Does my son's wage count towards household income?

My eldest son (17) is working part time whilst studying and plans to take a gap year next year and work for part and travel for the rest. My husband and I are currently entitled to WTC and I was wondering whether my son's wage should be included as part of household income? He does not contribute towards household bills and his money is paid into his own bank account.

Thanks for any advice
«13

Comments

  • Vader123
    Vader123 Posts: 1,104 Forumite
    1,000 Posts Combo Breaker
    This is a easy one!

    If your son is living in your house, and has a income, he does "count towards household income".

    You say
    He does not contribute towards household bills and his money is paid into his own bank account

    Point 1) At 17 he should be paying his way and paying board towards your bills.
    Point 2) the fact its paid into his bank account is irrelavant
    Point 3) Just because it goes into his bank account and not yours does not mean its not "household income".

    Regards
    Vader
  • jdturk
    jdturk Posts: 1,636 Forumite
    I'm amazed, so even though they are under 18 they still count towards the household income.....learn something new every day!
    Always ask ACAS
  • donnajunkie
    donnajunkie Posts: 32,412 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    the system is odd because if for example you are single and have your adult son living at home. you could be on jsa and they could be working. therefore the rent and council tax would go up to the full amount. if its not paid though they take the person on jsa to court for none payment and not the adult son who is working.
    has anyone ever actually been taken to court in this scenario? i am just curious how they manage to make someone on £64 per week pay a rent of £100 per week.
  • Indie_Kid
    Indie_Kid Posts: 23,097 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    the system is odd because if for example you are single and have your adult son living at home. you could be on jsa and they could be working. therefore the rent and council tax would go up to the full amount. if its not paid though they take the person on jsa to court for none payment and not the adult son who is working.
    has anyone ever actually been taken to court in this scenario? i am just curious how they manage to make someone on £64 per week pay a rent of £100 per week.

    They'd get max LHA for their area.
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  • DX2
    DX2 Posts: 8,275 Forumite
    Vader123 wrote: »
    This is a easy one!

    If your son is living in your house, and has a income, he does "count towards household income".

    You say



    Point 1) At 17 he should be paying his way and paying board towards your bills.
    Point 2) the fact its paid into his bank account is irrelavant
    Point 3) Just because it goes into his bank account and not yours does not mean its not "household income".

    Regards
    Vader
    I think you may find you info incorrect.
    *SIGH*
    :D
  • healy
    healy Posts: 5,292 Forumite
    Part of the Furniture 1,000 Posts
    DX2 wrote: »
    I think you may find you info incorrect.

    I am not an expert on tax credits but I agree with you.
  • I think partner's income counts but not the income children earn. If they paid "board" then that could be included but presumably there would be some offsetting allowance.

    I don't think you can include your children's income.
  • tazwhoever
    tazwhoever Posts: 1,326 Forumite
    Part of the Furniture 500 Posts Name Dropper
    i don't see how parents can have access to their son's account, and their jsa is reduced. if a adult non-dependant, the LHA/HB will be reduced accordingly...

    i am too pluzzed
  • healy
    healy Posts: 5,292 Forumite
    Part of the Furniture 1,000 Posts
    the system is odd because if for example you are single and have your adult son living at home. you could be on jsa and they could be working. therefore the rent and council tax would go up to the full amount. if its not paid though they take the person on jsa to court for none payment and not the adult son who is working.
    has anyone ever actually been taken to court in this scenario? i am just curious how they manage to make someone on £64 per week pay a rent of £100 per week.

    The rent and Council Tax would not go up to the full amount.

    There would be a non dependent deduction for the adult child.
  • His income definitely doesn't get counted. I had a quick look at the HMRC form instructions and found the following:
    "What not to include

    Don't include:
    • maintenance payments received from a former partner
    • tax credit payments
    • student loans
    • student grants, except the Adult Dependant's Grant
    • income your children have had, unless it's taxable in your or your partner's name
    • the Christmas Bonus and the Winter Fuel Payment
    • income from tax-free savings such as Individual Savings Accounts (ISAs), Personal Equity Plans (PEPs), index-linked and fixed-interest National Savings Certificates, Children's Bonus Bonds war pensions
    • pensions or annuities paid to victims of Nazi persecution
    If you are unsure whether or not to include income, call the Tax Credit Helpline on Tel 0845 300 3900 or Textphone 0845 300 3909."
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