Am I 'on benefits'?

**RedTiger** · 01-06-2012, 02:02pm

I do consider myself to be 'on benefits' to an extent - I get about the same per year in tax credits as I earn, although it works out slightly more in my hand as TC's aren't taxed. I also get (a v. small amount of) council tax benefit, which tbh is what I think makes me of myself as being 'on benefits'. Have to say it doesn't bother me too much, probably because I *am* working and intend to go back to full time work in a few years once the kids are older.

**scatterbrain** · 01-06-2012, 02:42pm

I think the term 'on benefits' usually relates to people who are not in paid employment and benefits are their only form of income. Technically not correct I guess, but that's the way it's used.

**Dr Spouse** · 01-06-2012, 02:45pm

Originally Posted by Madwife

Dr Spouse, you have to wait until you actually start paying the fees and circumstances have actually changed. Very annoying as I would be nice to have the money ready when you need to pay rather than in arrears.

I'm guessing this is another "depends who you speak to" as the person I eventually got through to said that even if we hadn't started paying yet, we could apply now (originally based on last year's income, then changing to this year's income) with all of this tax year's childcare in the equation.

Doesn't sound like we'll get anything (the hours seem to be OK, but averaging out the childcare is going to make that payment low) but there's no harm in trying.

**Fiz** · 01-06-2012, 03:38pm

Originally Posted by scatterbrain

I think the term 'on benefits' usually relates to people who are not in paid employment and benefits are their only form of income. Technically not correct I guess, but that's the way it's used.

Yes, I'd say that this is what most people think of. Me too. I'm not sure what would be a more accurate term, wageless? I have heard the term workless households used.

We get child benefit atm but that's it. No credits or anything else. I do know people who get benefits (housing allowance) on top of their wage but I hadn't thought of them as being 'on benefits'. I don't know if they get more benefits than their wage (as some on here have mentioned) and I would imagine that's pretty stressful to deal with - especially when they keep rumbling on about changes to the benefit system. If that is a large part of your income and you have no control over it, that would cause me stress!

**Jeany** · 01-06-2012, 06:29pm

Originally Posted by Dr Spouse

OK, I was a bit confused about this, as I thought you got tax back that you had paid on either benefits or earned income, and that you could only get it if you paid out some childcare costs.

They are related to income but they are also related to having children and, for a lot of people, to paying for childcare - so they aren't just an income related benefit.

Complete and utter hijack here by the way - can we apply for our working tax credits before we've started paying the nursery fees, if we know how much they are going to be for this tax year?

Tax credits are paid to childless people on low incomes too. They are based on income. You can have 4 children and be entitled to nothing or no children and get over 2000 per year depending on income.

You will only get childcare tax credits if you both work unless one of you is disabled, students do not qualify for childcare tax credits.

**Jeany** · 01-06-2012, 06:40pm

Originally Posted by myzzterri

Apparently (& I can't remember where I got this info) the poverty threshold for a family of 4 is £19000 - this equates to £4740 per person btw... however, the max earnings allowed before you can't claim housing benefit is around £15000

Plus the tax credits are negligible at the poverty threshold level...

Put it this way - a family of 6 on not much more than the poverty threshold is screwed financially!!

hohum - I'll stop hijacking now!

(me me me, that's all I ever talk about

)

There isn't a cut off for housing benefit it depends entirely on individual circumstance.
A couple with 2 children earning 15000, paying 580 per month rent would get about 80 per week housing benefit as well as tax credits of around 150 per week. Tax credits on 19000 for a family of 4 would still be over 100 per week so quite a bit.

**Dr Spouse** · 01-06-2012, 06:58pm

Originally Posted by Jeany

You will only get childcare tax credits if you both work unless one of you is disabled, students do not qualify for childcare tax credits.

The man on the phone didn't seem to think this, I told him Mr S is a full time student and I'm currently on a full time contract, and he said we could apply.

**RealGoneKid** · 01-06-2012, 07:07pm

I'd check out the grant position first Dr S. when DH was a student we could get childcare grant or claim through tax credits. The grant payment was more generous but you couldn't get it if you had claimed the childcare element of tax credit.

**Jeany** · 01-06-2012, 07:09pm

Originally Posted by Dr Spouse

The man on the phone didn't seem to think this, I told him Mr S is a full time student and I'm currently on a full time contract, and he said we could apply.

You can apply for child tax credits but you will not get childcare because you have to be eligible for working tax credit to get childcare. To be eligible for working tax credit you both have to be working for at least 16 hours. If last years income was less than 26000 you will get child tax credit but not the childcare element.

**kelly** · 01-06-2012, 07:09pm

I'm a full time student and DH works full time, we get tax credits but we are not eligible for the childcare element as both parents need to be working 16 hours per week in order to claim it.