does student loan/granet affect tax credits??

surfsister

Does anyone know if receiving a student grant and loan will affext tax credits? Mate's mum husband left and she has applied for a loan ans a single parent and recived a grant and loan but isn't sure how this will affect her tax credits as she has a low paid job too. Does anyone know if the grant/loan will reduce her tax credit? Ta

Kazzajr

The grant/loan are disregarded for tax credit purposes but are counted as income for housing benefit or other means tested benefits.

bestpud

This was posted by someone else the other day (can't remember who, sorry) and I bookmarked it as I thought it a useful guide:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_070816

Hth

allrmsaver

Only the Childcare Grant affects tax credits. If she will be receiving it, she won't be able to get the childcare element of the working tax credits.

surfsister

allrmsaver wrote: »

Only the Childcare Grant affects tax credits. If she will be receiving it, she won't be able to get the childcare element of the working tax credits.

Thanks all. She tells me she will get Parents Learning Allowance, is this the childcare element, I don't think it is as my mate is able old enough to babysit himself!! lol.

This site is so friendly and helpful ta! I will pass the info on and the link.

bestpud

allrmsaver wrote: »

Only the Childcare Grant affects tax credits. If she will be receiving it, she won't be able to get the childcare element of the working tax credits.

There is actually a few elements which affect tax credits! Have a look at this (copied from the link I posted above ) :

Types of student support which are counted as income

Types of student support counted as income are:

• the majority of any Student Loan for Maintenance you are entitled to, even if you choose not to take it out
• Adult Dependants' Grant
• Access to Learning Fund payments meant to help with general living costs (though in some circumstances, all or part of the payment may be disregarded)
• Maintenance Grant (available to full-time students who started their course in September 2006 or later)
• Bursaries (available to full-time students who started their course in September 2006 or later) that are not for course related costs, or childcare

Types of student support which are not counted as income

The following will not count as income:

• Higher Education Grant (for full-time students whose courses began in 2004/2005 or 2005/2006)
• Tuition fee grant (for full-time students whose courses began before September 2006)
• Student Loan for Tuition Fees
• Childcare Grant
• Parents' Learning Allowance
• Access to Learning Fund payments that are not for general living costs
• Special Support Grant (available to full-time students who started their course in September 2006 or later, and fall within the groups of students listed in the Income Support or Housing Benefit regulations)
• Bursaries (available to full-time students who started their course in September 2006 or later) that are for course related costs, or childcare

If you get other sources of support, speak to your student adviser at college or university to find out whether they are counted as income when working out your entitlement to benefits.

Kazzajr

Bestpud the above is not for tax credit purposes.

When working out if you’re eligible for income-related benefits while you are a higher education student, certain types of Student Loans, grants and other types of student finance will be counted as income by Jobcentre Plus and your local authority’s Housing Benefit section.

mummytofour

My Uni said I think that in my case only the adult dep grant will be counted for tax credits. I hope they are right!

surfsister

mummytofour wrote: »

My Uni said I think that in my case only the adult dep grant will be counted for tax credits. I hope they are right!

Which part is the adult dep grant? It'snot the same as the parentes learning allowance or is it? It's all so complicated with all these different grants!

thanks mummytofour and everyone else sounds ok then!

my_two_cents

Here is an excerpt from HRMC website with the link;

http://www.hmrc.gov.uk/taxandu/text.htm#4

Income that may affect your claim:
Wages (from employment or self-employment
Social Security benefits
Bank and building society interest

Income that doesn't affect your claim:
Student loans and grants (including those for childcare)

Special note for Student nurses:
Student nurses, or any health profession trainees, may receive NHS bursaries. You do not need to tell us about these if you are making a claim for Tax Credits.

brandesnap

I get tax credits still whilst at Uni - and fll student support - grants and loans