Need help with Tax Credits?

[chowdray]

Hi,

I'm new to this forum. I have a friend who needs some help/advice regarding Tax Credits.

He has been on the Directgov web site, but he can't make head or tail of it. Perhaps someone on here who has first hand experience of claiming Tax Credits may be able to give him advice or assistance.

His details are as follows :-

My friend does not work, neither does he sign on.

His only income is £9.68 Child Tax Credit. He also gets £13 Child Benefit(2nd child - the 1st child lives with a relative). His wife works 40 hours a week and as a NETT income of £248 a week.

Altogether, there is roughly £270 a week coming into the household for the 3 of them. The rent alone is £115 a week. They run a car, but it is a necessity for the wife to work, and take the child to school.(there are no local buses).

Does anyone think he will be entitled to Tax Credits?

Would it be better if his wife worked LESS hours. Would they be "better off" if she did?

 

Sorry if the details are a bit sketchy.

My friend has filled in the TAX CREDIT FORMS to apply for tax credits ... but ... he has been informed that it will be SIX WEEKS before he hears whether his claim will be successful.

He can't afford to wait 6 weeks and then be told he does not qualify.

Any help/advice would be greatly appreciated.

[acutetomato]

What's the wife's gross income? Tax credits are calculated on gross, not net.

[acutetomato]

OK, no reply, so I've estimated the gross at £297.90 and assumed the pay was the same as last year. Based on the figures you've given a JOINT CLAIM for tax credits would roughly amount to an award of ~£76 per week made up of WTC ~£17 and CTC ~£59 there might also be an entitlement to housing benefit unless there is some capital you haven't mentioned.

Edited February 12, 2012 by acutetomato

[chowdray]

Hi acutetomato,

Thanks for the prompt reply.

I'm trying to contact my mate to get the answer. As soon as I have the information, I'll post it.

 

Sorry to be an idiot, but what is WTC and CTC ? .... and definitely NO money stashed anywhere. They are potless and owe a few bob to the bank via an overdraft.

[acutetomato]

n.b. Your friend's right to claim Housing Benefit could also be affected by immigration status.

Edited February 12, 2012 by acutetomato

[acutetomato]

WTC ~ working tax credit CTC ~ child tax credit

[chowdray]

Both me and my mate are white, C of E ... so no immigration status issues. Mind you, some people think we talk a bit foreign up here in Yorkshire !! Hey up there lad, go fetch yon whippet from t'alleyway. ha ha.

The name "Chowdray" comes from when I used to deliver papers to an Indian shop, and every time I walked in, the Indian guy used to shout " Hey up !! Chowdray is here" .... I haven't a clue what it meant, but it stuck.

[acutetomato]

Great, so make sure your friend has made a joint claim for tax credits and tell him to try for Housing Benefit. If in doubt, claim, is always a good rule.

Edited February 12, 2012 by acutetomato

[acutetomato]

Oh and one more thing, if he has an overdraft tell him to open a basic bank account with another bank to get the benefits paid into.

[chowdray]

Thanks acutetomato, I'll tell him.

Like I said, he has already put in a claim(don't know if it's joint, but I'll tell him), but I think the 6 week wait was the worry. If his claim was successful, then he would get it back-dated from when he put the claim in, so he would be able to cling on by his fingertips until the dosh came through.. However, if he was refused Tax Credits after 6 weeks, then the extra debt he would have had to take on would probably have pushed him over the edge into financial ruin.. The family is already stretched to the limit financially. He was a bit silly. He waited until all of the money in savings etc had run out before putting the Tax Credit claim in.. He thought that he would be able to get a job, but there's NOTHING doing.

By the way, the GROSS income of the wife is £307 - coming out with £249

[acutetomato]

£307 would bring the WTC down to around £13 a week. If your friend wants to do his own calculation then tell him to try http://www.turn2us.org.uk/benefits_search.aspx which is much better than the direct gov calculator.

[cerberusalert]

The name "Chowdray" comes from when I used to deliver papers to an Indian shop, and every time I walked in, the Indian guy used to shout " Hey up !! Chowdray is here" .... I haven't a clue what it meant, but it stuck.

 

Chowdary is usually used before name eg. chowdhary.navit bhati & is used to show respect to someone.

[jadeybags]

They should be able to backdate the claim 3 months too. Until april anyway, when it goes down to 1 month.

[honeybee13]

Hello there.

 

I'm sorry this was missed, now moving it to the tax credits subforum of the benefits one.

 

My best, HB