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Top Working Tax Credit & Child Tax Credit topic #775

Subject: "Finishing work and claiming CB JSA - impact on Tax Credits" First topic | Last topic
JService
                              

Benefits and Income Adviser, NBH, Blackburn
Member since
27th Feb 2004

Finishing work and claiming CB JSA - impact on Tax Credits
Fri 28-Jan-05 10:06 AM

Couple currently both working and getting £545 CTC as have 1 child.

Mr due to be made redundant 31st March 2005. Will claim CB JSA. Redundancy payment less than £3'000.

Mrs works over 16 hours a week.

So will be able to get WTC and CTC. But I'm not too sure what figure to use for his CB JSA. Presumably when Mr contacts IR in April to inform them that he has finished work IR will do a reassessment on his actual income (ie CB JSA) and her 2004/5 income?? I have heard of cases where claimants have been told that IR wont reassess as they may get another job soon. Can he put pressure on IR to reassess if he is told this??

If they do reasess, what figure will IR use for his CB JSA ??? Will they take the weekly figure and estimate how much this means over a full year or will they recognise that it is only payable for 6 months and use the amount he will get if he remains unemployed for the full year??

Any help gratefully received

  

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Leigh Andrews
                              

welfare benefits trainer, Lasa
Member since
25th Feb 2004

RE: Finishing work and claiming CB JSA - impact on Tax Credits
Fri 28-Jan-05 03:41 PM

Hello

Ooh, we've been having a discussion here about this one. Is Mr definitely being made redundant on 31 March 2005? If so then as this is technically still this tax year (2004 / 5) it will be an in year adjustment and can be notified immediately. The advantage of this is that when the Final Notice is sent and presumably agreed by Mr and Mrs then they will use the CB JSA figures for Mr's income for next tax year.

One final point, are Mr and Mrs on HB? If so (though I think you would've mentioned it had that been the case) they may want to consider the implications for an underpayment should they choose not to inform IR of the change of income for now. There is more on this in CPAG Welfare Rights Handbook p1385.

I don't think I've answered all your queries, but you did say "any help"!!

  

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Top Working Tax Credit & Child Tax Credit topic #775First topic | Last topic