Coronavirus, Employment, Money
I am furloughed from my work, and my wages will be approx £2k less this year compared to last year. Will my tax credits/working tax credit increase?
If you’re earning less than normal, you should tell HMRC – you might get more money.
You’ll only get more money if your income drops by £2,500 across the tax year. If you report to HMRC that your salary will drop by this much and it doesn’t, you’ll have to pay back any extra money you got.
If you don’t think your income will drop by that much, you should check if you would get more money on Universal Credit. If you start claiming Universal Credit, you won’t be able to claim Working Tax Credits anymore. Seek advice before moving from Tax Credits. Call the lone parent helpline on 0808 801 0323 if you need a benefit calculation.
Please also check with your local council to see if there is any other help available to you during coronavirus.
Please also visit Working Families who have lots of useful information too.
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