Can someone explain tax credits to me please?

[ConfuciousSayWhat]

We've had provisional notification of our award and it includes a £3000 disability element which I neither asked for nor claimed. I do however claim PIP. Anyway this tips our new claim to in excess of £10,000! which really doesn't sit right with me as we both work (although low income jobs)

Have the thresholds changed this year? Have allowances increased?

DWP will have informed HMRC of your PIP and as you work(over 16 hours I assume?) you are entitled to the disability element.

Are all of the details correct on the form? If so then you're entitlement is correct. Just make sure your household income is correct and let them know of any changes

Tax credits can be very generous under certain circumstances. I remember when my dd was entitled to DLA for a short while many many years ago and our tax credits went up hugely. I really couldn't believe how much they were giving us at the time.

That's a bit offensive to other disabled workers that it doesn't " sit right with you" but don't worry I think it's getting scrapped when UC comes into place.

How on earth is it being insulting? It's a huge sum of money they're now giving to us simply because I claim PIP. Im grateful for it just it's far more than I ever claimed even as a single parent which is why it doesn't seem right.

By saying it doesn't sit right it's implying you , and therefore by default other disabled workers shouldn't be entitled to it.
I am glad you are getting extra tax credits, disabled is almost always a barrier to earning potential.

• having a disability not disabled phone went weird there sorry.

Under universal credit we would be no worse off

It is. I work reduced hours as a result however PIP makes up the shortfall.

Initially yes due to transitional protection however any change of circumstances and you will be worse off.

I obviously misunderstood the tone of your post op, please don't feel bad about an extra tax credits it is right that you receive them.

Well that goes for the current system too. Any change in circumstances we notify them of and our allowances get changed accordingly

Fair enough, this is all new to me. I hadn't realised how many extras come with a pip claim! I was just glad I could now get a cleaner

No I don't mean that op, I mean a change if circumstances such as moving house, changing jobs and earning less or the same amount etc

Oh!

are you income details correct?
both DH and I work (very low pay - minimum wage) and we have a child on high rate DLA (I.e. getting the severe disability element) we get only a small fraction of what you are getting. even with the disability element, 10k doesn't sound quite right to me.

I agree with Butter, £10k a year is over £800 a month which I do not think can be correct with no kids, unless you are counting the PIP payments in that amount too?

As long as you both have informed the tax office of everything you earn (and the hours you earn them), then you should be OK.

Having said that - you might want to double-check, so that you aren't faced with any repayments. Also bear in mind that it's calculated by your income over a year, not month-by-month - if you are getting tax credits now on a low-paid job, but suddenly got, say, a £250k pa job writing a weekly column in the Telegraph, you would have to pay back tax credits awarded this year even though when you were paid them you did need that money.