Tax credit and young apprenticeship

FabuLass

Hi, my 16yo daughter has an interview tonight for a hairdressing young apprenticeship for which I believe they recieve just under £90 a week. She would be trained as she worked and after 18mths have an nvq level 2 in hairdressing.

Does anyone know if this means she would still be classed as a qualifying young person re tax credits or is she a worker and no longer would qualify? Also would this stop her child benefit too?

We are in Scotland if this makes a difference...
thank you in advance, Fiona x

Oldernotwiser

http://www.hmrc.gov.uk/taxcredits/keep-up-to-date/changes-affect/family-change/child-16.htm

ETA

Are you sure she's on a Young Apprenticeship as you usually do these whilst still at school?

"Young Apprenticeships

You can complete a Young Apprenticeship in Years 10 and 11. Young Apprenticeships are available in work related subjects including engineering and health and social care.

On a Young Apprenticeship you will work towards an NVQ or a vocationally related qualification such as a BTEC. You will also complete 50 days work experience to help you find out what it’d be like to get a job in the industry.

Not all schools offer Young Apprenticeships. Log on to Routes Ahead or have a look in your school’s options booklet to find out what’s available." Connexions.

FabuLass

Thank you for that link, it explains that in Scotland a 'modern apprenticeship' ( I must've misread job ad) does not count as an approved training course so we will indeed lose tax credit.

Ahhh Im disappointed, I have mixed feelings tbh, we cant afford to lose the money....buuuut if she gets the job, I will have to be happy for her.

Thanks for your help x

Oldernotwiser

But her contribution towards her keep should go a reasonable way towards covering the benefits you lose.

FabuLass

Well I get £140 for 3 qualifying young people, so I figure I will lose a third of this per week....so £46, we will also lose her child benefit of £13 per week, my eldest daughter has just started college and lost her child benefir too as she is doing an HNC, but we still get tax credit for her as she is a student. So we will be £76 down per week....we have been struggling financially for some time, only just meeting our bills, but so far doing so with no arrears, however I am really starting to panic that we will end up missing payments.

lorelai34

If I've understood your last post correctly you are not getting child ben for your child doing the HNC but you are getting ctc for her? This is actually incorrect as a HNC is classed as advanced education and so you shouldn't be getting ctc for her either.

FabuLass

Thanks for that, will check it out as don't want to be overpaid then have to pay back later.

gravitytolls

Please do. We received CTC but not CB for one of ours when he was doing an apprenticeship. We told TC, and they made their decision, but then decided at renewal that we weren't entitled and had been overpaid. Grrrr.

FabuLass

My hub is going to call tonight, I dont want to be owing them anything, at least so far its only been a cpl weeks.

Oldernotwiser

lorelai34 wrote: »

If I've understood your last post correctly you are not getting child ben for your child doing the HNC but you are getting ctc for her? This is actually incorrect as a HNC is classed as advanced education and so you shouldn't be getting ctc for her either.

That's definitely right.

In addition, if she's doing the HNC full time she should be in receipt of the full student funding package and able to pay her way at home.