Claimant's Details

As at 31 May 2004: The Claimant (Jane), age 37, works 15 hours per week for £113.92 net. The claimant has one dependent child, aged five. The child is blind. Child Benefit is £16.50. 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 2003/4:-
Employment					6257.14
6257.14

Tax Year 2004/5:-
Employment					6257.14
6257.14

Current and previous year incomes are equal so relevant income is £6257.14. Annual income is £6257.14.

Child Tax Credit

Calculated for the period 6 April 2004 to 5 April 2005 inclusive (365 days).

Child tax credit				Family element			547.50
				Disabled child			3843.45
				Maximum amount			4390.95

Income for tax credit purposes is less than the threshold (£13480.00) so maximum credit is payable.
Tax credit payable: £4390.95 [£84.21].
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 (£6257.14 is less than the threshold (£14600.00) and CTC is payable (and not eligible for WTC)).

Income Support / IBJSA

Income						Applicable Amount
Earnings		113.92				Personal Allowance		55.65
Tariff Income		5.00
						Applicable Amount		55.65
118.92
Less Disregard		20.00
Net income		98.92

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

Housing Benefit & Council Tax Benefit

Contractual rent		110.00
less ineligible charges		13.50
Eligible rent		96.50

Income						Applicable Amount
Earnings		113.92				Personal Allowance		55.65
Child Benefit		16.50				Family Premium		15.95
Tax Credits		84.21				Child (age 5)		42.27
Tariff Income		5.00				Disabled Child Premium		42.49
219.63						Applicable Amount		156.36
Less Disregard		25.00
Net income		194.63

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 (1.04).

Housing Benefit					Council Tax Benefit
	Income		202.41		194.63
	less Applicable Amount		162.61		156.36
	Excess Income		39.80		38.27

	Eligible Rent	96.50			Eligible Council Tax		14.96
	less 65% of excess	25.87			less 20% of excess		7.65
	Housing Benefit	70.63			Council Tax Benefit		7.31
	Net rent payable	39.37			Net Council Tax payable		7.65

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 or standard local housing allowance.

Summary (work income plus benefits)

	Income Support/IBJSA			0.00
	Child Tax Credit			84.21
	Housing Benefit			70.63
	Council Tax Benefit			7.31
	Non Means Tested Benefits			16.50
	Net income from work			113.92
	Total			292.57

Claimant's net income from work is gross earnings less income tax (£2.89) and national insurance (£3.19).
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.