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Forum Home  →  Discussion  →  Covid-19 issues  →  Thread

WTC beyond 8 weeks

EJ
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Benefits advice line - Coventry City Council

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Client is single, receives WTC with a disability element (no disability benefit: the element comes from the old entitlement of longterm sickness benefit evolving into 16+ hours of work).  She also gets HB with disability premium.  She has been unable to trade since the lockdown and, so far, has been surviving on her (happily temporarily increased) WTC and HB.  She doesn’t know yet if she will get the SEiSS grant.

Has anyone seen anything yet about the WTC just being paid initially for 8 weeks? 

Or, as her business hasn’t ceased, the premises are still being rented etc, will she still count as being “in work”  for HMRC purposes?

Thanks in advance
Elaine

Ianb
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Macmillan benefits team, Citizens Advice Bristol

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https://www.gov.uk/government/news/tax-credits-customers-will-continue-to-receive-payments-even-if-working-fewer-hours-due-to-covid-19

“The government has confirmed that people who can’t work their normal hours because of coronavirus (COVID-19) will still receive their usual tax credits payments.

Those working reduced hours due to coronavirus or those being furloughed by their employer will not have their tax credits payments affected if they are still employed or self-employed.

These customers do not need to contact HMRC about this change. We will treat customers as working their normal hours until the Job Retention Scheme and Self-Employment Income Support Scheme close, even if they are not using either scheme.

We’ll use the information we hold about the number of hours they normally work.

Customers can still report any other changes in income, childcare and hours in the normal way. However, they must tell us if they or their partner lose their job, are made redundant or cease trading.

Customers can continue to claim Working Tax Credit and be treated as though they are working their normal hours, but they should check GOV.UK to see if additional or alternative support is available based on their personal and financial circumstances.“

Ianb
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Macmillan benefits team, Citizens Advice Bristol

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Just noticed this page has been updated https://www.gov.uk/changes-affect-tax-credits

“You do not need to report any fall in your working hours as a result of coronavirus (for example you’re working fewer hours or have been put on furlough).

You’ll be treated as if you’re working your normal hours until the Coronavirus Job Retention Scheme closes.

You should still report any changes in income, childcare and increase in hours in the normal way. You must tell HMRC if you:

are made redundant
lose your job
are self-employed and stop trading”

EJ
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Benefits advice line - Coventry City Council

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Ianb - 19 May 2020 10:09 AM

Just noticed this page has been updated https://www.gov.uk/changes-affect-tax-credits

“You do not need to report any fall in your working hours as a result of coronavirus (for example you’re working fewer hours or have been put on furlough).

You’ll be treated as if you’re working your normal hours until the Coronavirus Job Retention Scheme closes.

You should still report any changes in income, childcare and increase in hours in the normal way. You must tell HMRC if you:

are made redundant
lose your job
are self-employed and stop trading”

Thanks so much I an.  I think she’ll be ok then - the salon premises are still there: she’s just desperate to reopen. 

The loss of legacies in this particular case would have been truly devastating.  thanks again..

bristol_1
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WRAMAS Bristol City Council

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Hello
My client was on furlough up to end of Sep, and therefore was treated as still in 16h/week work for WTC. She worked through an agency, ZHC, so no specific contract and varying hours pre-CV19.
Her furlough money ended at end of Sep and she said that she spoke to her empoyer who won’t make any further payments and there have been no more shifts of work since then so she ceases to be entitled to WTC after the 4-week run on. She says she called tax credits as advised, and after a discussion with a colleague, the operator told her to call them back after 1st November
Any thoughts? I hadn’t seen any guidance to change the run-on of tax credits from 4 weeks, although I think it was temporarily 8 weeks in the summer.

LITRG
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Low Incomes Tax Reform Group

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bristol_1 - 20 October 2020 04:56 PM

Hello
My client was on furlough up to end of Sep, and therefore was treated as still in 16h/week work for WTC. She worked through an agency, ZHC, so no specific contract and varying hours pre-CV19.
Her furlough money ended at end of Sep and she said that she spoke to her empoyer who won’t make any further payments and there have been no more shifts of work since then so she ceases to be entitled to WTC after the 4-week run on. She says she called tax credits as advised, and after a discussion with a colleague, the operator told her to call them back after 1st November
Any thoughts? I hadn’t seen any guidance to change the run-on of tax credits from 4 weeks, although I think it was temporarily 8 weeks in the summer.

Sounds like they are treating her as employed and as a coronavirus impacted worker under the regulations. This applies to 31 October. At present, no idea whether HMRC are going to extend the protection or whether the various run-ons in the new regs will kick in at that date.

[ Edited: 21 Oct 2020 at 02:29 pm by LITRG ]
bristol_1
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Thank you, I wasn’t quite clear if she counted as such as her furlough payments stopped at the end of September.

It makes a huge difference to this client as when WTC ends she needs to claim UC, and WTC protects her from the benefit cap.

I’ve advised her to call back tax credit office on 30th Oct, as they told her to call back on 1st November = a Sunday.

I guess if they allow a 4 week run on from 31/10, she might manage to get a new job in that time…
Nice to know that ten days before the end of this period, no one in tax credits knows what’s going to happen next to people’s claims?!

LITRG
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bristol_1 - 21 October 2020 10:49 AM

Thank you, I wasn’t quite clear if she counted as such as her furlough payments stopped at the end of September.

It makes a huge difference to this client as when WTC ends she needs to claim UC, and WTC protects her from the benefit cap.

I’ve advised her to call back tax credit office on 30th Oct, as they told her to call back on 1st November = a Sunday.

I guess if they allow a 4 week run on from 31/10, she might manage to get a new job in that time…
Nice to know that ten days before the end of this period, no one in tax credits knows what’s going to happen next to people’s claims?!

I’m not personally convinced in this case she would continue to get tax credits because it sounds like a permanent change, but if that is what they have said…..

 

 

Sue ABF
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ACU - Runnymede and Spelthorne Citizens Advice

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Can anyone confirm that the non reporting of drop in hours applies to self employed as well as employed. I had presumed that it had and with the extension of Job retention that this would be extended for another 4 weeks. However, a colleague went on a training course which referred to it only applying to employed people and not self employed ? Any comments much appreciated

Vonny
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Welfare rights adviser - Social Inclusion Unit, Swansea

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will the normal hours if on furlough continue now until december?

Charles
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SueACU - 04 November 2020 10:08 AM

Can anyone confirm that the non reporting of drop in hours applies to self employed as well as employed. I had presumed that it had and with the extension of Job retention that this would be extended for another 4 weeks. However, a colleague went on a training course which referred to it only applying to employed people and not self employed ? Any comments much appreciated

The original regs for the period until 31 October clearly included those self-employed. The regs haven’t been made yet for the extension, but see here.

Vonny - 04 November 2020 11:14 AM

will the normal hours if on furlough continue now until december?

See the above link.

LITRG
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Charles - 04 November 2020 11:58 AM
SueACU - 04 November 2020 10:08 AM

Can anyone confirm that the non reporting of drop in hours applies to self employed as well as employed. I had presumed that it had and with the extension of Job retention that this would be extended for another 4 weeks. However, a colleague went on a training course which referred to it only applying to employed people and not self employed ? Any comments much appreciated

The original regs for the period until 31 October clearly included those self-employed. The regs haven’t been made yet for the extension, but see here.

Vonny - 04 November 2020 11:14 AM

will the normal hours if on furlough continue now until december?

See the above link.

I’ll perhaps update that blog post as it was written before we knew the full story - just to make it clearer.

The original legislation didn’t, as far as I can tell, actually say the 31 Oct it just said until the end of the JRS so i don’t think they need new legislation immediately. And yes, as you say, it does cover the self-employed as they count as a coronavirus impacted worker.