I’m in a muddle….

Couple with 2 kids. He was working 40 hrs pw self-employed and she works 16 – earns approx £90pw. They receive CTC and WTC.

He stops work 5 March and advises tax credit office. They reassess entitlement and advise that only £45 pw CTC and no WTC due to end of year so I guess come April 5 payment will be restored....

If he claims JSA(IB) won’t this entitle them to max WTC/CTC?

And then award of WTC removes entitlement to JSA(IB)…..

This 'circularity' issue has been mentioned several times on here over the last couple of years and as far as I'm aware there is no 'answer'.

We have raised it with HMRC via the consultation group and they are working with DWP and Representative groups to try and address the issue.

On that note, I volunteered to try and collect more examples of where this happens so if anyone else has any let me know either via email or through the LITRG website (www.litrg.org.uk)

Victoria
LITRG

Not just me then.

Thank you.