Friend claiming tax credits, does she qualify?

milliemonster

I have a friend who has recently split from her husband (her choice) she works and earns around £1400 a month, owns her home (worth £250k, mortgage is £70k) and has 3 children, 2 of which are her husbands, the eldest is from a previous relationship.

She also gets £200 a month from her ex for her eldest and her husband is paying her £400 a month for the other 2 kids, she has also told me she is now going to be claiming tax credits of £700 a month on top of all this to bring her income up to £2700 a month, can she do this? I didn't think she would be allowed tax credits at this level when she is already getting a good wage and maintenance payments.

Becles

Child maintenance is ignored as income for tax credit purposes. As long as she is working over 16 hours and her salary is under £55K-ish, she's entitled to claim tax credits.

Limana68

I cant see her being entitled to £700 in tax credits though!

Blackpool_Saver

Seems a lot to me too but the benefit system can be very bizarre.
Why does this bother you is your income a lot less? mine surely is lol

lauzellen

Maybe part of it includes some childcare element if the children are young? Is the £1400 pcm before or after tax as that also has to be considered.

I wouldn't begrudge your friend getting the extra help, she is afterall your friend, and if she has been honest with tax credits and checked the award notice for any errors then she is entitled to it. It's not easy being a single parent and i'm sure you would want her to get all the help she can financially. Don't forget tax credits is based on the previous tax year so was she earning less last year? That also may explain it.