What counts as income?

TrainGeek1808

Quick question - not about me, but someone has asked me to check:

Single Mum (recently split from partner) - working 16 hours per week.

4 kids - all in full time education, but 1 starting college and doing part time evening/weekend work.

Does the one at college have to declare their income together with his Mum's as part of the household income for tax credits, housing benefit, etc?

HappyMJ

TrainGeek1808 wrote: »

Quick question - not about me, but someone has asked me to check:

Single Mum (recently split from partner) - working 16 hours per week.

4 kids - all in full time education, but 1 starting college and doing part time evening/weekend work.

Does the one at college have to declare their income together with his Mum's as part of the household income for tax credits, housing benefit, etc?

No only the mum's earned income is taken into account for tax credits. Children can earn any amount of money and have any amount of cash saved in their own name and it does not affect the parents claim.

Housing benefit is a bit different but as long as they are a full time student then their income is ignored as well. If they are not a full time student then they can declare their own income to the council themselves to minimize any deductions.

Full time students are also exempt from council tax.

[Deleted User]

A full time college student for who you are still claiming child benefit/tax credits can work for NO more than 24 hours a week,otherwise it will affect said benefits

HappyMJ

woodbine wrote: »

A full time college student for who you are still claiming child benefit/tax credits can work for NO more than 24 hours a week,otherwise it will affect said benefits

That's not quite how it works. The hours worked by a full time student do not count. The gov.uk site says child benefit stops when a child leaves full time education or training AND starts work of 24 hours a week or more...OR starts an apprenticeship OR starts getting benefits in their own name. Child benefit can carry on for 20 weeks if none of the above occur when child leaves full time education.

A child doing a qualifying course such as A Levels at college can work any number of hours, earn any amount of money and even have saved any amount of money in the bank and it will not affect the parents benefit claim.

Technically a parent has no right to expect an answer to the questions "how much do you earn, how many hours do you work and how much money have you got it in the bank?". It's nice to share that information with your parents but it's not a legal requirement. It's personal private information. The information can be requested directly by the council for a HB claim but they will never ask a child as the answer is not required.

merlin68

http://england.shelter.org.uk/get_advice/housing_benefit_and_local_housing_allowance/applying_for_housing_benefit/housing_benefit_when_other_adults_live_in_your_home
A non dependent deduction does apply if students work in holidays if over 18.
I had the same issue and had to take all her payslips and student certificate into council offfice.

pmlindyloo

Lot of confusing information here because people are using different meanings of the word student.

Basically if someone is receiving child tax credits and child benefit for a 'child' then they are a dependent and as such their income is not counted towards any income based benefits.

So the OP's friend needs to contact tax credits and child benefit to ascertain whether the college course that is being done allows the parent to continue to claim child benefit and child tax credits.

Students who have to report their earnings during the holidays are generally university students who are no longer dependents.

HappyMJ

merlin68 wrote: »

http://england.shelter.org.uk/get_advice/housing_benefit_and_local_housing_allowance/applying_for_housing_benefit/housing_benefit_when_other_adults_live_in_your_home
A non dependent deduction does apply if students work in holidays if over 18.
I had the same issue and had to take all her payslips and student certificate into council offfice.

That doesn't affect too many adult children as most of them would either be 17 during the holidays when a non dependant deduction doesn't apply or have finished A levels by the time they are 18 and as soon as they start work after finishing school or claim benefits in their own name then entitlement to child benefit stops and a non dependant deduction is made to the parents housing benefit payment. Not too many children will be 18 in September and starting the final year of A-Levels finishing next year at 19.

I'm self employed and would not give my full business accounts to my mother for submitting to council. It's far too personal. If council require that information they can request it directly from a claimant's non dependant.

merlin68

You can claim tax credits and child benefit till child is 20. That's why it's important to know the age of said child.
I didn't realize i had to notify the council, but they obviously knew she was working as they wrote to me requesting info. She was 19 at the time.

HappyMJ

merlin68 wrote: »

You can claim tax credits and child benefit till child is 20. That's why it's important to know the age of said child.
I didn't realize i had to notify the council, but they obviously knew she was working as they wrote to me requesting info. She was 19 at the time.

The vast majority of students starting the final year of A levels are 17 on the 1st September and turn 18 during the year finishing A levels either at 18 or 17 if born during August. Very few students go on to do an A-Level equivalent course once they've completed it successfully. There's no point. They tend to go on to university or higher level college courses very few of which entitle them to child benefits.