2 Adults(not partners)/1 House - can we claim HB independently?

[TiredLeena]

Currently I live alone in a rented 2 bed house since son left home, cannot earn enough to pay rent. Get tax credits, but no HB at the moment. Temp contract ends soon so application for HB will be going in shortly, then I will be registering as self-employed doing odd jobs to earn a crust.

 

I have a friend who is also registered self employed who is homeless and would like to move in with me, which would save a lot on bills etc.

 

Would we both be able to claim HB and tax credits independently?

[taraquin]

This sounds very much like a manipulation of the tax credit system.

 

Being self employed and claiming tax credits means that the you have to work a min of 30 hours a week. You will have to show that the business is viable and able to support you.

I do hope that this isn't one of those 'part time/full time' self employment scams.

 

Be warned HMRC are very 'hot' on this happening, and will seek information about your business at a later date. Fail to convince them that it is a viable full time business then you will have things to worry about!

[TiredLeena]

No way is it manipulation of anything! There are no jobs here and it will be a case of working hard in various ways to try and earn some money: cleaning, selling cosmetics, small amount of word-processing. Only about 30 or so hours a week and probably all on small income. The only way to survive is to apply and receive tax credits, but that won't pay the rent

 

Housing benefit for a single person in a 2 bed house isn't enough which is why I asked my friend to consider moving here, but I don't understand if we can both claim HB?

 

Um, helpful advice (not jumping to inappropriate conclusions) would be appreciated!

 

Please help, my current job contract will be ending soon and I don't know how I will manage. I live alone and am scared and I don't know how to cope.

[taraquin]

No way is it manipulation of anything! There are no jobs here and it will be a case of working hard in various ways to try and earn some money: cleaning, selling cosmetics, small amount of word-processing. Only about 30 or so hours a week and probably all on small income. The only way to survive is to apply and receive tax credits, but that won't pay the rent

 

Housing benefit for a single person in a 2 bed house isn't enough which is why I asked my friend to consider moving here, but I don't understand if we can both claim HB?

 

Um, helpful advice (not jumping to inappropriate conclusions) would be appreciated!

 

Please help, my current job contract will be ending soon and I don't know how I will manage. I live alone and am scared and I don't know how to cope.

 

I only mentioned it as this is one of the things that HMRC are closely looking at at the moment. You will have to convince them, not me, that the business you are running is a bonefide operation, and not some 'pin money' ventures just to enable you to claim Tax Credits.

 

Too many have had their collar felt by HMRC recently when trying to argue that Ebay selling, Avon parties are full time operations.

 

As for your property, why are you not looking now to down size to something that HB will cover or almost cover. A single person over 35 (new rules coming in) is only entitled to the 1 room rate. Why do you need 2 bedrooms now?

[TiredLeena]

Earning income to live on is rather different to earning pin money. Would you say that to a man, or do you assume as I am female that I only earn pin money? "Pin money" was something earned by kept women to buy pins with. Like a man I also have rent, services and food to pay for, so what I earn is not pin money and I would be surprised if the HMRC would think like you (heaven help us if they do).

 

I am not asking advice on where I live, as it is I am considering moving home, but single places are harder to find here unfortunately and almost the same rent as a 2 bed home. One's choices are also limited when not receiving regular payment. What I am trying to do is to mitigate the expenses/distress and take in an additional person as a co-tenant and I am asking for information on that particular issue.

 

My specific question is whether two non-related, non-partner adults over 50 can live in the same home and claim housing benefit?

 

Am I in the wrong forum/site for this sort of help? If so, can the moderators please advise?

[Mrs E Blackadder]

Why not give you local council a call and ask them where you stand. My local housing office has always been very helpful when I have called, and I am sure yours will be more than happy to let you know what you are entitled to.

[ErikaPNP]

You won't be able to both claim HB unless your friend has a lease with the landlord/landlady we well as you - as she will not be a person liable to pay rent if she has no agreement with the landlord/landlady. If it is only you on the lease and you claim HB, your benefit will be reduced owing to having a non-dependent deduction for the other adult living there.

[TiredLeena]

Thank you Mrs EB and Erika, that is most helpful.

[taraquin]

Am I not right in saying that any 'rent' paid to the poster would be considered as income and would affect any means tested benefit that they might be receiving?

[Nystagmite]

Huh? There's no way the OP could claim for themself, their friend claim it too and it goes to the OP. I don't think that's what the OP means either.

[RaeUK]

I can't speak about tax credits and the suchlike as I've never had them. However, on the subject of can 2 adults live under one roof each claiming HB. I would have thought the answer was yes. Depending on the circumstances. One person rents and then - landlord permitting - takes in a lodger. Assuming both people are financially eligible for HB then rent to the tennant goes direct to the landlord and rent for the lodger goes to the tennant as their landlord. Obviously, rent from the lodger is declared...

[bakewell11]

I live in a 4 bed house with my 2 children my co tenant lives in same house. We have a joint tenancy agreement and both claim hb separately. I claim 75% of total rent co tenant claims 25%.

[ErikaPNP]

Yes both can claim HB - providing there is a liability to pay rent. Perhaps my last posting was unclear. The liability must be enforceable in law. Without a joint tenancy agreement, a or a seperate tenancy agreement which is enforcable, HB will not be paid to both parties. The lady must have a liability as well as the OP. If the OP allows the lady to live in the household without a lease agreement with the landlord/landlady, housing benefit will not be awarded for the lady - but it may be awarded to the OP with a non dependent deduction applied to the claim. If the OP sublets, any income from that sublet will be taken into account for both HB and tax credit purposes. If the lady has a tenancy agreement with the landlord, both of them can claim HB for each of their respective leases.

[id6052]

if your friend just moves into your house, she will not be able to claim hb, although you would be able to claim hb based upon the cost of a 2 bedroom property

 

if your landlord grants a joint tenancy to you and your friend, then you would both be able to claim hb independently based upon the cost of a room in a shared house

 

if you were to take in the friend as a lodger (you would normally need landlord's permission to do this), then your friend would claim hb on one bedroom rate and pay the rent to you, this would then be taking into account in calculating any hb you would be entitled to - the amount of income taken into account can vary depending upon whether any meals are provided

Edited September 29, 2011 by id6052

[ErikaPNP]

Thank you id6052 - much more clearly explained than what I typed.

[TiredLeena]

Thanks so much everyone, this is all making wonderful sense now. Yes, I would prefer her to be a co-tenant rather than a sub-tenant, if I can get my landlord to agree to it.