Case Reference:  As at 14 March 2012: The Claimant (Jane), age 37, works 15 hours per week for £145.24 net. The claimant has one dependent child, aged five. The child is blind. Child Benefit is £20.30. The claimant has savings of £4200.00. The claimant is liable to pay £110.00 per week rent and £14.96 per week council tax. There are 2 rent free weeks each year.
|Tax Credits: Income Calculation|
|Tax Year 2010/11:-|
|Employment||Earnings (last year)||7686.00|
|Tax Year 2011/12:-|
|Employment||Earnings (current year)||7686.00|
Current and previous year incomes are equal so relevant income is £7686.00. Annual income is £7686.00.
Calculated for the period 6 April 2011 to 5 April 2012 inclusive (366 days).
|Child tax credit||Family element||545.34|
|Disabled child ||5358.24|
Income for tax credit purposes is less than the threshold (£15860.00) so maximum credit is payable.
Tax credit payable: £5903.58 [£112.91].
Payments will normally be made weekly or four weekly - weekly figures are shown in square brackets. Child tax credit will normally be paid directly to the main carer.
Should get passported health benefits because annual income for tax credits (£7686.00 is less than the threshold (£15276.00) and CTC is payable (and not eligible for WTC)).
No entitlement to working tax credit as claimant is not in remunerative work.
| || |
|Less Disregard||20.00|| |
There is no entitlement to IS/IBJSA as Applicable Amount does not exceed net income.
|Housing Benefit and Council Tax Benefit|
|less ineligible charges||29.43|
|Tax Credits||112.91||Family Premium||17.40|
| ||Child (age 5)||62.33|
|258.15||Disabled Child Premium||53.62|
|Less Disregard||25.00|| |
| ||Applicable Amount||200.85|
|Net income||233.15|| |
For Housing Benefit the applicable amount and income figures are adjusted because of the 2 rent free weeks. They are multiplied by the rent free factor (1.040000).
|Housing Benefit||Council Tax Benefit|
|less Applicable Amount||208.88||200.85|
| || |
| || |
|Eligible Rent||80.57||Eligible Council Tax||14.96|
|less 65% of excess||21.84||less 20% of excess||6.46|
| || |
|Housing Benefit||58.73||Council Tax Benefit||8.50|
| || |
|Net rent payable||51.27||Net Council Tax payable||6.46|
No Housing Benefit is payable during rent free weeks.
NB your Housing Benefit may be lower than this if your eligible rent is subject to a rent restriction.
|Summary (work income plus benefits)|
|Child Tax Credit||112.91|
|Council Tax Benefit||8.50|
|Non Means Tested Benefits||20.30|
|Net income from work||145.24|
Claimant's net income from work is gross earnings less income tax (£0.80) and national insurance (£0.96) .
Whilst every effort has been made to ensure the accuracy of the calculation it is not an authoritative statement of law and no responsibility is accepted by the author from any losses arising from actions or advice consequent upon its use.