Working Tax credit and Rent

sunshine124

Hi Everyone,

My husband and I are just about to move out of my parents home and rent a house as we cannot afford to buy a house at the moment. Anyway we are getting WTC and have received our renewal forms. The point is we are going to rent from a private landlord so how do we put this in the form? I mean won't we need some sort of proof that we are renting?

Another question, if we are renting then will they decrease our WTC or will they increase it, as it is a big expense for us.

Many thanks for your replies.

dmg24

The amount you pay for rent will not affect your tax credits.

If you wish to claim for help towards housing costs you need to claim Local Housing Allowance.

sunshine124

hi thx dmg24, what is local housing allowance? and will it effect my wtc?

dmg24

LHA is the new name for Housing Benefit. It will not affect your WTC, though the WTC will be taken into account when calculating your LHA.

If you go to the website of your local council, there will be a calculator where you can check how much you may be entitled to.

sunshine124

I understand that you need a proof of tenancy, how do I get this, is it an official document?

Batty_3

Once you've piad your deposit (Or in some cases before) you will get a copy of your Tenancy Agreement (along with an inventory of all fixtures and fitting in the house)

This lays out the rent, the length of occupation, if it includes utilities etc and who is reposible for the 'management' of the property.

It can go into fine details, (like not allowing smoking in or on the property or allowing visitors to smoke) Some even go so far as to restrict the type of blinds you can hang at the windows (I kid you not)

This document is signed by you and by a witness then by the landlord or his agent. You have one copy and the letting agency/landlord keep the other.

You simply take a photocopy and send that to the council to claim LHA

Be warned though a lot of landlords don't allow the new LHA as it pays less than the old Housing Benefit used to which was paid direct to the Landlord