Thread: WTC query

I wonder if someone can help.

My OH has been claiming IBJSA for a few years but only receives around £2.00 per week as I am working 30 hours a week and claim WTC so was informed he would not be entitled to the full amount.

I have just been speaking to the WTC people as they needed to know what dates he has been claiming IBJSA. I told them all year and they say it is impossible (1) that you can get IBJSA for that amount of time and (2) he should be receiving around £64.00 a week and then what would happen is that my WTC would then be disallowed.

I think this has happened the other way and by me getting WTC his IBJSA even though he is available for work and gets this pittance of an amount the full amount is disallowed.

Help I wont want the tax credits people thinking I am trying to pull a fast one.

As far as we know he has been claiming IBJSA for over 2 years - is that possible!

Originally Posted by hammyhound

As far as we know he has been claiming IBJSA for over 2 years - is that possible!

Not if you are working more than 24 hours per week, this automatically will disallow your partner from JSA(IB).

Otherwise then yes it is possible to be on JSA(IB) two years down the line, but your partner will have to comply with whatever requirements the Jobcentre impose on them such as weekly signing, attendace of training courses etc.

As for the amounts, your partner should be entitled to an allowance of £100.95 (the couple's allowance). This will be reduced by the income from your employment and tax credits received.

If HMRC Tax credits are suggesting that your partner should be getting an allowance of £64.30 per week, then they are assuming that this is a single JSA(IB) claim. It would also appear that they are assuming that your partner is in receipt of JSA(C) which is only payable for 26 weeks.

Should your partner be claiming as a single person, which I doubt that they are, then this would be fraud. Similarly, should your partner have not declared your actual hours worked as being in excess of 24 hours per week, this would also be viewed as an attempt to defraud the DWP as your partner would not be entitled to JSA(IB).

Both HMRC and DWP can check each others records to see what benefits or tax credits are in payment, how much tax you are paying on your income and NI comtributions for you and your partner. Both you and your partner will have agreed to this upon signing the relevant declarations for JSA and Tax credits.

Thanks for your informative reply.

He did tell the DWP what my hours were (more than 24) and they said his JSA would be reduced because of that and also that I received WTC. He will speak to them on Monday.

I really couldnt sleep last night because of it.

We have been honest from the start but it looks like from what you are saying either the DWP has made an error or I should not received tax credits for the last 2 years.

I know he could not claim a couple's allowance because I was working.

Is he entitled to any benefit. I assume if he is not supposed to be on (IB)JSA then I am not entitled to WTC.

Your help will be most appreciated in this as I dont know where to turn.

HH

Something is amiss somewhere.

Under the JSA(IB) rules the claim your partner made would have to have been for a couple as he would not be able to claim JSA(IB) as a single person because you co-habit. A partner of a claimant can work for up to 24 hours per week before JSA(IB) would be disallowed. I'll double check the guidance on this though on Monday.

The only way your partner would have been able to claim as a single person would have been to make a claim for JSA(C). This is based on NI contributions and credits in the 3 tax years previous to the benefit year in which the claim was made. JSA(C) would only have been paid for 26 weeks.

In terms of WTC, either you and your partner, or either of you, need to work at least 16 hours per week to qualify. You will get a premium for working more than 30 hours per week (the 30 hours cannot be a combination of yours or partner's work hours).

JSA(IB) will be reduced by the amount of income you have coming in from employment and WTC. If an official error has been made by DWP, any overpayment made cannot be recovered from your partner.

Thanks for all your help - it is very much appreciated.

We have been honest from the start but being accused of fraud really does scare me.

I know he started on JSA(C) but after the 26 weeks he was moved over to JSA(IB). He filled out a form with my earnings, my hours (30), salary and what WTC I get and this what they said he was entitled to and that it would be reduced because of my earnings. He was not entitled to any other benefit. At one point at the beginning I do know that they said because of my salary (it isnt very high by the way) he would not be entitled to JSA but he still needed to sign on etc and then got a letting saying he gets £2 week.

Its the WTC I am worried if they ask for all that back - I know we dont get the full allowance we get about £800 per year but if they ask for that back I dont know what we would do.

Originally Posted by hammyhound

We have been honest from the start but being accused of fraud really does scare me.

Don't worry!!! It is very unlikely that the Fraud and Investigation team would become involved as your partner has declared all the information and changes he is required to. This would appear to be a case of official administrative error.

Originally Posted by hammyhound

I know he started on JSA(C) but after the 26 weeks he was moved over to JSA(IB). He filled out a form with my earnings, my hours (30), salary and what WTC I get and this what they said he was entitled to and that it would be reduced because of my earnings. He was not entitled to any other benefit. At one point at the beginning I do know that they said because of my salary (it isnt very high by the way) he would not be entitled to JSA but he still needed to sign on etc and then got a letting saying he gets £2 week.

JSA(C) is payable, where qualifying conditions are met, for 26 weeks and any income from a partner is not deducted nor taken into account. This would be paid at the applicable amount for your partners age.

With moving over to JSA(IB) at the end of the 26 week period, your income and hours would be taken into account. Should this have the effect of zeroing the amount payable, because your partner still has an underlying entitlement to JSA(IB) as he is unemployed and actively seeking work, then he would be awarded credits only JSA(IB).

Originally Posted by hammyhound

Its the WTC I am worried if they ask for all that back - I know we dont get the full allowance we get about £800 per year but if they ask for that back I dont know what we would do.

Even with your partner being unemployed, the fact that you are working full time and over 30 hours should still entitle you to WTC. Tax credits, however, are not my area of knowledge as I don't work for HMRC so I cannot give a definitive answer on that subject area.

Thank you now I understand completely. I think what I have done is when we have renewed I said he was receiving IBJSA instead of explaining that he gets credit only because of my employment and me receiving WTC this has obviously put an alert to them - they think he has been receiving something like £64.

I will speak to the tax credits on Monday.

You have been a great help.

Thank you

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