Tax credit calculation and budgeting, have I got this right.

spitandpolish

I've separated from my wife and I'll be looking to move out asap whilst still being main carer to our two young children, girl 6, boy 4. I'm going to ask the wife to take out a mortgage for £130,000 on our family home (mortgage free currently). I'll transfer my 1% equity stake to her and look for her to buy a 2 bedroom home (up to £150,000 cash), again in her name which I intend to rent off her.

The numbers...

Wife's income £4,850 per month!
Rental income £493.65

School fees (£1,350)
Mortgage (£630) 10 year fix 3.19%
Child Maintenance (£433.33)
Rental tax liability (£197.46)
Water, Electric, BB (£150)
Council Tax (£82.50)

Net disposable £2,500

My Income (weekly)
Salary £112 (16hr NMW)
Tax Credits £193.91
Child Maintenance £100
Housing Benefit £88.27
Child Benefit £34.40
Council Tax Support £1.83

Total monthly income £2,298.45
Property rental (£493.65)
Car Rental (£252)
Gas, water & electric (£100)
Council Tax (£70)

Net disposable income £1,382.80

Genuine separation, used the www entitled too.

Have I got this right?!

bloolagoon

spitandpolish wrote: »

I've separated from my wife and I'll be looking to move out asap whilst still being main carer to our two young children, girl 6, boy 4. I'm going to ask the wife to take out a mortgage for £130,000 on our family home (mortgage free currently). I'll transfer my 1% equity stake to her and look for her to buy a 2 bedroom home (up to £150,000 cash), again in her name which I intend to rent off her.

The numbers...

Wife's income £4,850 per month!
Rental income £493.65

School fees (£1,350)
Mortgage (£630) 10 year fix 3.19%
Child Maintenance (£433.33)
Rental tax liability (£197.46)
Water, Electric, BB (£150)
Council Tax (£82.50)

Net disposable £2,500

My Income (weekly)
Salary £112 (16hr NMW)
Tax Credits £193.91
Child Maintenance £100
Housing Benefit £88.27
Child Benefit £34.40
Council Tax Support £1.83

Total monthly income £2,298.45
Property rental (£493.65)
Car Rental (£252)
Gas, water & electric (£100)
Council Tax (£70)

Net disposable income £1,382.80

Genuine separation, used the www entitled too.

Have I got this right?!

Not quite but nice try.

nannytone_2

presumably, you will be looking to claim housing benefit?

if so, your idea will not work.
you can't claim housing benefit to pay rent to the mother of your children.

Darksparkle

Tax credits and child benefit look about right.

spitandpolish

nannytone wrote: »

presumably, you will be looking to claim housing benefit?

if so, your idea will not work.
you can't claim housing benefit to pay rent to the mother of your children.

I was under the impression that so long as we never lived together in this house then that was acceptable. Only reason I'd want to do this is for a secure long term tenancy. If this isn't possible then I'll have to rent a house elsewhere.

Darksparkle

spitandpolish wrote: »

I was under the impression that so long as we never lived together in this house then that was acceptable. Only reason I'd want to do this is for a secure long term tenancy. If this isn't possible then I'll have to rent a house elsewhere.

I believe that can be possible when renting from an ex-partner but not where that ex-partner is the parent of your child.

nannytone_2

spitandpolish wrote: »

I was under the impression that so long as we never lived together in this house then that was acceptable. Only reason I'd want to do this is for a secure long term tenancy. If this isn't possible then I'll have to rent a house elsewhere.

as they are HER children too ...

do you really think the state would pay her rent to house her own children?

since you're mortgage free, and she earns well above average wage, why don't you stay in the 'free' house and she can buy elsewhere

spitandpolish

nannytone wrote: »

as they are HER children too ...

do you really think the state would pay her rent to house her own children?

since you're mortgage free, and she earns well above average wage, why don't you stay in the 'free' house and she can buy elsewhere

Life isn't so simple, I'm walking on eggshells and have been the victim of mental domestic abuse for longer than we have had children. My friends warned me and I didn't listen. I want an amicable separation where she doesn't have to lift a finger otherwise I'm looking at going down the messy divorce route.

Darksparkle

Probably best to then look for a normal private let.

nannytone_2

spitandpolish wrote: »

Life isn't so simple, I'm walking on eggshells and have been the victim of mental domestic abuse for longer than we have had children. My friends warned me and I didn't listen. I want an amicable separation where she doesn't have to lift a finger otherwise I'm looking at going down the messy divorce route.

the way to do that ISNT to ask her to buy a house for you to rent though

you need to look at the local housing allowance rate for your council area.

it only covers the lowest third of the rental market, so don't expect anything too luxurious
your income will also reduce the amount you will be able to receive

on her income, she should be paying you quite a large amount of maintenance ( around 15% of her after tax income)
this wont be counted as income for benefits purposes

Caz3121

have you spoken to a solicitor? why do you think your share of the mortgage free house is only 1%. As the main carer for the children you will likely get more than 50% of the marital assets then you will be able to be less reliant on benefits