Becoming single parent - Tax credits

Brighty

Hi guys

Situation is that it looks like my wife will soon be leaving, taking the 2 kids and moving from the NE back down to the SE and i'll be staying here. Not sure yet if this will be a perm split or if she will maybe come back or i'll move down.

Trying to figure out how she'll survive down there and wonder what she'll be entitled to in terms of tax credits or other benefits. Trying to use the calculator, but am a bit confused due to some complicated issues regarding property we own.

She'll be working 16+ hrs a week, has some rental income, plus paying for childcare, but what i'm confused about is the income from property part and also income from me in terms of child maintenance.

Property 1: Our NE home, owned 50/50 me/her, mortgaged, i'm staying in it and will be paying the mortgage

Property 2: In SE, Owned outright 50/25/25 my brother/me/wife, Currently let, but intention is wife and kids will move in and live rent free, i'll have to reimburse my brother so he doesn't lose out.

Property 3: In SE, Owned 50/25/25 my brother/me/wife with a mortgage, Currently let

Property 4: In Lincs, Owned outright 50/25/25 my brother/me/wife, Currently let

So what of those properties does she have to declare her share of the value of? Just 3&4 or 1 as well? If 1 as well, surely the fact she only owns 25% of property 2 should offset that? Will i have to give her, and therefore her declare, child maintenace on top of the free house, or is the fact we are letting her stay for free in 3/4 of the house that is ours enough?

Hope thats all not too confusing

Thanks

Brighty

Indie_Kid

I can't answer your questions about the properties; but child maintenance is disregarded in full for benefits. She may need to (someone correct me if I'm wrong) that she's getting some CM; but it will be ignored.

Brighty

blondebubbles wrote: »

She will need to declare any rental income she receives. As only 3 and 4 are let out that's all that is taken into account. There is info here - http://www.hmrc.gov.uk/manuals/tctmanual/TCTM04006.htm (I don't understand half of that though!)

Child maintenance isn't included as income and doesn't need to be declared to tax credits.

Thanks

According to the calculator on here. She also has to declare any property she owns that is not her home, and that counts as savings

Brighty

Icequeen99

If you don't know whether the split is permanent, then because you are married you would still be a couple for tax credits and so you would need to make or stay (if you are already claiming) on a joint claim.

She can only claim as a single person if the separation is likely to become permanent from the outset. HMRC may well investigate down the line and will want evidence of that.

IQ