Claimant's Details

Case Reference: [044] As at 23 June 2009: The Claimant (Jane), age 37, works 15 hours per week for £118.90 net. The claimant has one dependent child, aged five. The child is blind. Child Benefit is £20.00. 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.

Tax Credits: Income Calculation

Tax Year 2008/9:-
Employment						6257.14
6257.14

Tax Year 2009/10:-
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 2009 to 5 April 2010 inclusive (365 days).

Child tax credit				Family element				547.50
				Disabled child				4905.60
				Maximum amount				5453.10

Income for tax credit purposes is less than the threshold (£16040.00) so maximum credit is payable.

Tax credit payable: £5453.10 [£104.58].

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.

No entitlement to working tax credit as claimant is not in remunerative work.

Income Support / IBJSA

Income						Applicable Amount
Earnings			118.90			Personal Allowance			64.30
118.90						Applicable Amount			64.30
Less Disregard			20.00
Net income			98.90

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			28.30
Eligible rent			81.70

Income						Applicable Amount
Earnings			118.90			Personal Allowance			64.30
Child Benefit			20.00			Family Premium			17.30
Tax Credits			104.58			Child (age 5)			56.11
						Disabled Child Premium			51.24
243.48
Less Disregard			25.00			Applicable Amount			188.95
Net income			218.48

	Income			218.48
	less Applicable Amount			188.95
	Excess Income			29.53

	Eligible Rent		81.70		Eligible Council Tax			14.96
	less 65% of excess		19.19		less 20% of excess			5.90
	Housing Benefit		62.51		Council Tax Benefit			9.06

Note: all other things being equal, HB would rise to £75.51 and CTB would rise to £13.06 once child benefit is disregarded from October 2009.

Net rent payable

47.49

Net Council Tax payable

5.90

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				104.58
	Housing Benefit				62.51
	Council Tax Benefit				9.06
	Non Means Tested Benefits				20.00
	Net income from work				118.90
	Total				315.05

Claimant's net income from work is gross earnings less national insurance (£1.10).

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.