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    • Titus_Gibonnicus
    • By Titus_Gibonnicus 7th Jul 17, 3:30 PM
    • 9Posts
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    Titus_Gibonnicus
    Child tax credits, tax credits and main carer
    • #1
    • 7th Jul 17, 3:30 PM
    Child tax credits, tax credits and main carer 7th Jul 17 at 3:30 PM
    Hi, slightly odd situation that means advice provided by HMRC wasn't terribly useful.

    I'm currently separating from my partner, we have 2 children (5 year old and 17 month old), own our home and are not claiming any benefits other than child benefits. We are planning to sell the home, split the equity 50/50 and purchase two new homes fairly close by, with the intention that the children spend alternate weeks with each of us. It's all very amicable thus far. One issue is that their mother earns too much to be elligible for either child tax credits or tax credits, but on my wage of approx £20,000, and going from the online calculator, i would be able to claim both if i am classed as the main carer. And i would need to in order to support us all and finance a home for us in this area. Both of us agree that having this main carer designation could, potentially but improbably because that would be a dreadful thing to do, enable the main carer upping sticks and moving out of the area.

    So, the main queries - what counts as main carer, does 50/50 on time spent in each parent's home matter, or would it have to be an equal or greater than 49/51 split?
    is it binding in any way other than only i could submit the claim, and the money portioned out as we agree on childcare costs?
    Do CTC and CT count as income, in terms of applying for a mortgage?
Page 1
    • Titus_Gibonnicus
    • By Titus_Gibonnicus 7th Jul 17, 3:42 PM
    • 9 Posts
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    Titus_Gibonnicus
    • #2
    • 7th Jul 17, 3:42 PM
    • #2
    • 7th Jul 17, 3:42 PM
    I should add that the plan is to both contribute towards nursery and after school club, although their mother will contribute more in proportion to her higher earnings. Currently looking at a joint account purely for this. We both work 37 hours per week as well.
    I've looked at various advice threads or FAQs but the thing of dependent or main carer is really where i'm getting stuck.
    • Darksparkle
    • By Darksparkle 7th Jul 17, 4:12 PM
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    Darksparkle
    • #3
    • 7th Jul 17, 4:12 PM
    • #3
    • 7th Jul 17, 4:12 PM
    If you put in a claim for CTC and the other parent doesn't then there's unlikely to be any issues with the claim.

    You can read their guidance here - https://www.gov.uk/hmrc-internal-manuals/tax-credits-technical-manual/tctm02201

    You'll only be able to claim childcare help through tax credits for the amount you actually pay, not the amount your ex will pay.

    No idea about mortgages, I'd ask the mortgage company/your mortgage adviser.
    Last edited by Darksparkle; 07-07-2017 at 4:14 PM.
    • Titus_Gibonnicus
    • By Titus_Gibonnicus 8th Jul 17, 10:22 AM
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    Titus_Gibonnicus
    • #4
    • 8th Jul 17, 10:22 AM
    • #4
    • 8th Jul 17, 10:22 AM
    Thanks Darksparkle, will plough through that. At the minute a joint account is being used for all expenses and tbe mortgage, and contribution towards things is about 1/3 - 2/5. I'm maxed out on work's childcare voucher scheme at 240 per month as well, so i guess proof of the childcare outgoings may be a bit sticky beyond that level.
    • Darksparkle
    • By Darksparkle 8th Jul 17, 1:37 PM
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    Darksparkle
    • #5
    • 8th Jul 17, 1:37 PM
    • #5
    • 8th Jul 17, 1:37 PM
    I would suggest getting your own account. Continuing to have a joint account suggests you still have financial ties and may prompt tax credits to investigate whether you are truly separated.
    • Titus_Gibonnicus
    • By Titus_Gibonnicus 9th Jul 17, 5:31 PM
    • 9 Posts
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    Titus_Gibonnicus
    • #6
    • 9th Jul 17, 5:31 PM
    • #6
    • 9th Jul 17, 5:31 PM
    We both have our own accounts, just pay into the joint for mortgage, council tax, childcare costs, utilities and housekeeping. We have two kids and are still in the same house, so there are ties still there, but it is not as a couple.
    • Sambella
    • By Sambella 9th Jul 17, 7:15 PM
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    Sambella
    • #7
    • 9th Jul 17, 7:15 PM
    • #7
    • 9th Jul 17, 7:15 PM
    The main carer is usually the one who gets child benefit, this opens up entitlement to other benefits such as tax credits etc so do things correctly you would need to claim child benefit as well by transferring it into your name if is not in your name already.

    When tax credits transfer to universal credit child benefits, tax credits etc are all bunched into one monthly payment.
    • nannytone
    • By nannytone 9th Jul 17, 7:38 PM
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    nannytone
    • #8
    • 9th Jul 17, 7:38 PM
    • #8
    • 9th Jul 17, 7:38 PM
    child benefit isn't part of universal credit.
    • Darksparkle
    • By Darksparkle 9th Jul 17, 9:52 PM
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    Darksparkle
    • #9
    • 9th Jul 17, 9:52 PM
    • #9
    • 9th Jul 17, 9:52 PM
    The main carer is usually the one who gets child benefit, this opens up entitlement to other benefits such as tax credits etc so do things correctly you would need to claim child benefit as well by transferring it into your name if is not in your name already.

    When tax credits transfer to universal credit child benefits, tax credits etc are all bunched into one monthly payment.
    Originally posted by Sambella
    Receding child benefit isn't a requirement for CTC. They only ask for the CHB number to try and trace the child.

    https://www.gov.uk/hmrc-internal-manuals/tax-credits-technical-manual/tctm02205

    "When deciding main responsibility for a child or qualifying young person, the fact that someone receives Child Benefit for that child or qualifying young person must not be considered"
    • Titus_Gibonnicus
    • By Titus_Gibonnicus 9th Jul 17, 11:31 PM
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    Titus_Gibonnicus
    Thanks for the clarification Nannytone and Darksparkle. The child benefit is paid into the joint account at the moment.
    • Titus_Gibonnicus
    • By Titus_Gibonnicus 11th Jul 17, 10:18 AM
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    Titus_Gibonnicus
    Final question - submitting a claim for this while we house share, prior to the sale, would be a waste of time wouldn't it?
    • Darksparkle
    • By Darksparkle 11th Jul 17, 10:25 AM
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    Darksparkle
    It is technically possible to claim but you need to considernon paper what evidence do you have to show that you have actually separated if still living together and still sharing finances.
    • Titus_Gibonnicus
    • By Titus_Gibonnicus 11th Jul 17, 3:10 PM
    • 9 Posts
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    Titus_Gibonnicus
    Ok, something to consider as to how it can be evidenced, if it can or how things need adjusting. There are direct debits and such that will need to changed anyway. Having said that, a joint account for nursery and afterschool fees makes sense on some levels, but not if it prevents me getting the entitled benefits. Many thanks Darksparkle, you've been a great help.
    • FBaby
    • By FBaby 11th Jul 17, 3:26 PM
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    FBaby
    We are planning to sell the home
    When and why not right now? Surely that should be the first step?
    • Titus_Gibonnicus
    • By Titus_Gibonnicus 11th Jul 17, 11:45 PM
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    Titus_Gibonnicus
    Why surely?
    • FBaby
    • By FBaby 12th Jul 17, 6:10 AM
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    FBaby
    Because your claims as single parents still living under the same roof is much less likely to draw attention if the house is for sale. Don't you want to move on as soon as possible?
    • Titus_Gibonnicus
    • By Titus_Gibonnicus 12th Jul 17, 12:04 PM
    • 9 Posts
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    Titus_Gibonnicus
    We both want to ensure that moving on is done properly, into properties that are as good as they can be for the kids. To do that benefits and income have to be sorted and in place to ensure that we, or at least i, have the maximum income available to get the highest value mortgage to do this. I'm fine with attention being drawn to the claim, it is entirely genuine, and all changes in circumstances would be passed onto the DWP.
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