adding working tax credit to an existing child tax credit claim

I firstly figured that the claimant was needing to apply for UC but now I am not so sure.

Client has no housing costs, but claims Child Benefit and Child Tax Credit, alongside income based JSA.

She has now started employment. I was asked whether she should apply for WTC or UC. I thought it would be a change of circumstances and trigger UC, but now I am not quite so sure.

Could I get an informed opinion on this please.

It’s her choice. She can claim WTC because it is still possible to “bolt-on” one form of tax credit to the other or she can claim UC instead.

You may need to do a ‘better off’ calculation to see if WTC/CTC is more financially beneficial than UC.

For example - because of the annual calculation of TCs v monthly assessment periods for UC she may be better of on TCs for the remainder of 2019-20 (because she will only have received earnings for part of the tax year) but better off on UC for 20-21 (a full years estimated earnings will be taken into account for TC’s v the ‘work allowance’ (if eligible) in UC). There are of course many other issues with moving to UC.

Unfortunately there is no golden rule that says a particular group will always be better / worse off on UC v TC’s etc.

Hello to you both

Thankyou both so much for your responses.

We are going to opt for Working Tax Credit because she will be better off on that for the remainder of this year and next. I calculate that its about £215 per month better off in fact given her circumstances, so I owe you both a great debt of thanks

best wishes

Danny