Moving in with GF who claims Tax Credits

zagfles

sh1305 wrote: »

Other costs will drop too.

Of course they will - the point is which will drop more. The OP has worked out that they'll be worse off, and having done a similar calculation for a friend of mine in similar circumstances I can believe him. It is easily possible to be far worse off living together even with all the savings of having just one household.

Indie_Kid

zagfles wrote: »

Because her tax credits would drop by several thousand. eg if he earns £20,000 her tax credits could drop by up to £7800.

But the overall household income won't drop. Hmmm - £20,000 more income or £7800 more in tax credits...

No idea where you go the £7800 drop from?

zagfles

sh1305 wrote: »

But the overall household income won't drop. Hmmm - £20,000 more income or £7800 more in tax credits...

No idea where you go the £7800 drop from?

It's not "£20,000 more income", that's a gross figure. Minus tax, minus NI, minus all the non-household financial commitments the OP will have (eg car, travel to work), minus all his personal costs (food, clothing etc). And minus the drop in tax credits and maybe other benefits eg council tax benefit, free prescription, dentist etc

The "7800 drop" comes from the 39% withdrawal rate in tax credits.

Blakey1982

thanks for all the posts. Zagfles has got it in one. She currently gets around 80% of the child car paid for among all the other monies previously mentioned. She also gets CSA from the biological father (although he is currently out of work) which would also drop as they would take my income into account (confirmed by the CSA).

You all have a point and I too find it extremely hard to believe that moving in as a couple means you are worse off but after re-doing sums, speaking to my financial advisor father, using the benefits calculator for all possible outcomes and an reading many many topics on here it is, unfortunately, true.

We think we are going to wait for the 6 months (which works out as my tenenancy can be signed for a 6 month extension) an then look into it again. Obviously the drop in mortgage from 7.3% to whatever it is at the time will be the obvious difference but will the estimated £400 saving on the mortgage and all my bills (rent etc) equate to what she will lose.........i think so.

Mojisola

Blakey1982 wrote: »

She also gets CSA from the biological father (although he is currently out of work) which would also drop as they would take my income into account (confirmed by the CSA).

I would double-check this. I understood that the absent parent's income was the only one taken into account when payments were arranged.

Blobby8_2

Either you want to commit or you dont, money should have no bearing whatsoever.

Caz3121

Blakey1982 wrote: »

She also gets CSA from the biological father (although he is currently out of work) which would also drop as they would take my income into account (confirmed by the CSA).

this would only be the case if the case was pre-March 2003 and is classed as CSA1 - in which case if the parent with care has a live in partner it is deemed that they contribute to the housing costs. If the CSA case was opened after that date it will be CSA2 which completely ignores all income apart from the non-resident parents and has a straight % calculation

darich

Mojisola wrote: »

I would double-check this. I understood that the absent parent's income was the only one taken into account when payments were arranged.

I live with my gf and her daughter.
Daughter's absent father pays CSA money and it is calculated on his salary alone.
My salary is not considered in the calculation so your understanding would appear to be correct....at least in my case it is.
I appreciate that a later poster says things may have changed so maybe dates are significant.

petrolhead.

Caz3121 wrote: »

this would only be the case if the case was pre-March 2003 and is classed as CSA1 - in which case if the parent with care has a live in partner it is deemed that they contribute to the housing costs. If the CSA case was opened after that date it will be CSA2 which completely ignores all income apart from the non-resident parents and has a straight % calculation

Hi, I was just about to jump in when I noticed your posting. Yes you are perfectly right. A live in lover is deemed to be supporting the household including the child that is not his.

This happened in a family I know. The lover is a solicitor who earns a reasonable salary. The absent father had his CSA payment reduced because it was deemed that her boyfriend was maintaining the child. To say the least she was not happy that he was able to do this, but it all worked out well in the end. They got married and the absent father's payments ceased altogether as it was causing more trouble than it was worth.

I have heard (but whether this right or wrong) but parents with care and responsibility in circumstances like these, try to have the case moved over to CSA2 in order to stop this happening. Right or wrong? I have no idea other than money should never get in between parents and children!

Indie_Kid

zagfles wrote: »

It's not "£20,000 more income", that's a gross figure. Minus tax, minus NI, minus all the non-household financial commitments the OP will have (eg car, travel to work), minus all his personal costs (food, clothing etc). And minus the drop in tax credits and maybe other benefits eg council tax benefit, free prescription, dentist etc

The "7800 drop" comes from the 39% withdrawal rate in tax credits.

£20k minus tax & NI would be much more than £7800!