Tax credits - household income and parents

tomm88

It is an odd one but just wondering if anyone can help.

Due to finance issues me and my wife now live with her parents - paying them £100.00 in cash a month as rent. We don't contribute to any bills as we only pay this £100.00.

We have a 10 month old baby boy, and my wife is not in work as we can not afford childcare costs. Therefore the only income we have is my £15,000 approx and £80.00 a month in child benefit.

What I would like to know is, will the "inlaws" income be considered when it comes to applying for working/child tax credits. None of their income supports us - however I do appreciate that they are paying for their mortgage and bills etc.

I have tried researching but everywhere just says "household income"...the reason I ask is my wife looked into an Open University course and they have advised that household income only means "YOUR FAMILY" (if you have children) and if you are living with parents their income is not included.

Any advice would be much appreciated. Thank you.

Horseunderwater

Give tax credits a ring and ask. If the initial person you speak to does not know, then ask to speak to a senior manager.

dundeediva

No. Its 100% not taken into account. Only the income of yourself and wife is considered. Hope this helps

tomm88

We're going to give them a call - just thought I would check on here incase anyone could advise first.

Appreciate your help dundeediva - do you know this based on experience? I don't want to sound cynical on your advice. I have never claimed benefits before, so I almost feel like I shouldn't be entitled to them - however if I am....with my current situation I want to take advantage of what I am entitled to.

Thank you

Caz3121

have you been living with her parents since child was born? did you have a tax credits claim open before. On your income you should be getting child tax credits and working tax credits totalling about £80 per week

tomm88

No we had our own place (rented) until September - he was born in January. Never had a claim open before.

My wife was employed and was on maternity pay until September too, she had a job for 6 weeks which did not work out and has since been employed, she is not actively looking for work at this moment due to childcare reasons.

I wouldn't have expected £80 per week?! That seems an awful lot for our situation...

Caz3121

this will give a rough guide http://www.hmrc.gov.uk/taxcredits/people-advise-others/entitlement-tables/work-and-child/work-no-childcosts.htm
when calculating last years income (which is what they will ask for) your wife can deduct £100 per week from the maternity pay