Tax Credits Dependency question

Sparkles87

Checking this situation for a friend's son who's asked for some advice. Have numbered the questions so hopefully it's clear.

He's 22 (A), his partner is 25 (B), she has child from previous relationship whose 7 and they have a baby together. They are separating and plan to split custody 50/50 of the baby.

1. B wishes to claim the baby's child benefit and therefore, tax credits. She believes that she will get income support - but has no work or signing on history for at least six years, so will this be the case? Or will it be reduced due to no NI? She gets no maternity benefits for the baby at present.

2. A currently claims working tax credit as they are in a couple. Am I correct in thinking that he will no longer qualify as he's under 25 unless baby is his dependent?

3. Is baby only A's dependent if he claims the child benefit etc. for her?

4. Can the child tax credit payments be split between parents in this 50/50 instance?

5. The amount of working tax credit that A is entitled to equals more than B can get in income support (should she get it) so I wondered if it might make sense for A to claim for baby and then get something in writing from a solicitor to say that the payment must be split equally?

Thanks

FBaby

This is going to be a difficult situation if they are not mature, responsible and amicable and want to the best for the children. The problem is that both are benefiting from claiming benefit for the baby. Her, because without claiming for the baby, she will be expected to be looking for work. Him because without the baby, he can't claim working tax credits.

This arrangement will only work out if they seat together and come up with an agreement, as in who is better off claiming and what they will agree to share with the other.

Horseunderwater

I agree this is a difficult one.
A will lose his WTC as he is under 25 years old.
B will keep CTC and CB and yes she can claim Income support until the baby reaches their 5th Birthday.
If they are going to be living in 2 different homes then both will be able to claim help with their rent, but it will only be the shared room rate as both are under 35 years old and they will need to look it up on their local council website. As to how much they may get I have no idea but worth investigating. Both would be entitled to the single occupancy rate of 25% off council tax and she would possibly get majority of hers paid under benefit rules. They can use an on line benefit checker from Entitled 2 to check different scenarios out.

princessdon

Only 1 person claims benefits dont acknowledge shared care. which address is used for school, who is NOk, which address will doctors have etc?

Housing benefits if claiming can also be affected. Eg he will only get shared accommodation rate of HB,

Financially she will get more benefits as on Income SuPport- I can't see her giving the benefits up - shed have to sign on at JC, go on work programmes, work trials etc. on IS she's left alone until child is 5

He needs to get more hours and work full time and claim WTC.

Dunroamin

Whoever is considered the NRP will need to pay child maintenance to the other partner, although allowances are made for the nights s/he has her.

Sparkles87

princessdon wrote: »

He needs to get more hours and work full time and claim WTC.

He is doing 30 hours on minimum wage unfortunately for him and no matter how much he does then he won't get WTC as under 25.

Thanks for the advice everyone. Unless B is refused income support then I suppose A is stuck even though they'll have less money available between them.


He will have her one night a week until she is 1, as they say he is not entitled to any until then but she will agree to one. So will he need to pay her approximately 15%?

pmlindyloo

Horseunderwater wrote: »

I agree this is a difficult one.
A will lose his WTC as he is under 25 years old.
B will keep CTC and CB and yes she can claim Income support until the baby reaches their 5th Birthday.
If they are going to be living in 2 different homes then both will be able to claim help with their rent, but it will only be the shared room rate as both are under 35 years old and they will need to look it up on their local council website. As to how much they may get I have no idea but worth investigating. Both would be entitled to the single occupancy rate of 25% off council tax and she would possibly get majority of hers paid under benefit rules. They can use an on line benefit checker from Entitled 2 to check different scenarios out.

Whoever has the 2 children will be entitled to the 2 bed local housing allowance. It is only the single one who will be entitled to the shared room rate.