Reply To: Tax Credits and disregards

#741
simondoyle
Participant

Thank you Chris and Mark for your replies.
There must be some mistake in the revision of para 16 schedule 3!
Take this scenario:
Claimant and partner reside together and claim HB/CTB. Neither is disabled or over 80 and they do not have children. The claimant works 16 hours a week and the partner also works 16 hours a week which means between them they work 32 hours. They don’t claim WTC.
When their earned income is assessed for HB/CTB purposes, they will [u:5ef698cd9f]not[/u:5ef698cd9f] get the additional 30+ hours earned income disregard because they don’t meet the condition in para 16(2)(b)(ii)(cc).
However, if they claimed WTC, my understanding is that the maximum WTC they could get would include the 30+ hours addition. When their HB/CTB came to be reassessed to include their WTC entitlement, we could take the additional earned income disregard because it is included in their WTC award (as per para 16(2)(a)).
Surely there is some discrepancy here and I think, Chris, this is what you were trying to get at. To answer your query, it appears you can’t aggregate the hours of couples where neither works at least 30 hours a week and they don’t have children. What does anyone else think??