Tax Credits, Students and Student Loans

KizzyK_2

I wasn't sure where to put this, more people seem to post in here that have knowledge of the benefit system (being the benefit and tax credit board ) so I was hoping to get some advice / hear of other peoples experience.

I'm working a 40 odd hour week at the moment and get tax credits, i'm off to uni in September and I hope to keep my hours at around the 32 mark (yes I know not ideal but you do what you can to help pay the way ). How would the tax credits be effected by this? Can I still claim them as a student? Is the student loans counted as income somewhere along the line? Equally should I have told student loans that I get tax credits?

Not sure about anything apart from the fact that i've increased my debt and I don't want to find out in 6 months that i've defrauded a government department! :eek:

Oldernotwiser

I'm afraid that I don't know much about tax credits but I do know that your student loan is counted as income; whether you take it out or not. Are you eligible for the maintenance grant as well? You might find this useful on the subject of students and tax credits.

http://www.hmrc.gov.uk/students/how_to_claim_tc_2_1.htm

I wish you all the best but really wonder how you'll cope doing this number of hours. What will you be studying and what sort of work do you do?

KizzyK_2

Oldernotwiser wrote: »

I'm afraid that I don't know much about tax credits but I do know that your student loan is counted as income; whether you take it out or not. Are you eligible for the maintenance grant as well? You might find this useful on the subject of students and tax credits.

http://www.hmrc.gov.uk/students/how_to_claim_tc_2_1.htm

Thanks for that info

I found this while searching and it states that grants and loans for tuition fees do not count, along with disabled students allowance, maintenance loans and loans from the SLC. :T I don't really want to phone them and rock the boat (as it is) as I had enough problems when I started getting TC last year :rolleyes: .

Do I have to tell them im dropping my hours by approx 15? Im still working over 30 hours.


As I said in my first post, I know it isn't ideal but I don't have a trust fund to pay for my uni and the only way I can get a degree is to work at the same time.

Oldernotwiser

Thanks for that; I did say I don't know much about tax credits! I know the loan and grant count as income for IS but I'm sorry I've given you bad advice.

Most people have to work whilst at university, it's just that 32 hours seems an awful lot. Sometimes it's better just to accept that your financial situation is different when you're a student and not try and live as if you have the income of a full time job. (Not trying to be interfering but I've been a mature student twice and these are just my thoughts.)
Good luck.

kelloggs36

Student loans don't count as far as tax credits are concerned but you should declare you tax credits to the Council when applying for your student loan - you get 3/4 of it anyway as it isn't eans tested, but to get the full loan, the last bit is means tested and as you are working so many hoiurs it is unlikely you will get the full loan anyway-although claim for it all and they will tell you what you can have!!

bestpud

Certainly on the old system (may have changed with the new one), student income from work is not counted as income for student finance purposes. Neither are wtc if it is the student who receives them. Our wtc is taken into account as it is paid to my OH but my friend's (also a full time student) isn't because she and her OH work and she receives the wtc.

I have to agree that 32 hours and full time study is not going to be easy!!!

I think it is better to work less hours and get a good degree than work loads of hours and come out with a mediocre (sp?) degree - but that's just my opinion!