Moving in with someone new and tax credits

Moobag

Hi

I am currently living with my two children and receive maximum tax credits. My boyfriend and I are thinking of moving in together but I want to know how this will affect my tax credits. He was made redundant and so obviously he isn't earning at the min and all his redundancy money has been spent on paying off debts. Will his earnings from last year lower my tax credits or will they take into consideration his nil income?

Thanks in advance

Caz3121

Moobag wrote: »

Will his earnings from last year lower my tax credits or will they take into consideration his nil income?

You will need to work out his income for the full year, depending on when he was made redundant and how much the taxable pay was until that date will affect the amount

Moobag

Hi, thanks for the replies. We worked it out that he earned around £24000 last year and obviously he's now on nothing but is not claiming benefits. I work but am on a low wage. I just feel very confused by the whole tax credits system, if I wasn't living with him while he earned last year will I still get a cut this year if he moves in? Sorry for all the questions!

Moobag

blondebubbles wrote: »

So what would the household income be for 13/14?

The problem with your question is that tax credits isn't based on your income at the time, it's based on your income for the whole tax year. So as we are just about to go into a new one you would need to consider if your partner could start work soon or is it unlikely? Is he looking for work?

Hi


Yes he's looking at the minute. If I added both mine and his incomes for 13/14 it'd be about 28k as like I said, my earnings are very low

Poppie68

You say he isn't claiming benefits what is he living on? Is this something that should also be taken into account?

Moobag

Hi, at the minute he lives with parents and has paid off all debts and paid upfront for things like mobile and insurance so that he was covered whilst looking for work. He has kept back enough money to cover his petrol and food etc for about 6 months but is sure he will be employed way before then.