Claimant's Details

Case Reference: [044] 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
7686.00

Tax Year 2011/12:-
Employment			Earnings (current year)				7686.00
7686.00

Current and previous year incomes are equal so relevant income is £7686.00. Annual income is £7686.00.

Child Tax Credit

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
				Maximum amount				5903.58

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.

 

Income Support / IBJSA

Income						Applicable Amount
Earnings			145.24			Personal Allowance			67.50
145.24						Applicable Amount			67.50
Less Disregard			20.00
Net income			125.24

There is no entitlement to IS/IBJSA as Applicable Amount does not exceed net income.

Housing Benefit and Council Tax Benefit

Contractual rent			110.00
less ineligible charges			29.43
Eligible rent			80.57

Income						Applicable Amount
Earnings			145.24			Personal Allowance			67.50
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
	Income			242.48	233.15
	less Applicable Amount			208.88	200.85
	Excess Income			33.60	32.30

	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)

	Income Support/IBJSA				0.00
	Child Tax Credit				112.91
	Housing Benefit				58.73
	Council Tax Benefit				8.50
	Non Means Tested Benefits				20.30
	Net income from work				145.24
	Total				345.68

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.