Tax Credits - Approx figures and declaration of rent received

Bootsy

Hi all,

We have just found out my wife is expecting our first child :T
I work full time (37 hrs) and earnt about £24,000 before tax last year and my wife was a student nurse so therefore her bursary is disregarded as income. She will not be working once the baby is born in July either. She will however receive £53 a week Carers Allowance to look after her mum now she has left her course.

I rent out my property but at a loss as the rent I receive does not cover the mortgage payments. I also pay rent on my current home.

Do I need to declare the rent I receive and will it affect my claim?

Does anyone have any approx figures as to what tax credits we may be entitled to on the above income. We have no significant savings. We won't be paying for a child carer either.

I have tried the online calculator but it contradicts what many people have received themselves in similar circumstances.

Thank you in advance.

Paul

DX2

Her carers allowance will also be calculated into the equation as it is a taxable benefit. Just running out the door this minute, will pop back later to help if possible.

Bootsy

I agree, I thought the Carers Allowance would be taken into account.

I am still unsure about whether the rent I receive on my property would affect my entitlement even though the difference between my mortgage/rent received is about £70 per month loss

tinkertaylor05

Have you tried the calculator? Not done one myself for a while so ca't remember the info required but may give you an idea http://www.hmrc.gov.uk/taxcredits/payments-entitlement/entitlement/question-how-much.htm HTH
oh and congrats on the pregnancy!

merlin68

You will have to declare the rent and the carers allowance, highly unlikely you'll recieve any benefit on that income. With the changes coming in.

janeawej

Do they not ask you if you own another property which you dont live in? as if you have equity in this property, wether mortgaged or not it is counted as savings and you are not entitled to tax credits? I may be totally wrong of coures but I thought that you werent entitled to tax credits if u owned 2 properties

DX2

Paul have a gander over this and the link provided hope this helps.


Property income

Include income from property in the UK that you own or rent.
Don't include:

• income that's covered by the Rent a Room scheme
• property income that you've included as part of your self-employed income

If your rental property made a loss, you can use a working sheet to help you work out what to enter.
http://www.hmrc.gov.uk/taxcredits/start/claiming/income-hours/other-income.htm