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Apprenticeship and losing tax credits?

edited 30 November -1 at 1:00AM in Benefits & Tax Credits
4 replies 994 views
BurnitlolBurnitlol Forumite
1 posts
edited 30 November -1 at 1:00AM in Benefits & Tax Credits
Hi all,

I’m a 16 year old, about to start an apprenticeship at minimum wage. I’ve been looking at a few things from a few years back saying my mum will lose her tax credit if I do a paid apprenticeship. Is this true?

Thanks in advance.

Replies

  • poppy12345poppy12345 Forumite
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    Burnitlol wrote: »
    Hi all,

    I’m a 16 year old, about to start an apprenticeship at minimum wage. I’ve been looking at a few things from a few years back saying my mum will lose her tax credit if I do a paid apprenticeship. Is this true?

    Thanks in advance.
    Your mum will lose all the benefits she claims for you and all changes need to be reported.
  • SystemSystem
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    yes that is correct she will lose them,sorry
  • sammyjammysammyjammy Forumite
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    Don't let that put you off, work out with your mum how much board you should give her, the child benefits would stop even if you went onto further education in a couple of years so best to deal with it now.
    "You've been reading SOS when it's just your clock reading 5:05 "
  • There is a rule that says you cannot get child tax credit for a young person who is receiving education or training as part of their job. That’s because you don’t count as a “qualifying young person” (QYP) for child tax credit purposes in that case, and you must be either a child or a QYP for tax credit to be payable. An apprentice is an example of someone who is getting training as part of their job. This rule applies throughout the UK.

    There are different rules around the UK to be aware of, though, about whether your type of training stops CTC.

    In Scotland, parents of some young people doing "approved training", working and being paid are still able to qualify.

    In England, Employability Fund activity which is not provided under a contract of employment does not prevent someone claiming child tax credit for you.

    In Wales, if you are doing a Traineeship or “Foundation Apprenticeship”, CTC can remain in payment if any training provided to you is not be provided under a contract of employment.

    SO it's worth checking to see whether the work you are proposing to do is actually an apprenticeship or perhaps approved training/Employability Fund activity etc. The people providing the work and training should be able to give you that information - perhaps with input from your local CAB.

    If you have health problems or a disability, you may be able to claim a benefit in your own right, when your mum's CTC stops.
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