WTC and rent

rich4rd83

Hi guys. I reckon this may be the place to get an answer...

This is my situation....- 25 and live with uncle in a housing association property.its uncles name on tenancy and he is retired. There is 1 other person at property and they pay large chunk of rent as they work.my situation is that I'm on ESA but seriously trying to find work.the rent is 100, i pay 14,uncle 0,and other lodger 80 ish.

I'm aware that if I work 16 hrs I'll get £91.70 working Tax credit(non taxable).but what I can't work out is if this will increase my rent. The council work out rent in bands.and without WTC income from 16 hrs at nmw would be 100 ish,so rent 14.but with WTC is 192,so will WTC be taken into account,when calculating rent?

The reason I'm keen to find out is I want to do some work for free to gain experience,in a profession I have a qualification in ,but no experience.so work in evening for 16 hrs PW.and in day for free.

I'm on ESA at present ,used to work all time,i dont feel ashamed to be on esa because im deffinetly in need of it,but really looking to take steps ,into changing situation..thanks for reading .any replies welcome .thankyou .Richard.

enfield_freddy

was WTC not raised to 20 hrs minimum , back in 2012?

pmlindyloo

rich4rd83 wrote: »

Hi guys. I reckon this may be the place to get an answer...

This is my situation....- 25 and live with uncle in a housing association property.its uncles name on tenancy and he is retired. There is 1 other person at property and they pay large chunk of rent as they work.my situation is that I'm on ESA but seriously trying to find work.the rent is 100, i pay 14,uncle 0,and other lodger 80 ish.

I'm aware that if I work 16 hrs I'll get £91.70 working Tax credit(non taxable).but what I can't work out is if this will increase my rent. The council work out rent in bands.and without WTC income from 16 hrs at nmw would be 100 ish,so rent 14.but with WTC is 192,so will WTC be taken into account,when calculating rent?

The reason I'm keen to find out is I want to do some work for free to gain experience,in a profession I have a qualification in ,but no experience.so work in evening for 16 hrs PW.and in day for free.

I'm on ESA at present ,used to work all time,i dont feel ashamed to be on esa because im deffinetly in need of it,but really looking to take steps ,into changing situation..thanks for reading .any replies welcome .thankyou .Richard.

Are you on income based ESA? Or contribution based? Have you looked into doing Permitted work? (https://www.gov.uk/employment-support-allowance/eligibility

This would not affect any HB or ESA but it needs to be under 16 hours so you could not apply for working tax credits.

If you do not do Permitted work then any money you earned will be deducted from your ESA award? I believe there is a small disregard. (£20?)

And are you entitled to working tax credits? To do only 16 hours you need to be entitled to the disability element. Are you?

Have a read of this:

http://www.hmrc.gov.uk/leaflets/wtc2.pdf

scroll down to page 12.

As regards housing benefit you need to be liable for the rent (you are not as you are not on the tenancy agreement), Are you a lodger? Do you have a lodger's agreement? Any 'rent' that your uncle receives from you would affect his benefits.

At the moment you are a non dependent as regards your uncle's HB.

Not even sure if you would be entitled to HB as you are living with a close relative.

rich4rd83

Don't think so.but if was I'd do 20. Think it 30 hrs if over 25,but different rules if coming of ESA.I used the calculator on this site.its very good.

rich4rd83

I would come off ESA to work 16 hrs.and then try and do free work during day.ESA wouldn't come into it.I just need to no if WTC are factor when calculating rent liability. Thanks for reply.I am entitled to disability element.

lighting_up_the_chalice

WTC are included as income when calculating the non-dependent deduction.

rich4rd83

Thanks,I'll factor that in...:)

pmlindyloo

lighting_up_the_chalice wrote: »

WTC are included as income when calculating the non-dependent deduction.

I'm confused by the OP's question.

He talks about the other lodger insinuating that he is a lodger too but then talks about bands which I now take to be the non dependent deduction bands.

Also confused about the use of the word 'rent'.

However, I am sure he will sort it out one way or another!

My question is- if there were two non dependents and they were both earning a reasonable amount, what would happen if the total non dependent deductions were over the £100 a week rent?