Working tax credit

mum24boys

Hi my Mum and Dad have had my nephew living with them for the past 4 yrs due to my sister moving and my nephew not wanting to change schools. He has finished school now apart from exams and is returning to live with his mum in august. His CB and CTC will be switched back to his mum.

Is my dad still going to be able to claim working tax credit or will it stop.
He wont have any dependants living with him. He was made redundant a few years ago from his main job of 30 yrs.

He is nearly 60. He has a part time job in the local co-op but he suffers with Osteo Arthritis in his hand and foot which causes him alot of pain and cant manage long periods of time on his feet. He is VERY reluctant to go down the benefit route. Is there any thing else he could be able to look at if his WTC did stop. The house is payed for has been for 11 yrs but it seems to be alot of people in my dads generation property rich and cash poor. My brother has just moved back home from uni and is starting his nurse training in sept he is 21 iv told my mum she needs to be charging him board as he has managed to support himself for the past 3 yrs i dont agree it should be free now when they are stuggling for cash.
I have suggested selling up and renting and living off the procedes but where would he stand on capital gains. Any advice would be great. If he can still claim WTC then it will be fine but im sure they will stop it because of dependants.

themonkeybutler

If he's working less than 30 hours, then yes his WTC will stop. If, however, he's registered as disabled, he may still be able to claim WTC if he's working over 16 hours.

Indie_Kid

themonkeybutler wrote: »

If he's working less than 30 hours, then yes his WTC will stop. If, however, he's registered as disabled, he may still be able to claim WTC if he's working over 16 hours.

There is no such as being registered disabled any more.

http://www.hmrc.gov.uk/research/report-47-final.pdf

sleepless_saver

mum24boys wrote: »

I have suggested selling up and renting and living off the proceeds but where would he stand on capital gains. Any advice would be great. If he can still claim WTC then it will be fine but im sure they will stop it because of dependants.

Unless their house is worth a lot, it's not likely to be enough to see them through the next 20-30 years, plus they would be facing a move and the insecurity of rented housing. So it's not something to be undertaken without a lot of thought. (There wouldn't be any capital gains tax though as it's their principal residence, but a lump sum would disqualify them from means tested benefits for quite some time.)

Equity release would be possible but he is quite young to be thinking of that.

If they have any spare space, can they rent out a room?

Have a look at entitledto.com to do a quick benefits check. He may not like the idea of benefits, but at some point e.g when he retires they are likely to need support from benefits (council tax benefit, pension credit) to manage. We don't have enough information from you to say if he is entitled to WTC or not.

sunnyone

mum24boys wrote: »

Hi my Mum and Dad have had my nephew living with them for the past 4 yrs due to my sister moving and my nephew not wanting to change schools. He has finished school now apart from exams and is returning to live with his mum in august. His CB and CTC will be switched back to his mum.

Is my dad still going to be able to claim working tax credit or will it stop.
He wont have any dependants living with him. He was made redundant a few years ago from his main job of 30 yrs.

He is nearly 60. He has a part time job in the local co-op but he suffers with Osteo Arthritis in his hand and foot which causes him alot of pain and cant manage long periods of time on his feet. He is VERY reluctant to go down the benefit route. Is there any thing else he could be able to look at if his WTC did stop. The house is payed for has been for 11 yrs but it seems to be alot of people in my dads generation property rich and cash poor. My brother has just moved back home from uni and is starting his nurse training in sept he is 21 iv told my mum she needs to be charging him board as he has managed to support himself for the past 3 yrs i dont agree it should be free now when they are stuggling for cash.
I have suggested selling up and renting and living off the procedes but where would he stand on capital gains. Any advice would be great. If he can still claim WTC then it will be fine but im sure they will stop it because of dependants.

If they only own the family residance they wont pay capital gains tax, thats for second homes, shares, bonds etc.

toonbaz

if not working 30 hrs then will need to be working 16 hrs+ and in reciept of one of the following benefits

-Disability Living Allowance
-Attendance Allowance
-Industrial Injuries Disablement Benefit, with Constant Attendance Allowance for you
-War Disablement Pension, with Constant Attendance Allowance or Mobility Supplement for you

-a vehicle provided under the Invalid Vehicle Scheme

mum24boys

sleepless_saver wrote: »

Unless their house is worth a lot, it's not likely to be enough to see them through the next 20-30 years, plus they would be facing a move and the insecurity of rented housing. So it's not something to be undertaken without a lot of thought. (There wouldn't be any capital gains tax though as it's their principal residence, but a lump sum would disqualify them from means tested benefits for quite some time.)

Equity release would be possible but he is quite young to be thinking of that.

If they have any spare space, can they rent out a room?

Have a look at entitledto.com to do a quick benefits check. He may not like the idea of benefits, but at some point e.g when he retires they are likely to need support from benefits (council tax benefit, pension credit) to manage. We don't have enough information from you to say if he is entitled to WTC or not.

I agree that selling would not be such a good idea they are still young. My brother has just moved back from uni and is starting his nurse training in sept. So far he is not paying anything and mum does not seem keen but im sure as she has less money she will change her mind. He can rent the room from them. They are very frugal people anyway and i dont know what there finances are like (not my business) but thought id see what is out there.
Got alot of info from direct.gov and the entitledto website but cant do it for them as i have no idea of figures as he already gets his work pension and no idea how much so will pass these on.
Thanks to everyone who replied its been very helpful.