bump up your hours until he finds something more permanent? He only needs to do 6.5 hours a week for you to claim tax credits

You should qualify for child tax credits if your DH loses his job but I'm not sure about working tax credits. It used to be you had to work at least 16 hours but it might have changed.

Ah OK I didn't know it was different rules for Child tax credits (I don't get working tax credits). There's a tax credits calculator on the HMRC website

Apparently we are entitled to nothing

I really don't understand how that can be correct as they are using the figures from the last financial year and not what is the actual income now.

Try doing the calculator again but using just your wages and hours not your dh's. It can take a bit of time but they will usually help you out in extreme circumstances such as yours..

I put (guessing) similar details to yours in with 0 income for your dh. Hope you don't mind. It said you can get child tax credits not working tax credits. Ring the helpline. It will be worth it. Get the forms sent to you in readiness in case your dh does lose his job.

Yes good idea, get the pack sent through so if he loses his job you can send it off asap

Ring them as soon as you know too, with the date and they take that as 1st day of claim.

Unfortunately, they are right.

Last year, your income would have been £73,000 -way over threshold.

You are seeing it as follows:

If DH loses his job, my income is all we have. That means we have an income of £13,000 per year.

However, as we are in August, we are already 4 months into the financial year - 1/3 of the way through. 1/3 of your DH's income is c. £20,000.

This means that your income for this year will be £20,000 + £13,000= £33,000 - over the Child Tax Credits threshold still.

What is unfortunate, is that you have had your income 'front loaded', in that 3/4 of your income (if your DH goes out of work and stays out of work) has been paid to you in the first 1/3 of the year.

Incidentally, on a household income of £13,000 per year, you wouldn't qualify for Free School Meals. You have to be either on the top rate of Working Tax Credits (which you won't qualify for) or on JSA.

Pants

I think you can get help with mortgage interest payments through the benefit system, if that helps.

If the mortgage is paid, and you have some income from your job you may be ok?

We spoke to our mortgage company and they have refused to help as it is our own fault.

I don't think it is the mortgage company that helps - it is the benefit system that helps if you lose your job. You could ask at the council - give them a call.

If dh is being unfairly dismissed then of course you have reason to take action against the company dismissing him which could help.

If he is eligible for Jobseeker's Allowance then you may be able to claim Support for Mortgage Interest which will help with the interest element of the mortgage (you would still be liable for the capital repayments). If he is fired he may not be able to claim for up to 26 weeks, the job centre will look at what happened and will speak to his employer before making a decision.

It may be worth also posting in employment issues to see if there's anyone there who can advise re the gross misconduct aspect of it.

Many thanks everyone

I do have a thread in the employment section about Dh.

you may be be able to reclaim some overpaid tax but if he gets JSA you won't be eligible. Advice here www.hmrc.gov.uk/incometax/stop-work-refund.htm#2

We got nothing last year when my dh was unemployed we literally had nothing as I don't get paid over the summer holidays.