Working tax credits/child tax credits

Dear All,

I am need of some advice.  I have two children aged 11 and 9. I have been seeing someone for over a year now and they have suggested we buy a house and move in together.  I would love to move forward but fear i cant afford this option.  The situation is this:  I have two children, work 16 hours per week and get my child tax credits and working tax credits plus a little help for my rent.  IF, big IF, i were to move in it would  mean getting a mortage etc between us.  This in itself is do-able. My partner only works 25 hours a week and is self employed, ave about £7,000 per annum.  I earm £5,000 per annum. (just my wages).  However, here is where i am stumped:  Their mother died last year leaving £90,000 to them, which is what we would use for the deposit then get a mortage for the rest.  But i am informed by someone that we would as a couple, even though we are on a VERY SMALL INCOME between us, not get ANY CHILD TAX CREDITS OR WORKING TAX CREDITS?  Apparently its classed as income for the last tax year??  This to me seems ludicrous and we cannot survive with two children on only £12,000 per year income.  CAn someone PLEASE ADVISE ME, I DONT KNOW WHAT TO DO FOR THE BEST.

Thank you for listening

SEL

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