Low(er) income, single parent, any idea on tax credit top ups?

[dungandbother]

I have a job, pro rata I earn well, £38k per annum (3 day week, 20 hours brings it to around £22k).
But as a single parent, I get child care tax credits.

I'm changing my life. Moving out of London. If I took a term time only job paying pro rata £14.5k but less than 30 hours on average per week across the year...

Would I get tax credit top ups? I won't have child care costs anymore. But I would be on a low wage.

Would the children get free school meals for example?
Council tax reduction?

Or do I have to still pay top whack for everything even tho I'm a lone parent on a low(er) wage??? ( I do appreciate it isn't minimum wage and that I am still fortunate)

Any advice?

[AndNowItsSeven]

Yes you would get child tax credits approx £60 a week per child and also some working tax credits and free prescriptions.
You would not get free school meals.
Help with council tax is likely but depends on your particular council.
You would also be eligible for housing benefit.

[dungandbother]

Thank you!
I'm not convinced about it all you see.

I'm going to rent out my London house and rent a small house in catchment for a better secondary near my parents.
The whole home owner thing is a question I can't seem to fathom in the entitled to site. It is due to a relationship breakdown, there's a thing about 6 months. But then what. We've been separated 3 years.

It's such a mine field!

[PigletWasPoohsFriend]

I'm going to rent out my London house

Surely that would affect the amount you would get

[ninenicknames]

If you own a property, rent that out & live in another property, you are entitled to NOTHING.

This is a fact. As equity in your current owned property is considered an income & capital.

If you stay in your current property then yes you are entitled to tax credits & other benefits.

But renting out a property you own is considered secondary income, regardless of any negative equity.

[dungandbother]

I own half the property remember. And there's this six month thing. Does anyone know anymore about that?

This is why I'm so confused. Low wage regardless of where you live ? Or how you live? The rent will be paying the mortgage on the London house.

I will be selling up. Within a year. The moving and renting is purely to get a school place near my parents. And I can't sell because the ex is an arse.... but that's another story.

[WatchingFromTheWings]

As pp have said, you won't get anything if you own another property.

[WatchingFromTheWings]

The amount of time separated shouldn't make a difference. I claimed TC etc the week after ExH and I split. I was on the sofa in that time, still in the family home.

[dungandbother]

Hmmm actually. The low wage job will be whilst I'm still in my house for a few months. So that's ok.
I will be moving mid next year.

So as soon as I move (rent out and re rent) the benefits stop?

Maybe I need to sell up but then I will be sitting on a wedge of cash. I will admit my plan is to rent for a school place near my parents so I have family support.

Do you think I should see CAB about this? I can't decide to make such a big move if I don't know how I'm going to finance it.

Any other suggestions of where to get cold hard facts?

[WatchingFromTheWings]

Your best off phoning and asking. I wasn't on the deeds/mortgage of the family home. I was renting (Social Housing) with 2 DC. ExH bought out my half which was literally a few quid by the time marital his debts were taken into consideration. I suspect I'd have had my claim stopped or had to pay money back to TC had it been a substantial amount. This was 6 years ago though so not 100% sure if it's all still the same as I don't claim any more.

[WatchingFromTheWings]

Phone Tax Credits themselves. I always found them helpful. You can have up to £16k in savings. Anything more and you can't claim.

[dungandbother]

Thanks watching.

Such a headache all of it. Sometimes I do wonder if I should have given up under the shit of an abusive ex and stopped caring! Mortgage job childcare all so stressful.

[AndNowItsSeven]

Not true watching there are no savings limits on tax credits.
That's because before tax credits were redefined as a benefit by the Tories, most of muddle England claimed tax credits.

[AndNowItsSeven]

Ahh middle.

[AndNowItsSeven]

The rental income will be added to your wage and classed as income.
The value of your property is irrelevant it could be worth £5m and you can still claim TC.
Equally you could have ££££ in savings and claim tax credits. Only interest over £300 is classed as income.

[dungandbother]

I love MN. I genuinely do. Thank you all. Still confused

Will Citizens AB be able to unravel this do you think ?

[dungandbother]

I mean for me! Unravel it into really simple facts??

[PigletWasPoohsFriend]

The rental income will be added to your wage and classed as income.

Which if a London property, could be quite significant

[AndNowItsSeven]

If you have a welfare right centre they will be better than cab. Also be aware with UC you do have 16k savings limit.
However if you are in a UC area it's unlikely you will be eligible to claim as your income is most likely too high - which is a good thing.
The being illegible for UC being the good thing.

[dungandbother]

Yes it will. Around £1400.
On mortgage of £1300 !

There was def mention of a six month clause for relationship breakdown.

I need a year! So if I can tsk the benefit for six months then I absolutely will.

But it's so difficult to navigate to an answer.

[WatchingFromTheWings]

Not true watching there are no savings limits on tax credits.

You're right, I just double checked. Must have been HB with the savings limit....I know one of them wanted all mine and the kids savings details.

For the purposes of TC it's the interest that counts, you're allowed to earn up to £300pa.

[AndNowItsSeven]

You can deduct the interest from your rental income , unfortunately not the mortgage.

[AndNowItsSeven]

Sorry posted too soon. You can deduct the mortgage interest not full payments, also deduct agents fees, maintenance, insurance etc.

[dungandbother]

Thank you seven

[swingofthings]

I'm going to rent out my London house and rent a small house in catchment for a better secondary near my parents.
I would heavily discouraging from doing this. Are you fully aware of what your responsibility as landlord will be? Becoming a new landlord on a very low income is a very very bad idea, especially when you are sharing the rental house (and assuming sharing the income?). Being a landlord can cost a lot more than £100 a month on average. You'll need to pay for repairs, redecorating, new carpets, landlord insurance, and agency fees of you don't manage yourself and that doesn't take into account what the costs can build to when things go wrong.

[dungandbother]

Thank you swing.
I like your (harsh) post. It actually feels like someone cares! Cares enough to point out pitfalls.

It's ok, I have estate agents in the family. My London house will be professionally managed for practically no fee. Tenants will be properly checked.

The income will not be shared with ex. He is a complete selfish tool but a stupid one. He has no access to the house. Nor does he know who the mortgage is even with. I will happily let him take me to court if he wants to tidy this up properly. He won't. If he did it would be a relief.

I'm going to CAB on Wed. If I learn anything relevant to my original Q I will come back and post.