Working Tax Credits and Premiums

PL

I can't say for definite, as Bro says, it is not something we normally deal with.

From what I understand there would be two aspects to it, non-standard circumstances and standard ones (these are not terms used in relation to either set of benefits).

The non-standard situations which would include the 28 week run-on of Tax Credits after someone stops working or when someone is continuing to receive sick pay (not SSP), I'm not sure if there are others like this.

The standard would be the on-going payment of Tax Credits and the Premiums in parallel. In both cases I think that if there is a window for this to happen then it is a very small one.

Any Tax Credits being paid will be treated as income in regard to the Income Related Benefit that is enabling entitlement to payment of the Premiums, so as long as the Tax Credit payment and the income that produces it, does not erode the IR payment then the Premiums would be payable. Based on Minimum Wage income would be at least £104/week (£6.50 x 16) plus any TC's.

Looking at it the other way presents more problems, as I understand it a disabled person needs to work at least 16 hours a week to qualify for Tax Credits, I am not sure that any IR benefit allows this, for example the rule for Permitted Work is less than 16 hours. For a non-disabled person I believe the figure is 24 or more hours and again using ESA in regard a partner the maximum is less than 24 hours, so there is no overlap which is likely to be deliberate.

The bottom line is that this would be on a case by case basis and I would think the most likely scenario would be when the person has just stopped working.

Gordon