Tax credits – the 30 hour rule

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  • #19728
    peterdelamothe
    Keymaster

    DWP recently confirmed that:

    “The 30 hours earnings disregard does NOT depend upon the claimant being in receipt of the 30 hour element or, indeed, WTC. It simply depends upon whether
    (s)he is 25 or over and working for 30 or more hours per week. We have always said there will be changes as a result of the introduction of NTCs”.

    OK so far so good but what about IT for both this and the disability premium issue mentioned in the special edition of the DWP’s newsletter. Is your software supplier able to cope with these changes automatically or are you having to do much manual intervention?

    #843
    janish
    Participant

    please tell me the 25 yrs old rule doesn’t apply to loneparent/family premium/disability cases?

    #844
    Anonymous
    Guest

    is there any chance of a link or pointer to the appropriate regs/legislation ?

    we appear to have missed this one totally

    oops 🙁

    no-one here has ever awarded this disregard manually, and our systems didnt allow for it.

    #845
    Anonymous
    Guest

    In the Tax Credit Guide paragraph 1365,
    1365 • 30 hour disregard
    – only either one 30 hour earnings disregard or one 30 hour element disregard is applicable per claim, even if both people in a joint claim are working 30 or more hours per week
    – the 30 hour earnings disregard is applied (even if WTC is not in payment) provided the claimant meets the relevant criteria. These are ~
    the claimant is engaged in remunerative work for 30 or more hours per week,
    and
    a is over 25, or
    b is a lone parent, or
    c their applicable amount includes a disability premium or the higher
    pensioner premium, or
    ~ the claimant is a member of a couple, and
    a one member of a couple is over 25 and that person is engaged in
    remunerative work for 30 or more hours per week, or
    b both members of the couple are engaged in remunerative work for a
    combined total of 30 hours per week or more and one member of the
    couple is engaged in remunerative work for at least 16 hours per week and
    the applicable amount includes a family premium, or
    c both members of the couple are engaged in remunerative work for a
    combined total of 30 hours per week or more and one member of the
    couple is engaged in remunerative work for at least 16 hours per week and
    that member satisfies the conditions for the award of the higher pensioner
    premium or a disability premium and the net earnings of the claimant, or
    claimant and their partner, equal or exceed the total of
    i the amount of the applicable earnings reduction, eg £5, £20 or £25, and
    ii the 30 hour tax credit element, and if applicable
    iii the relevant childcare disregard (or the childcare deduction, if this is
    less)
    If the claimant’s earnings do not exceed this amount, an amount up to the
    equivalent of the weekly 30 hour element can be disregarded from the claimant’s
    WTC award.

    Also, in circular A16/2000, referring to the 30 disregared and WFTC/DPTC:-

    4. You will see that a claimant does not have to be in receipt of, or applied for WFTC/DPTC in order to receive the extra disregard.

    Hope this helps.

    #846
    Julian Hobson
    Participant

    Couldn’t find the thread on the £11.90 issue but it is resolved see SI 770 2003

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