What does "Household Income" mean for working tax credits?

jahtel

We are a couple on low combines income and our working tax credit is based on our joint claim. I have recently come across that they take into account other "household income" for tax credits which I have taken to mean our income as a couple and any income say a "child" may be earning/getting benefits who is under 21 and lining at home.

Does "Household income" mean that the income of say a son (28 years old) living at home is also taken into account? We don't expect him to pay us any rent etc because he is saving up for deposit for a flat or house and expect him to be around for few more years as its difficult to buy a house it seems without having about 30% deposit on the value on a house now a days.

thanks

rogerblack

Income counts your and your partners income.
Income of 'non-dependants' is not counted.

skintandscared_2

Not passing judgment, but slightly unsure this is legally correct?

I'm confused. The parents have a low combined income which they can't afford to live on, but don't charge their adult son any rent (so he can save for his own place) and instead claim top-ups to their own meagre wages?

So "children" aged 28 can live at home, rent free, for as long as they like and the state will support the parents who CHOOSE not to take money from their working child (who is an adult)? Is that how it works? Seriously?

nannytone_2

that is a purely moral point.

working tax credits are based on the OP's houehold income. if they can manage on that amount and still allow their son to live rent free, then it is their choice.

im suprised that a 28 year old is willing to sponge of his parents when he knows they are struggling.

davehughes182

I didnt read anywhere that they are struggling or that their son was sponging...

nannytone_2

you wouldnt consider a 28 year old working man that pays his parents no rent to be sponging?

and if they werent struggling then they wouldnt need working tax credits

davehughes182

I wouldnt consider a 28 year old living at home sponging no. Without knowing what he does for a living and if he contributes to the household in other ways then I dont see how its possible to label him in such a way.

And becasue people claim Tax Credits this automatically means they are struggling? I know plenty of people who can live without TC but as they are entitled to it, then they claim it!

whiteg2

nannytone wrote: »

you wouldnt consider a 28 year old working man that pays his parents no rent to be sponging?

and if they werent struggling then they wouldnt need working tax credits

If they were truly struggling then they would have no choice but to receive rent from their son - can I assume that if they did it may effect their tax credits?

nannytone_2

no it wouldnt affect their tax credits.
he would be making a contribution towards his living expenses (as he should)

and i assume he isnt on a low wage if saving for his own home would indicate that he is capable of getting a mortgage once he has a deposit

whiteg2

The whole system is wrong - no wonder the country is in debt..

harrys_dad

Having an adult non-dependent affects many means tested benefits, as defined here http://www.entitledto.co.uk/help/nondependants.aspx

I do not know how this applies to WTC, but others will tell you. It does however seem to me to be totally wrong that a working 28 year old contributes nothing! How does this help them to learn what it is like to be independent?