80k equity in propert. Can I get wtc and ctc?

scousedave

hello.
I am after some help on the workings of wtc and ctc,
I am a single dad who is the sole carer of 2 young children .Due to the industry I work in I can't get a babysitter/childminder as i can work up to 15hours per shift I only work two days when my elderly mother takes care of my children.
My property has 80k equity in it but very high mortgage payments. I have the chance of moving into my friends flat with a much reduced rent compared to the mortgage Im struggling to pay.
In order for this I would rent my property out....do wtc and ctc look at the equity or rental income>
Thank you

konark

Equity no, but income, unfortunately for you, yes.

neilvw

Looking at the Government website there appear to be no restrictions on capital for tax credits, just income, so it would appear to be just the rental income that would be taken into account.

https://www.gov.uk/child-tax-credit/eligibility
https://www.gov.uk/working-tax-credit/eligibility

TELLIT01

You may be able to set the mortgage against the rental income, but you'd need to investigate that further.

scousedave

Think I can do this until the introduction of U.C. saw post earlier not being rolled out until 2020.
Is this true???

poppy12345

scousedave wrote: »

Think I can do this until the introduction of U.C. saw post earlier not being rolled out until 2020.
Is this true???

No this isn't true. It's being rolled out already for some, started back in 2013.

kingfisherblue

scousedave wrote: »

Think I can do this until the introduction of U.C. saw post earlier not being rolled out until 2020.
Is this true???

UC has already started for new claimants in St. Helens, and probably other areas too. I don't think the changeover from various benefits to UC for existing claimants has started yet, though.

neilvw

According to the Government, this is where we are with Universal Credit.

UC is live in 558 Jobcentres, and will have reached all 700-odd by April 2016 on current plans. This started with new claims by single people who would otherwise claim JSA, but is being progressively expanded to new claims by couples and families.

That is the "live service". The "digital service", covering all types of households and with full online functionality, rolls out from May 2016 and is currently being trialled in three Jobcentres.

By the middle of 2018 it will no longer be possible to make a claim to any of the legacy benefits (JSA [IB], ESA [IR], IS, WTC, CTC, HB) anywhere in Great Britain.

The managed migration of existing claims of legacy benefits to UC will begin in 2018 and be largely complete by 2019 (sounds ambitious!) with everything being moved over, including ESA and tax credits, by April 2021.

http://data.parliament.uk/writtenevidence/committeeevidence.svc/evidencedocument/public-accounts-committee/universal-credit-recall/written/25999.html

So the OP probably has 3 or 4 years at least.

scousedave

Thank you for all your helpful messages.
Just 1 last question pls...
As I understand it if you have more than 16k in savings or equity then my payments for CTC should stop but have read that there is a transition period when these payments will continue.
I have also read that these payments continue indeffinately or if my circumstances change.
Can you pls tell me if this is is true??
Thank you so much

Darksparkle

scousedave wrote: »

Thank you for all your helpful messages.
Just 1 last question pls...
As I understand it if you have more than 16k in savings or equity then my payments for CTC should stop but have read that there is a transition period when these payments will continue.
I have also read that these payments continue indeffinately or if my circumstances change.
Can you pls tell me if this is is true??
Thank you so much

Savings/equity have no impact on tax credits. There are no plans for that to change.

This will however change when you move to universal credits. There is info on transitional protection here - https://www.turn2us.org.uk/Benefit-guides/Universal-Credit-transitional-protection/What-is-Universal-Credit-transitional-protection

neilvw

The key point is that if a claimant is migrated under the "managed" basis, i.e. with no change of circumstances, the cash amount of legacy benefit they receive, above and beyond their UC entitlement, will be protected. I take this to mean that if they would not qualify at all for UC because of capital, the whole of their tax credits award plus other relevant benefits would be the protected amount.

However if at any point there is a significant change in circumstances, transitional protection does not apply and would stop.

These significant changes are:

- a partner leaves/joins your household
- your earnings drop beneath the level expected of you in your claimant commitment (for three months in a row)
- your Universal Credit award ends
- you or your partner stop work.