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Thursday, 4 December 2008

Money, tax and benefits

Money, tax and benefits

Benefits and help when going back to work

If you return to work after being on benefit, some of your benefits will stop automatically straight away. Some will carry on for a short while after you start work to tide you over. You may be able to get other benefits once you're working.

Help with housing costs

If you were getting help with your housing costs while you were out of work, you may carry on getting this for up to four weeks after you start your new job. You'll need to have claimed income-based Jobseeker's Allowance, income-related Employment and Support Allowance or Income Support for at least 26 weeks continuously just before you started work.

Benefits include:

  • Extended Housing Benefit
  • Extended Council Tax Benefit
  • Mortgage Interest Run On

You don’t have to make a claim for extended payments of Housing Benefit and Council Tax Benefit, but you must tell Jobcentre Plus and your local authority about your change in circumstances.

From October 2008 when your Extended Payment of Housing Benefit/Council Tax Benefit ends you do not have to make a new claim for in-work Housing Benefit/Council Tax Benefit. Your local authority will consider whether you are entitled to in-work Housing Benefit/Council Tax Benefit at the same time as they decide whether you have fulfilled the conditions for an extended payment.

Job Grant

Job Grant is a tax free lump sum you may get when you start full-time work (at least 16 hours a week). You may get it if you have been getting one or more of these benefits for at least 26 weeks before you started work:

  • Employment and Support Allowance
  • Incapacity Benefit
  • Income Support
  • Jobseeker's Allowance
  • Severe Disablement Allowance
  • Jobcentre Plus/New Deal payments where the allowance is based on Jobseeker's Allowance, Income Support, Incapacity Benefit or Severe Disablement Allowance
  • Employment Zone payments where the allowance is based on Jobseeker's Allowance

If you have a partner and they start work over 24 hours, removing the entire family unit from benefit, they may be eligible for a job grant payment. The amount of Job Grant you'll get depends on your circumstances:

  • £100 if you're a single person or part of a couple with no children
  • £250 if you're a lone parent or part of a couple with children

Job Grant is paid to you automatically when you start your new job.

Tax credits

A tax credit is a payment that you receive regularly - despite the name, it isn't a credit against your tax bill. Nine out of ten families with children are eligible for Child Tax Credit. If you're working more than 16 hours a week and you're on a low income, you may be able to get Working Tax Credit too.

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