Working Tax Changes
- A couple are only able to claim Working Tax Credit from April 2012 if they work a minimum of 24 hours a week between them, with one working at least 16 hours.
- NOTE: This new 24 hour rule does not apply if one of the couple is ‘disabled’ (is entitled to the ‘disability element’ such as gets a sickness or disability benefit), or the worker is over 60 or the other partner is in hospital or prison.
Another way to claim Working Tax Credit (WTC) is by those aged 50 or over (They also get an extra amounts added weekly for the first year of working) who are starting work after being on certain benefits for six months. This route to WTC is abolished. But it does not stop them getting WTC for other reasons.
The backdating of claims reduces from 3 to 1 month. This also applies to backdating increases of existing awards for changes in circumstances.
Falls in income of up to £2,500 will be ignored. This new rule means that Tax Credits will not be increased for the first £2,500 fall in income.