What constitutes income?

sweetbutternut

When declaring my household income for the purposes of claiming tax credits, do I have to include Child Benefit in that income? Confused because I put in a council flat application and the notes say that I have to include Child Benefit as part of my income?? Any help appreciated. Thanks!

xylophone

See https://www.gov.uk/claim-tax-credits/what-counts-as-income

sweetbutternut

Thanks xylophone. According to that info, child benefit is not included to claim tax credits. That's why I don't understand why it is included when calculating income for a council flat application. Can anyone shed light on this?

Cyberman60

Good heavens !! I'm staggered. In my view Child Benefit is income. Not including it in the calculation of WTCs is scandalous and explains why multi-child families get so much additional benefit income.

After all it's regarded as income for those on over 50K.

The sooner child benefit is abolished or restricted to only 2 kids the better IMO. :mad:

Just one child is worth 20 quid times 52 = 1,040 quid annually !! :rotfl:

[Deleted User]

Although it should be considered a benefit, Tax Credits are what they are, just credits, therefore not taxable income. I am not sure what happens if/when tax Credits will be incorporated in Universal Credit.

xylophone

That's why I don't understand why it is included when calculating income for a council flat application. Can anyone shed light on this?

Assessing your ability to pay the rent?

Housing_Benefit_Officer

Providing proof of Child Benefit when applying for a Council property is to prove you have custody of a child or children otherwise anyone could make up numerous children to get a 3 bedroom house.

[Deleted User]

Cyberman60 wrote: »

Good heavens !! I'm staggered. In my view Child Benefit is income. Not including it in the calculation of WTCs is scandalous and explains why multi-child families get so much additional benefit income.

After all it's regarded as income for those on over 50K.

The sooner child benefit is abolished or restricted to only 2 kids the better IMO. :mad:

Just one child is worth 20 quid times 52 = 1,040 quid annually !! :rotfl:

you seem jealous?i wonder why?:eek:

missapril75

Cyberman60 wrote: »

...In my view Child Benefit is income. Not including it in the calculation of WTCs is scandalous...

Not really.
These things are built into the system. Whether it's deducted or not, the calculation and various allowances would simply be adjusted to achieve the required result.

sweetbutternut

Housing_Benefit_Officer wrote: »

Providing proof of Child Benefit when applying for a Council property is to prove you have custody of a child or children otherwise anyone could make up numerous children to get a 3 bedroom house.

I can understand that, but my council wants the Child Benefit incorporated into our household income. I have no problem with that, but it is confusing because when it comes to tax credits, we are earning less than £20 000, but when it comes to the Council Property, we are in the £20K to £25K earnings bracket. So basically, including child benefit of £984 takes us from one bracket into the next one.

sheramber

The council want houshold income

Tax credits want taxable income

There is no link bewtween the two departments.

Each sets their own criteria for their own purpose.