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Original poster

Child tax credits and starting work

62 replies

user1479732438 · 21/11/2016 13:02

Hello, somebody please help me. From what I've read on the HMRC website, your current award for tax credits runs up until the April of the next year. If your income goes up, you can either tell them the change or wait until you get your renewal pack in April. Now, my partner was claiming jsa but has now found work, will child tax credits stop now he has signed off jsa? Or will we continue to recieve and pay back any that is owed next year? I'm worried they will stop as we won't see any of his wages soon as it is 1month arrears and obviously Christmas is coming so I'm relying on my tax credits and child benefit to tide me over until he gets payed. Thanks for any help xx

OP posts:
Original poster
user1479732438 · 21/11/2016 13:04

You don't have to tell HMRC about the following changes, but it might be in your interests to do so, as you may be entitled to a higher tax credit award:

Your income goes down

Your income goes up. This may not affect your current award, but it will affect how much you get next year. If you get paid too much because you delay telling HMRC about any changes, you will be asked to pay back any tax credits overpaid. See Tax credits overpayments

Copy and pasted from website

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Original poster
user1479732438 · 21/11/2016 13:05

Does it depend on how much you earn? For example if you go from claiming jsa to earning £25,000 a year will they stop automatically or continue until the end of tax year?

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Babyroobs · 21/11/2016 13:48

The amount of child tax credits you get will depend on your household income ( so you and your husband's wages) and how many children you have. This is calculated over the previous tax year ( April to April). It is best to keep them updated or you may end up with an overpayment and have to pay them back.
If you have one child and don't pay any childcare costs then the threshold for tax credits is roughly £26k. If your husband has worked part of the year then they will calculate what he has earnt, and what tax credits you have already received. I'm not sure whether JSA is counted as income. Do you work also?

Original poster
user1479732438 · 21/11/2016 14:06

Hello, thanks so much for replying. We have two children ages 18months and 3 years, I stay at home and care for them full time. My partner had been out of work from October 2015-November 2016, I find it all really confusing these tax credits lol will we still be awarded based on the year we had £0 income? Or now that he's started work this month will the stop the payments, will the jsa notify them if we choose not to until the renewal in April??

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Original poster
user1479732438 · 21/11/2016 14:07

Jsa is counted as taxable income xx

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gillybeanz · 21/11/2016 14:10

You need to call them and tell them of any changes, otherwise overpayment soon adds up between now and April. You could end up having to pay it
back.
If you still have a claim they take it back from your current award.
If you are no longer entitled to TC they expect it back almost immediately.
It's always best to tell them any changes asap.
HTH

gillybeanz · 21/11/2016 14:12

Sorry, missed a bit.
They will continue, well they did with us.

Original poster
user1479732438 · 21/11/2016 14:13

What I was thinking of doing is waiting until January when we have some money coming in and then telling them, as the tax credits will tide me over for Christmas and food nappies etc etc. We have no means of lending any money between this time to live.

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Original poster
user1479732438 · 21/11/2016 14:17

Hi gillybeanz, do you mean continue payments until the tax year ends in April? If you don't mind me asking, what were your circumstances? Did you start work and not tell them, did you have to repay? This is the first time we had claimed any tax credits, starting from august 2016, should have claimed from October 2015 when we became unemployed but we didn't. X

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elvisola · 21/11/2016 14:22

JSA won't tell them anything. Call and update them once you get your first salary. It's tempting to continue to claim till April but you will have a big overpayment and they are hard work to deal with.

Original poster
user1479732438 · 21/11/2016 14:28

Hi elvisola, thanks everyone for getting back with helpful advice. I'm just so worried everyday that they will stop the payments and I'll be in the 💩 for Christmas. Hopefully I'll be ok until we notify them, so I take it that once we notify them we won't be further entitled to tax credits?? I think my partner will bring home around £30k xx

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bloodyteenagers · 21/11/2016 14:30

You cannot wait until January to tel them about the change in circumstances. Same with Housing Benefit.
You have 30 days to inform them of any changes.
Also unless JSA has really changed you get a run on payment.
If you said to them you didn't know, it's not good enough as the information is on their websites.

Original poster
user1479732438 · 21/11/2016 14:33

Bloody teenagers, it says on their website that it is your choice to tell them if an increase in income or wait until they send you your renewal pack?? What is a run on payment?

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bloodyteenagers · 21/11/2016 15:04

I don't know where you are reading that, but www.gov.uk/changes-affect-tax-credits at the bottom clearly states 30 days. You should also be aware that not reporting changes can lead to fines.

Run on payment is something the job centre coach can help with. It's a run on of some benefits including a payment of job seekers. They can also fast track working tax credits, and do a run on payment with housing benefit. He needs to talk to his advisor when he signs off.

Original poster
user1479732438 · 21/11/2016 15:11

You should also tell the Tax Credit Office as soon as possible if your:

child is certified blind (or no longer certified)
income changes - tell the Tax Credit Office immediately if it goes up by £2,500 or more
working hours increase to 30 hours or more a week (combined if you’re in a couple with children)
There’s no deadline to report these changes.

It says the same thing at the bottom of the page in the link you have sent me. He has already signed off jsa, we didn't know anything about a run on payment. I don't see any harm in continuing until January, it says in black and white that there is no deadline to report changes. I don't see any other choice to support my family until then especially with Christmas coming.

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Piehunter · 21/11/2016 15:20

"income changes - tell the Tax Credit Office immediately if it goes up by £2,500 or more"

You don't have to inform them immediately if the increase is less than that, but it obviously will be more than £2,500. That page was last updated on the 2nd November THIS year. You can be fined up to £300 if you don't report it within this time frame. Seriously, tax credit overpayments are a nightmare. Also, taxable jsa is included in calculations so what he's been paid since April this year will be taken into account for your payments, as well as his new salary.

Piehunter · 21/11/2016 15:22

The bit you've copied and pasted SAYS you must report immediately if the increase is over £2,500. There's no deadline if it's less than that.

TantrumsAndBalloons · 21/11/2016 15:25

You just copied and pasted the part that says you need to inform them straight away if it goes up by more than £2500. Which it obviously will if your dp is bringing home 30k

You need to tell housing benefit as well. You won't be able to carry on claiming and then informing them in January, it's pretty obvious that you need to do this now

Original poster
user1479732438 · 21/11/2016 15:26

I understand what your saying but I really don't see any other way, if they don't stop the payments then I don't have much choice but to wait and tell them later on

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bloodyteenagers · 21/11/2016 15:26

*Deadline for reporting

The deadline for reporting these changes is 30 days, but you’ll reduce the amount you’re overpaid if you report them as soon as they happen.

If you receive tax credits you’re not entitled to, you’ll need to repay the money. You may also have to pay a penalty.

You could be fined up to £300 if you don’t report a change within 30 days and up to £3,000 if you give wrong information carelessly or on purpose.*

What was the point in asking for advice if you are going to ignore this and still wait until January to tell them the change in circumstance?
And yes actually Job Centre will probably let them know about the changes. Just like Tax credits let them know and other departments know about changes.

Original poster
user1479732438 · 21/11/2016 15:27

So what do you suggest I do to support my children for the next month or so and over Christmas??

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bloodyteenagers · 21/11/2016 15:29

He should have discussed all of this before he stopped his claim. So what is HE going to do to help resolve this over the next month?

Original poster
user1479732438 · 21/11/2016 15:30

Bloodyteenagers, it sounds like your having a bad day. No need to be so rude, I'm asking for advice! That is your opinion, other people have said that I should tell them in January if that's my only choice, by then we will be able to afford to pay it back. I have no other means of income

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Original poster
user1479732438 · 21/11/2016 15:32

I'd prefer YOU not to comment on my post anymore bloody teenagers. He's working????? Like I said he has to work 1month in hand

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AndNowItsSeven · 21/11/2016 15:33

The tax credits are averaged over the year so you will still receive tax credits as your dh won't earn anything near the threshold between now and April. Your tax credits award will not change nor will there be an overpayment.