PhD stipend and child tax credits

Rosiepops123

Hi, just wondering if anyone had any advice...

I'm a lone parent and work 20 hours a week, paying nursery for a toddler with my working tax credits and child tax credits.

If I move in with boyfriend who is a funded PhD student ie he has a stipend from the government but this does not count as employment will I still be eligible for my childcare costs? Or will they assume he should look after the tot whilst I'm at work?

Can't seem to find any info online, so thanks in advance for any help!

Darksparkle

Hours you work

Couples usually have to work at least 16 hours per week each. Only one of you has to work these hours if the other:

- is in hospital or prison
- gets certain benefits, eg because of an illness, disability or they’re a carer

https://www.gov.uk/help-with-childcare-costs/tax-credits

First link on google if you search childcare tax credits. If he is not employed/self employed for at least 16hrs per week and is no incapacitated then you cannot claim help with childcare.

Rosiepops123

Thank you for your reply.

The helpline seem to think it counts as income like an employee rather than education as a student but this doesn't sound right to me...!

[Deleted User]

Rosiepops123 wrote: »

Thank you for your reply.

The helpline seem to think it counts as income like an employee rather than education as a student but this doesn't sound right to me...!

Does he have an employment contract? Some PhD students do.

Darksparkle

Rosiepops123 wrote: »

Thank you for your reply.

The helpline seem to think it counts as income like an employee rather than education as a student but this doesn't sound right to me...!

http://www.hmrc.gov.uk/manuals/tctmanual/TCTM02431.htm

Rosiepops123

Thank you - no, no employment contract and they have specifically told him they don't count as his employer and the money isn't taxable income, which is why the helpline confused me.

If he is considered a student will this mean tax credits expect him to look after the baby and not pay any child care costs?

Is there any way we can find out entitlement without having to actually apply - the student thing makes it really confusing and it's not part of the online calculator as an option.

Thanks for the replies, has been really helpful!

Darksparkle

Rosiepops123 wrote: »

Thank you - no, no employment contract and they have specifically told him they don't count as his employer and the money isn't taxable income, which is why the helpline confused me.

If he is considered a student will this mean tax credits expect him to look after the baby and not pay any child care costs?

Is there any way we can find out entitlement without having to actually apply - the student thing makes it really confusing and it's not part of the online calculator as an option.

Thanks for the replies, has been really helpful!

Sorry I already answered that for you. He's a student, he isn't counted as being employed or self employed and as such you cannot claim childcare help through tax credits unless he does get 16hrs employment or self employment or is considered incapacitated.

You can pay childcare but they won't assist you with it. Tax credits weren't designed to assist students as there is other forms of student finance.

What age is your child? They should be getting 15hrs free if 3-4yrs (you mention the child is a toddler). Is there no way you can do your 20hrs per week around your partners education?

Rosiepops123

Sorry, thanks!

I'm reluctant to drop her nursery hours as I'm meant to be going full time in July. Guess I will just have to look at the money again and see if it is viable.
Thanks for your help

xylophone

The OP would be living with a partner who is a full time student.

His stipend doesn't count as income.

https://www.nidirect.gov.uk/articles/benefits-higher-education-students-low-incomes

"Full-time students

If you have a partner who is not a student and they’re eligible for any income-related benefits, your partner can claim on behalf of you both."




The above is for NI - is there any equivalent in England?

pmlindyloo

What the OP needs confirming is whether the stipend is counted as income for tax credits (think no)
and
whether the stipend is counted as income for housing benefit. (think yes)

So Darksparkle et al and HBO et al the OP needs your input for this.

Without knowing this the OP will not be able to work out her (their) finances.

If the stipend isn't counted as income for tax credits then the partner would need to find 16 hrs a week employment to get child care costs included.

However, if the stipend isn't included for working tax credits and child tax credits then the partner would need to find 4 hrs work a week (to take the couple hrs up to the minimum (24) to claim both working tax credits and child tax credits.

Have I got that right?

Rosiepops123

Thanks for this - I have heard this about housing benefit too - but it's just a problem where I don't want to move in together and then find myself unable to meet outgoings. Nursery is the big concern cost wise, hence the worry about child tax credits.

I earn less that 11K if that helps.