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longtomsilver

Money For Nothing And The Kids For Free.

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With a small inheritance (father) and sizeable bonus (wife) we cleared the mortgage last month and have money saved for a deposit on a second house (£40k).

Hypothetically speaking, if I were to live with my kids as main carer (I am) in a second property not only would I still be able to claim child benefit I'd get a whole raft of tax credits for working my 18 hour a week bar job (minimum wage).

entitled to suggest

£10,083.30 in Tax Credits

£1,788.80 in Child Benefit

£166.90 in Council Tax Support

Including my earnings that's £18,000 per annum just for working half a job pulling pints.

what's the catch?

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No catch, there are millions of 'single parents' in the UK milking the system. A good friend of mine who works for HMRC as a tax collector does this scam with his other half who has a council house.

He rents a bedsit and gets his post send there, while really living at her address. She has a part time shop assistant job and claims full benefits.

The funny thing is in the house that the tiny, tiny bedsit he rents (£57/wk) is in there are loads of others pulling the same scam to.

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With a small inheritance (father) and sizeable bonus (wife) we cleared the mortgage last month and have money saved for a deposit on a second house (£40k).

what's the catch?

HPC on both your houses.

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HPC on both your houses.

Then I'd welcome it with both arms. The biggest drain on our economy is the extortionate cost of putting a roof over our heads. We could do with a clear out of all the boomers rattling around in their big homes to make way for young families. My wife would benefit as she works in the home and garden 'retail' sector so it's a case of swings and roundabouts for us.

Property #1 is worth £180k and would serve it's purpose just as well if it was a £1.

Same for property #2 it's a means to an end.

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Then I'd welcome it with both arms. The biggest drain on our economy is the extortionate cost of putting a roof over our heads. We could do with a clear out of all the boomers rattling around in their big homes to make way for young families. My wife would benefit as she works in the home and garden 'retail' sector so it's a case of swings and roundabouts for us.

Property #1 is worth £180k and would serve it's purpose just as well if it was a £1.

Same for property #2 it's a means to an end.

I was just pointing out a possible catch (hpc on both houses) assuming property 2 would be more expensive. You recognise the issues yet floating possibility of buying 2nd house anyway?

It's annoying to contemplate that what you hypothetically outline (married, living apart, benefits etc) is even possible/legal - I find it hard to believe it could be, but I do not know.

It sounds like you're in a very good financial position at this moment in time (mortgage free) - I guess the good-school thing might be part of your thinking. You can always take a moment to recognise and enjoy how solid things are for you now... that's all I'm suggesting.. seems to me too few people do that and are currently overreaching.

Congatulations Mr. Miyagi.

We bought from our landlord for the same reasons; young family, settled in, good schools and to get away from the letting agent who treated us like dirt.

Three years on the wheels haven't dropped off and we have been able to spruce the place up.

Home sweet home.

Our circumstances have changed a little from over a few weeks ago when we were planning on buying our second home near a good comprehensive school for our children. The mortgage company declined us for reasons unknown. We still have a lovely, modest home in an idyllic setting and the mortgage will be cleared with the deposit (£100k) and so will the remaining finance on my car. So outgoings are going to be minimum going forwards.

We'll put £15k in each of our ISAs this financial year and put £1,250 a month each into our ISAs for the foreseeable future. Which in five years when the first of our children start secondary eduction could be ~£200,000.

Question is... would it be worth putting our children into private school from 11+? (they are in an 'outstanding' village primary right now so in no hurry to change this.

I'm looking at the Girl's Day School Trust group of schools and spending ~£2,000 a month for the two of them.

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I was just pointing out a possible catch (hpc on both houses) assuming property 2 would be more expensive. You recognise the issues yet floating possibility of buying 2nd house anyway?

It's annoying to contemplate that what you hypothetically outline (married, living apart, benefits etc) is even possible/legal - I find it hard to believe it could be, but I do not know.

It sounds like you're in a very good financial position at this moment in time (mortgage free) - I guess the good-school thing might be part of your thinking. You can always take a moment to recognise and enjoy how solid things are for you now... that's all I'm suggesting.. seems to me too few people do that and are currently overreaching.

Thanks Venger; I'm really just thinking out aloud and have no desire to milk (Maggie thatcher you have a lot to answer for) the tax credits merry-go-round.

I'd rather take a haircut on two houses where I can always rent out one than to sink everything into one great big dick swinging 'executive' shit box that we all aspire too apparently. I'd feel embarrassed to live in a house bigger than our needs and point blanket refuse to do so.

*the house I'm looking at (as yet to be built) is £215k and would cost us £1,000 per month on a 10 year fix (capital repayment) against school fees of £2,000.

Edited by longtomsilver

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With a small inheritance (father) and sizeable bonus (wife) we cleared the mortgage last month and have money saved for a deposit on a second house (£40k).

Hypothetically speaking, if I were to live with my kids as main carer (I am) in a second property not only would I still be able to claim child benefit I'd get a whole raft of tax credits for working my 18 hour a week bar job (minimum wage).

entitled to suggest

£10,083.30 in Tax Credits

£1,788.80 in Child Benefit

£166.90 in Council Tax Support

Including my earnings that's £18,000 per annum just for working half a job pulling pints.

what's the catch?

The catch is that tax credits stop and you've nothing to show for the last 10 years other than working 16h on the tills at Tesco (insert own part-time, low skilled job here), leaving you working the rest of your life for NMW jobs.

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The catch is that tax credits stop and you've nothing to show for the last 10 years other than working 16h on the tills at Tesco (insert own part-time, low skilled job here), leaving you working the rest of your life for NMW jobs.

For the majority maybe, not for us.

I have a 10 year plan to accumulate enough money for financial independence and yes that does include my part time bar job and perhaps the occasional van driving **I love the fact that #1 it's a job I enjoy and is easy #2 it frees up my days to do things I like such as paragliding. By my own financial calculations we are projected to have £635,000 in equity (including the two houses). Surely that's having something to show for it.

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I ask again, why won't they go after your wife to contribute? What is your planning here? Ltd Co setup?

It's not actually happening in the sense that we are claiming or planning to claim tax credits we aren't. I'm just saying it's perfect legal if we can afford to do so and live apart or at least run two separate households and not pay each others bills or stock up the others fridge then technicality we are free to remain in whichever house we choose. This is hard to believe but TRUE; without doing any research I'm going to wager some banks would be willing to lend (as in mortgage) not on my salary of £6k but the £18k and if this is so further Stoke the raging inferno that is HPI... I'll put money on it.

Edit: I did just check and they do... Halifax first of many for example.

Edited by longtomsilver

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No catch, there are millions of 'single parents' in the UK milking the system. A good friend of mine who works for HMRC as a tax collector does this scam with his other half who has a council house.

He rents a bedsit and gets his post send there, while really living at her address. She has a part time shop assistant job and claims full benefits.

The funny thing is in the house that the tiny, tiny bedsit he rents (£57/wk) is in there are loads of others pulling the same scam to.

Is that technically illegal surely?

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Just a minute. Who's been looking after your young children during the day whilst you've been off working two full time jobs??

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Just a minute. Who's been looking after your young children during the day whilst you've been off working two full time jobs??

The smokin' hot Romanian au pair he'll have stashed away at the second house away from his wife's gaze.

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Just a minute. Who's been looking after your young children during the day whilst you've been off working two full time jobs??

I'm only working 18 hours at the w/end Friday, Saturday night from 6pm to 3am and latter 4pm to 3am. Fits in (with some adjustment around the wife's 9-5.

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The smokin' hot Romanian au pair he'll have stashed away at the second house away from his wife's gaze.

I like your style of thinking but is there such a thing as a ^^^ besides I can't afford one. Wishful thinking :D

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I like your style of thinking but is there such a thing as a ^^^ besides I can't afford one. Wishful thinking :D

I met a few the last time I was in Dublin. "au pairs" though.

As you are married though, would not questions be asked about this and your joint income? Would she not be expected to contribute and this count as income and hence be means tested.

I have often joked with my wife we should "divorce". But life is too short and children too sensitive.

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I'm only working 18 hours at the w/end Friday, Saturday night from 6pm to 3am and latter 4pm to 3am. Fits in (with some adjustment around the wife's 9-5.

Must be a little hard after full time child care all week. All power to you.

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Must be a little hard after full time child care all week. All power to you.

Thank you.

A change is as good as a rest and my day job is getting easier, temporary respite maybe.

:)

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