Tax Credits and Student Loans?

laurenweird

This may be a silly question but I can't seem to find a straight answer when I look on line.

I am 24 and a mother to two young children. My partner works full time at the moment but on apprentice wage (just over £5000 a year). I have successfully been accepted on to a teaching course starting this September and have sorted out Student Finance. I am entitled to just under £9500 to be paid to me over the course of the year (a mixture of loans and grants).

I understand I will no longer be entitled to housing benefit but what about tax credits? At the moment we get the maximum amount of child tax and my partner get about £90 a week in working tax. Are tax credits affected by Student loans?

J90BMH

The tax credit office told me the loan part doesnt count towards your income because you will be paying this bit back, but the grants do.

Erinnire

laurenweird wrote: »

This may be a silly question but I can't seem to find a straight answer when I look on line.

I am 24 and a mother to two young children. My partner works full time at the moment but on apprentice wage (just over £5000 a year). I have successfully been accepted on to a teaching course starting this September and have sorted out Student Finance. I am entitled to just under £9500 to be paid to me over the course of the year (a mixture of loans and grants).

I understand I will no longer be entitled to housing benefit but what about tax credits? At the moment we get the maximum amount of child tax and my partner get about £90 a week in working tax. Are tax credits affected by Student loans?

Are you sure you wont qualify for HB? I believe that some grants aren't taken into account as income for HB.

Not 100% sure for tax credits but I was under the impression there was also some student finance that is disregarded for tax credits.

EDIT: Here is some links this one is from 2005 but I think the rules remain the same just the amounts are different: http://webarchive.nationalarchives.gov.uk/20121015000000/http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_070816

http://www.thestudentroom.co.uk/showthread.php?t=2372238

laurenweird

Thank you both kindly for your replies. I probably won't know for certain until I inform them and just see how it goes, but if I had some idea I better know my financial situation in the coming months

redmel1621

Tax credits are not affected by student loans or grants. The one and only grant they count is the adult dependent grant, which I assume you don't get as your husband has an income.

HB and CTB do take most of the loans/grants into account and you are probably right, you may not get any HB. You may also be required to pay some Council Tax. Do make sure you get your CT exemption cerificate though as this will ensure you get a 25% reduction.

Mel x

smithyjules

Its the Adult Dependent Grant that is counted for tax credits as 'any other income'. We still received adg when my husband was at uni even though I work, but we do have 2 children hth. If you already claim hb I would do a change in circumstances producing your student loan breakdown. I would also get a certificate from student services showing you are a full time student with the finish date on too. This needs to be shown to the council tax team.