This article aims to help in answering the question of whether someone can claim Tax Credits if they live with their parents. To answer this question in as much detail as possible, we will explore the eligibility criteria for Tax Credits and the impact of one’s living conditions on the benefits they claim.

Can I Claim Tax Credits If I Live With My Parents?

Yes, you can claim Tax Credits if you live with your parents in the UK. You will not be able to apply for a fresh claim for Tax Credits since Universal Credit is replacing them along with other legacy benefits. However, if you need to make changes to your previous claim or have your records with the DWP updated regarding your claim, you can do so.

If you have been claiming Tax Credits before starting to live with your parents, you do not have to worry about losing your claim due to this change in your circumstances. Even though your benefit claim will not be affected if you live with your parents, you must still inform the DWP when you start living with them.

To claim Tax Credits, you should be able to meet the basic eligibility criteria. This includes the following elements:

  • the applicant should be at least 16 years of age
  • the applicant must be present and ordinarily resident in the UK
  • the applicant should not be subject to immigration control

If you are married or in a civil partnership you will have to make a joint claim for Tax Credits. This rule applies even if you are separated from your partner. You can only make a single claim if you are not married or in a civil partnership or you have been legally separated from either of them.

If you travel outside the UK, you will only be able to claim your Tax Credits payments for up to 8 weeks; unless the reason for being outside the UK is related to a severe health condition.

If you are living with your parents due to a severe health condition or a disability that restricts your ability to perform daily activities or move around or you need assistance and supervision, you may want to consider claiming disability benefits such as Disability Living Allowance or Personal Independence Payment.

On the other hand, if you are living with your parents to take care of them and one of them claims Attendance Allowance, you can apply for Carer’s Allowance for yourself. This is a welfare benefit that aims to provide support to carers who spend 35 hours or more per week taking care of someone who is unable to perform everyday tasks and needs support or supervision.

How Do I Claim Working Tax Credits If I Live With My Parents?

If you live with your parents and intend to apply for Working Tax Credits, you will not be able to file a fresh claim as Universal Credit has replaced Tax Credits. This means that you will have to apply for Universal Credit instead. For this, you will need to create an online account on the Universal Credit website or sign in to your existing Universal Credit account.

If you have been claiming Working Tax Credits before starting to live with your parents, you can continue with your original claim and simply inform the Department for Work and Pension of the change in your residence.

The amount that you can claim depends on your income and savings as well as whether you are applying as a single individual or a couple. In addition to this, it will be taken into consideration whether an applicant is:

  • working at least 30 hours a week
  • disabled or severely disabled
  • paying for childcare

How Do I Claim Child Tax Credits If I Live With My Parents?

If you are on a low income and are responsible for a child, you can apply for Child Tax Credits to get financial support for your expenses. You can use an online Tax Credits calculator to confirm your eligibility. To apply for the benefit, you can call on the Tax Credits helpline at 0345 300 3900

The amount that you can claim will depend on the following factors:

  • the number of children you have
  • the dates of their birth
  • whether or not you already claim Child Tax Credits

Do I Have To Inform The DWP When I Start To Live With My Parents?

Yes, you have to inform the DWP when you start to live with your parents. A change of residence is a change of circumstances that benefits claimants are required to share with the DWP. even though your benefits claim will not be affected by a change in residence (unless you are claiming Housing Benefit or the housing element of Universal Credit).

Claimants are generally advised to inform the concerned department(s) immediately whenever there is a relevant change in circumstances impacting their Tax Credit (or any other benefit) claim. 

However, they can do so within a month of the change taking place so that their next Tax Credit payment is calculated accordingly. If you do not inform HMRC of a change even after a month has passed, you may be fined £300 as a penalty charge and overpaid Tax Credits will also be revoked. 

To avoid this penalty, it is best to keep your information updated on the portal. Otherwise, you can simply call, write a letter or email the authorities along with supportive evidence of the change. If you have missed the 1-month deadline, an online update or letter may not be the option for you; instead, you should call the Tax Credits helpline on 0345 300 3900 and inform them at the earliest.

Conclusion:

The detailed discussion in the blog post has helped us in coming to the conclusion that one can claim Tax Credits if they live with their parents; as long as they are able to meet the eligibility criteria. This applies to both Working Tax Credit and Child Tax Credit.

References:

Who can claim tax credits?

A guide to Child Tax Credit and Working Tax Credit

Check if you can get child tax credits – Citizens Advice

Check if you can get Working Tax Credits – Citizens Advice

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