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Tax credits whilst in parents house

(16 Posts)
binxthecat1 Tue 09-Jun-15 16:30:51

Hi can you live with your parents and still get your child tax credit. Are they classed as a 'partner' and asked to contribute to your claim. I paid a fixed amount to them initially and then less formal agreement of paying for all of the food which they felt covered the additional amount of outgoings. Is it best to make it more formal?

passmethewineplease Tue 09-Jun-15 16:33:11

With regards to your first point, no they are not classed as your partner. I had to move on with my parents again after a split. No questions were asked about them.

When you say make more formal how were you thinking?

binxthecat1 Tue 09-Jun-15 16:53:06

I wondered if they would need to get some sort of contract or anything. I am hoping to have enough money to move out in the next few months anyway. I just don't want to be accused of fraud for not doing a joint claim. I see so many posts on here about that sort of thing that I am having a panic!

lrb978 Tue 09-Jun-15 17:18:41

Am in this situation and have been for about 2 years now. You are a separate household to your parents, just living under the same roof. You just claim as normal, no mention of your parents, and no they definitely are not classed as a partner. In my case I pay a set sum a month rent, as I would if I was lodging elsewhere or renting a property, except that it is totally informal as in I do not have a contract or anything in writing. Tax credits have no interest in who you live with as long as it isnt a partner.

binxthecat1 Tue 09-Jun-15 19:44:39

Thank you! That's a big help and a big relief to know that. I wasn't sure and there aren't any really specific guidelines on this!

PingPongBat Tue 09-Jun-15 20:45:42

There are loads of people in the same situation as you - claiming child benefit and child tax credits for their children, whilst living with their parents - as pps have said, this is irrelevant to tax credits.

The problems come when HMRC find what they think is evidence that the person claiming tax credits as a single person is actually living with another adult in a relationship - i.e. that they have a partner. HMRC can look at credit reference files & if they find a joint account, but the person is claiming as a single person... then alarm bells ring at HMRC and they start investigations. The person claiming then has to prove that they are in fact single - I've seen cases where people have joint accounts with ex-partners who moved out years ago, but they haven't got round to removing the ex-partner from the account.

Babyroobs Wed 10-Jun-15 10:54:11

I don't really uderstand why tax credits are paid at the same rate if you live with parents as surely outgoings such as utilities/ council tax / food etc are all going to be significantly less if shared between 3 adults?

binxthecat1 Wed 10-Jun-15 14:08:29

I've had a look on line and there is some info on what criteria they have to use for being considered a partner. I think financial links are one of the 5 criteria so if they go just on that basis then you are not considered a partner? I am never very sure about the whole system to be honest. I find it confusing in many different ways.

morethanpotatoprints Wed 10-Jun-15 14:12:45


Tax credits only look at your earned income. What you get in terms of favours or what you actually pay to live is no concern to them.
Outgoings are immaterial for this purpose.

PingPongBat Wed 10-Jun-15 17:08:44

babyroobs think of it this way - your money for food & bills for you /your partner is either made up of your wages or ESA/JSA/Income Support.

Then, if you're on a low income, & you have housing costs, like rent, you can apply for additional money to help you with these (Housing Benefit). Same applies if you are liable to pay Council Tax - i.e. you can apply for Council Tax Support.

Then, if you also have children, and depending on your income, you may get Child Tax Credit & Child Benefit to help with the costs of raising them.

Then if you have disabilities, you might get money like DLA or PIP to help with the additional costs of living with a disability (although these are not dependent on how much you earn, but how your disability affects you).

binxthecat1 Wed 10-Jun-15 19:48:30

That is so clear now thank you! - what a great way of explaining it! Why can't HMRC make it that clear too?

Atlanta0597 Fri 26-Jan-18 09:12:59

Hi, I was wondering if any knew i am going to be renting a house from my grandad but he stays with us once a week due to work he isn’t there but will still be registered on council tax and things, will that effect my working tax credits and child tax credits?

Babyroobs Fri 26-Jan-18 19:56:29

You still get the same tax credits as someone with a mortgage to pay assuming everything else is the same ( earnings, number of kids etc ).

Babyroobs Fri 26-Jan-18 19:58:45

Atlanta - be careful if you are a lone parent and have another adult male registered at your address. HMRC will most likely flag it up as a partner and suspect you of fraud ! I would be upfront with them and explain he is your granddad before they get the wrong end of the stick.

Oldsu Sat 27-Jan-18 02:50:09

Atlanta0597 if you are claiming HB for the rent you are going to have to have a formal tenancy agreement with your granddad and pay a commercial rent and you will have to declare that you are renting from a close relative when you claim

KanielOutis Sat 27-Jan-18 07:45:57

It is right and fair that it is assessed on income and not outgoings. If you are frugal with money, and find ways to cut back on outgoings, why should you be penalised for that? I live in a flat when I could buy a house. My family could do with the space. Should I be penalised for choosing cheaper accommodation too? What other outgoings would you assess and where does it end?

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