Is he entitled to tax credits?

chipsandsausages

I promised a good friend of mine I would get some information on tax credits for him, but I'm struggling to find the answer to a simple question and hope someone out there may be able to help me. I have searched all the local government websites so please don't refer me to hmrc.gov.uk as my eyes are going baggy.. lol :-D

My friend is not married, but currently co-habits with his partner and their 5 children. (The eldest is his by a previous relationship and the second child is hers from a previous relationship, but he considers that child his, as he brought her up from a baby).

The relationship has broken down and he needs to leave, but he is on a low income and cannot afford his own place.

If he were to stay temporarily with a relative, or between houses, would he be entitled to working tax credits to top his wages up so that he could afford a place of his own? He currently earns less than £16k, and is aware he'll have to pay 25% of his income to his estranged partner as child maintenance.

What are his options?

Many thanks xxx

DX2

chipsandsausages wrote: »

(The eldest is his by a previous relationship and the second child is hers from a previous relationship, but he considers that child his, as he brought her up from a baby).

Well is his eldest child leaving with him? As I would assume because they co habit and aren't married the mother will have no legal rights over the eldest child.

If he and his son leave then yes he will be entitled to working tax credits and child tax credits and child benefit.

If he leaves himself, is over 25 he will only be entitled to working tax credits, if he works 30 hours per week and earns under £13,300.

chipsandsausages

Thanks for that. His eldest wants to stay with the others. So my friend will be moving out and lodging with a relative and their spouse, who both work. I'm not sure of his exact income, but he works about 42 hours a week and gets less than £7 an hour. If I do the figures, it works out at around £14,500 per annum. He would pay 25% in child support which wouldn't leave him enough to live on. Is there anything he can do?

Russe11

I tried to help some friends with tax credits, conclusion was they had to fill in forms and it seemed like to much trouble to get 20quid extra a week, thats rights for a couple hours tops to fill out some forms for 1k was all to much trouble.

You can lead a horse to water....

chipsandsausages

He'll fill the forms out, there's no problem there. His problem is "can he afford to leave the relationship". Does he leave and end up homeless? or stay and put up with the bad times because his salary won't allow him to move on?
His cousin won't be able to afford to put him up forever, so he just wanted to know if tax credits would help him with living expenses. He can't apply until he actually leaves, and if he does that and ends up with an extra £20 a week, that will hardly help him with rent. x

DX2

£14,500 means he won't be entitled to tax credits. I am unsure maybe he could claim local housing allowance to help with his rent if and when he moves out.

Oldernotwiser

chipsandsausages wrote: »

If I do the figures, it works out at around £14,500 per annum. He would pay 25% in child support which wouldn't leave him enough to live on. Is there anything he can do?

If he can claim LHA, the figure will only be based on 1 bedroom accommodation. Whether he can claim anything will depend on the rent he pays and the appropriate LHA.

chipsandsausages

It doesn't sound too promising for him then. If he's in one-bedroomed accomodation then his kids wouldn't be able to stay overnight with him. I think he's better staying put for the time being and just putting up with the arguments. It just seems unfair that he can't afford to start again. Thanks for all your input :-) I really appreciate it, and I'm sure, so will he xx

Oldernotwiser

Why can't he start again in a 1 bed flat? Overnight stays aren't essential and he's never likely to be able to afford a 4 bed house.