Working Tax Credits - Advice, anyone?

[Voley]

I've just got a job and signed off the dole.

The wages of the new one are pretty shit (10 and a half grand a year) so I asked the girl at the dole if there was any other help I could get and she reckons I might be eligible for Working Tax Credits. I've got an appointment tomorrow to see someone who's going to assess me.

I always thought these things were only for working families - I haven't got any kids - but apparently not.

I've had a look on the Inland Revenue website and got a bit of info but the one question it won't answer (for obvious reasons) is 'Is there anything I should keep my trap shut about?' ie the bit of dosh me brother gives me towards the mortgage.

Any advice, anyone?

 

[Space Girl]

if you fill out the on-line form it will tell you at the end if you are entitled to anything, it's pointless not telling them everything unless you are secretly a millionaire with off shore bank accounts

 

[Fozzie Bear]

https://www.taxcredits.inlandrevenue.gov.uk/HomeIR.aspx

 

[Voley]

Ta.

I'm entitled to about £930 according to that.

I think my brother's money might be one of those things that I'll only mention if they bring it up.

Iyswim.

 

[inflatable jesus]

If you don't pay tax on it (or don't want to) then there's no point in bringin it up.

They don't check your bank account or anything.

 

[Voley]

Thought as much, thanks.

 

[Paulie Tandoori]

If you don't pay tax on it (or don't want to) then there's no point in bringin it up.

They don't check your bank account or anything.

You're kind of right and kind of wrong IJ - if it is assumed that the tax man doesn't already know about the arrangement, then there's no reason to let them know (after all, they take fuck-all regard for how much mortgage anyone pays in deciding whether you're entitled or not) - however, the IR can check your bank accounts and this is exactly the kind of thing that trips people up when the IR make an annual check on circumstances (as they often do).

Further, once you have claimed, they can insist on seeing documentary proof of things such as bank accounts, savings, etc and can penalise you at, i think, £300 a day for each day past their deadline that you don't comply, regardless of whether you may have reasons for not disclosing.

I think the only occasion that the IR will disregard payments towards a mortgage as your income is when they arise from a mortgage protection insurance policy.

edited for clarity

 

[Voley]

Turns out I'm entitled to an extra £40 a week. Over 2 grand a year!

I'm staggered, frankly.

And my brother's money's kosher, too, as it comes under a thing called the 'Rent A Room' scheme. It's such a pittance that I don't have to declare it, basically.

That Tony Blair's ever such a nice man, really, you know. I'll certainly be voting for him next time round.

God Save The Queen!

 

[geminisnake]

I do hope you're being facetious there my dear!!

 

[1927]

Having worked in the NTC office i am staggered by the peeps that can claim NTC's.A couple earninga combined income of as much as £66k a year are entitled to cliam if they have a kid under 1 year of age.
You are entitled to rent a room for upto £3500 iirc without declaring it for tax or ntc's. basically if it aint taxable its not de clarable for ntc's,they also dont take into account the first 1800 of any interst etc on savings etc.

 

[hp66]

Might you be being a little sensationalist?

I don't think it's that off the wall in terms of Government policy. Redistribution of wealth n all that. And aren't they trying to encourage both parents in conventional families to work to increase tax revenues? Presumably there's a fair chance that the highest wage earner will be paying tax at a rate of 40%, so they're just getting a bit of a rebate for replenishing the population & producing the next generation of tax payers. I think the amounts are probably tiny for someone earning £66k and your post kindof implies that once a child reaches it's first birthday they would no longer qualify. The forms & process are tiresome and some wrong-thinking high earners will be deterred simply because it's a means tested benefit. Don't know if figures are available yet, but I imagine take up rates for people approaching that income level are very low indeed.

AFAIK the "rent a room" scheme has been running for decades, and isn't the allowance £4250? Again, it allows relatively low paid home owners - which is want successive Governments over the years have forced many of us to be, often reluctantly - some self-sufficiency if their circumstances change or interest rates shoot up.

Despite the lamentable problems with implementation, the WTC & CTC schemes are substantially more generous than previous benefits. (Though I believe substantially less for people paying high private sector rents who, by virtue of higher WTC/CTC can be excluded from Housing Benefit & Council Tax Benefits where tapers have remained the same.

Isn't the whole thrust of WTC/CTC to decrease long-term dependency on the state by rewarding people for working & trying to eliminate the poverty trap? It would be a nonsense to penalise people who have moved into relatively low paid work & done what the state wants by trying to save a little for emergencies, only to have most of it deducted pound for pound from their Tax Credits claim.

I think I'm sounding like a bloody blairite daily mail reader, which I ain't, so I'll shut up now and await some contrary argument

 

[Voley]

You are entitled to rent a room for upto £3500 iirc without declaring it for tax or ntc's. basically if it aint taxable its not de clarable for ntc's,

£4250 according to the woman in the dole office.

(my bro doesn't give me anywhere near that)

 

[Voley]

I'd imagine that the thrust of this is to get people off the unemployment figures and into a job - any job - even if it's badly paid.

Tbh, when I first heard the salary for this job I thought 'it ain't worth it'. But with the extra £40 a week it's do-able. I'm hardly gonna be able to put my first downpayment on that Lamborghini that I've had my eye on, but it'll be enough to get by on. I'm used to £55 a week JSA, remember.

I've gotta admit I'm pleasantly surpirised by how much they'll top my wages up by - my previous experience of JobCentre's has always been a case of them telling you what you can't have.

Makes a change, like.

geminisnake - no, I meant every word of it.

 

[neilh]

i think it takes the piss that it means when i'm working, i'm earning a full 40 quid less than someone doin the same job who's just a bit older. does anyone know why they just start at 25? it's not like living costs are any cheaper for a 24 year old.

 

[hp66]

I seem to have turned into the antichrist

can I claim an extra £600?

The Housing Benefit under 25s single room rent restriction began on 7th October 1996. I'm not certain, but I think the restructuring of personal allowances for benefit purposes started then too, could've been earlier. Another tory blinder which this govt has chosen to perpetuate and spread

 

[Voley]

i think it takes the piss that it means when i'm working, i'm earning a full 40 quid less than someone doin the same job who's just a bit older. does anyone know why they just start at 25? it's not like living costs are any cheaper for a 24 year old.

Yeah, I've wondered that, too.

The minimum wage / JSA levels are similar, too, I think. You get less if you're younger. I can't see any good reason for it at all, myself.

 

[1927]

i think it takes the piss that it means when i'm working, i'm earning a full 40 quid less than someone doin the same job who's just a bit older. does anyone know why they just start at 25? it's not like living costs are any cheaper for a 24 year old.

There is a similar position in that you have to be working 30 hours a week.So someone only working 28 hours a week isnt eleigible,whereas someone doing same job for 30 hrs and therefore earning more money actually receives WTC in addition to their higher wage!