Child tax and working tax credits question

[Timpg]

Hi all.

 

Just a quick query. I’m due to leave a well paid position at my company to begin training in another position in the same company, in order to better myself, the problem is the training wage is very low for the first 11weeks then rise slightly as I progress through the training. My question is, as my previous position was well paid, I wasn’t entitled to tax credits, now I’m due to begin training in approximately March time next year. If and when I declare my new salary to hmrc, will I automatically be entitled to tax credits there and then or will I have to wait until the new tax year in April? My earnings for tax year 2018 to 2019 will be over the entitlement limit by the time we get to March 2019, so I wasn’t sure how it worked. Also do they take into account salary sacrifice benefits that I have taken advantage of at my company? I.e, would I declare my salary minus the salary sacrifice? Thank you very much in advance

[brassnecked]

Depending where you live you might have to claim Universal Credit instead I would check if your area is or will be a Full Roll Out UC area when you start training.

[Timpg]

Depending where you live you might have to claim Universal Credit instead I would check if your area is or will be a Full Roll Out UC area when you start training.

 

Thank you for the reply. Oh okay, we’ll if it’s any help, I live in Ipswich Suffolk.

[brassnecked]

Ok Ipswich is a Universal Credit area since April, UC replaces several benefits including Working Tax Credit and Child Tax Credit.

 

 

It looks like you will have to claim UC when your income drops, you will need enough money to survive for 5 weeks before your first payment as it is paid 4 weeks in arrears.

 

 

Others will be along soon I think with further advice.

 

 

 

https://www.ipswich.gov.uk/content/universal-credit-here

[Timpg]

Ok Ipswich is a Universal Credit area since April, UC replaces several benefits including Working Tax Credit and Child Tax Credit.

 

 

It looks like you will have to claim UC when your income drops, you will need enough money to survive for 5 weeks before your first payment as it is paid 4 weeks in arrears.

 

 

Others will be along soon I think with further advice.

 

 

 

https://www.ipswich.gov.uk/content/universal-credit-here

 

Ah okay mate, sorry if I sound daft, but do you mean, Ipswich is a uc area as of April gone or April next year? I haven’t yet got a start date as I’m awaiting a course date to be announced, but I have been trying to bank some extra cash ready for the big day. It is worrying though as I know my monthly wages wouldn’t even cover my rent for the 1st 3months!! But will all be worth it in the long run!

[unclebulgaria67]

Ah okay mate, sorry if I sound daft, but do you mean, Ipswich is a uc area as of April gone or April next year? I haven’t yet got a start date as I’m awaiting a course date to be announced, but I have been trying to bank some extra cash ready for the big day. It is worrying though as I know my monthly wages wouldn’t even cover my rent for the 1st 3months!! But will all be worth it in the long run!

 

He means that Universal Credit (UC) started in April 2018 in that part of the country and if you meet the eligibility criteria for UC, you have to claim UC and not tax credits.

 

Visit Gov.uk/Universal Credit and read the information.

 

Suggest you use a benefits calculator such as Entitledto and look at what you might receive. You might be considerably worse off for a period.

 

You might be refused any benefit help, if you have voluntarily taken a job with a reduced wage level.

[brassnecked]

Agree with unclebulgaria, look at Entitledto and turn2us for calcu;ations. Big fly in the UC ointment is that it has the same Sanction regime as JSA so working people can be Sanctioned and have the benefit cut or removed, say for leaving a job and taking another on less hours, not going to Work Focussed Interview with a Job Coach if you are on part time hours.

[Timpg]

He means that Universal Credit (UC) started in April 2018 in that part of the country and if you meet the eligibility criteria for UC, you have to claim UC and not tax credits.

 

Visit Gov.uk/Universal Credit and read the information.

 

Suggest you use a benefits calculator such as Entitledto and look at what you might receive. You might be considerably worse off for a period.

 

You might be refused any benefit help, if you have voluntarily taken a job with a reduced wage level.

 

Okay gotcha, you have to excuse me, iv never claimed benefits so I haven’t a foggiest about what to claim etc etc.. okay then i shall look into it. In regards to volunteering a lower paid job.. yes that’s kinda what I was concerned about too. Hopefully I’ll be entitled to something, i kinda need all the help I can get lol!!

[Timpg]

Agree with unclebulgaria, look at Entitledto and turn2us for calcu;ations. Big fly in the UC ointment is that it has the same Sanction regime as JSA so working people can be Sanctioned and have the benefit cut or removed, say for leaving a job and taking another on less hours, not going to Work Focussed Interview with a Job Coach if you are on part time hours.

 

Oh right okay! I suppose it’s rather complicated in my situation, as I’m not actually starting a new job as such, rather it’s a new position in the same company.