Benefits Query

EMT123

I was hoping to get some advice on the financial implications of moving in with my partner and her young child.

I have recently moved to the South East to start a new job, and my new employer is funding a B&B for 3 months to allow me a chance to find a suitable place to live.

I have a single bedroom shared ownership apartment in Yorkshire, which I have owned 50% of for 2 years and which I am currently renting out with the temporary permission of my mortgage company and housing association. The rent charged covers my mortgage payment, rent payment and leaves £100 spare to cover repairs/gas checks etc.

My partner and her 3 year old son are currently renting privately in Yorkshire, claiming HB (LHA) for a 2 bedroom house and receiving income support with child tax credits as a single parent claimant.

My partner and I are hoping to find a 2 bedroom property in the South East near my new employment, where we can live together and raise the little one.

My salary is £18k with approximately an additional 20% uplift for working anti social hours. My pay will change every month depending on shifts and overtime. My pay will also increase each year as I am on a training programme in conjunction with a University, for which my employer deducts £200 per month in tuition fees. I am therefore in no position to support £850-ish of rent, in addition to clothing and feeding 3 people, as well as running a car etc.

Would anybody be able to advise regarding the following:

1) The local LHA rate for a 2 bedroom property is £850, would I be entitled to a partial housing benefit payment as joint claimants?
2) Will owning 50% of a 1 bedroom apartment in Yorkshire affect my claim, whether as capital (I've only made 24 mortgage payments) or due to the rent being received? If so, how?
3) Will we be entitled to child tax credits, and if so, what income will it be based on as my partners currently claiming as a single parent?
4) Will my full salary count as income even though I lose £2400 to tuition fees and occupational pension contributions (both taken before tax) or will they be disregarded?

I'm really hoping that we will be able to make this work financially somehow so any help or advice will be greatly appreciated.

My partner wants to move down to the South East and rent a 2 bedroom property as a single parent HB (LHA) claimant, whilst I rent a room in a shared house and only stay over at hers for 2-3 nights per week. But I would prefer to live together 7 days per week if possible.

Thanks guys.

marliepanda

The rent will be classed as income, less allowable expenses (mortgage interest, not capital)

However it sounds like your partner is currently fraudulently claiming single parent benefits, (and wants to continue!) you need to stop that immediately. She is not single.

Jobseeeker

marliepanda wrote: »

However it sounds like your partner is currently fraudulently claiming single parent benefits, (and wants to continue!) you need to stop that immediately. She is not single.

The way I read it, she lives up North and claims HB, he lives down South in a B&B by himself. So there's no fraud just now.

Jobseeeker

EMT123 wrote: »

1) The local LHA rate for a 2 bedroom property is £850, would I be entitled to a partial housing benefit payment as joint claimants? Its possible depends on number 2).
2) Will owning 50% of a 1 bedroom apartment in Yorkshire affect my claim, whether as capital (I've only made 24 mortgage payments) or due to the rent being received? If so, how?
Yes, it will affect it. The equity in your house counts as capital so may make you ineligible. Also the rent you receive minus expenses (mortgage payment is not an expense, only the interest) counts as income. So this will be added to your salary

3) Will we be entitled to child tax credits, and if so, what income will it be based on as my partners currently claiming as a single parent? You would make a new joint claim. It would be based on your combined income.
4) Will my full salary count as income even though I lose £2400 to tuition fees and occupational pension contributions (both taken before tax) or will they be disregarded? Not sure "Housing Benefit Officer" may know

.

Yes you also have the option of living separately and staying over a few nights but its a bit of a grey area and you have to be careful about neighbours etc

FBaby

You will be able to claim child tax credits and maybe some HB. However, your partner's son will get funding for nursery, so maybe you partner could look at a part-time job and of course, from next year, he will be at school full-time, so will be able to take on more hours to contribute towards the household. The good thing about the SE is that there are more jobs available.

EMT123

As above, I'm currently living in a B&B over 200 miles away from my partner, so certainly not living together therefore no fraud being committed.

It sounds like I can claim mortgage interest as a legitimate expense, but can I also claim for the rent portion (as it's shared ownership from an HA) in addition to Landlord insurance, letting agent fees etc?

Any idea what documentation I should get together before moving in together and making a claim?

dippy3103

If you rent a room yourself plus travel backwards and forwards yourself this might outweigh any lost benefits from living together.

You sound a decent bloke - start as you mean to go on, with everything above board.

Housing_Benefit_Officer

Rental income for Housing Benefit purposes is=

Rental income - minus mortgage (all the mortgage payment not just the interest element) plus any other expenses such as insurance, repairs, agents charges etc.

Capital value of another property is current market value, minus outstanding mortgage minus 10% = capital value.

Housing_Benefit_Officer

EMT123 wrote: »

As above, I'm currently living in a B&B over 200 miles away from my partner, so certainly not living together therefore no fraud being committed.

If you are living in a B&B 200 miles from your partner this doesn't make the B&B your main home. For benefit purposes your partner's home may be considered your main residence. Doesn't matter if you spend the weekend there or visit a few times a month.

You could be serving in Afghanistan or be on board a ship - this doesn't make the army camp in the middle of the desert or the ship your main home.

Housing_Benefit_Officer

From your gross wage your tax, national insurance contributions and 50% of your pension contributions are deducted. Deductions for tuition fees are not deducted from your gross wage as an allowable expense for benefit purposes.

Housing_Benefit_Officer

Jobseeeker wrote: »

The way I read it, she lives up North and claims HB, he lives down South in a B&B by himself. So there's no fraud just now.

I have successfully had prosecuted for fraud the partner of a well known entertainer. The entertainer travelled around the UK and Ireland and Europe performing so their partner tried to argue they didn't live with them for most of the year and only returned for the odd weekend. Successfully argued that the entertainer partner's main residence was their home.

A couple do not 'split up' because one of them works away from home for a few weeks, few months or part or for over a year.