Tax credits and splitting up

JuneBow

My sister is married and it looks as though the marriage will break down in the next couple of weeks.
She only gets about 545 in tax credits because of her husbands income.
He is moving out into rented accommodation soon and her household income will only consist of her child benefit and she her own invalidity benefit (she is disabled)
I believe her tax credits will increase, as I think maintenance payments are disregarded (hubby will pay for school fees and mortgage.)
Daughter is 12 and son age 19 goes to university in september.
First question is "Is that right"
Second question is, "What happens if they get back together? I am hoping that the split is not permenant"

SuziQ

I'm no expert someone will be along to answer you.
I'm not sure about the maintenance payments-I was asked about them but as I wasn't recieving any Idon't know what effect it would have. She should get more Tax credits,and I believe there is a higher element for someone who is disababled if they recieve certain other benefits. She may also be able to get Council tax benefit but will in any case get 25% reduction as soon as she advises the council he's left.
Child benefit should have ended for the almost 19 year old and CTB will not be payable for him anyway as it ends on the day of his last exam a he is older thn the usual students heading to Uni (if I am wrong on this someone please correct me-this is what I have been told as my 17 year old is off to Uni Sept and gets it until Aug 31st due to her age.

If they get back togther,all they have to do is advise all parties-ie Council,Child tax credits that they are getting back togther-they will then readjust the benefits payable,there is no problem with this-after all the family reforming is in everyoe's best interests.
Might it not be better to try to stop the split-ie with counselling,Relate ect?

[Deleted User]

Firstly, maintenance payments from an ex-partner are not included as income for Tax Credit purposes.

She should notify TCO asap after the seperation and they will set up a new single claim straight away for her over the phone.

If they get back together she should again notify TCO asap so that they can stop paying her as a single person and send her a claim pack to apply again with her partner.

Finally, she cannot claim for her 19 year old at university as this is advanced education so can only claim for the 12 year old.

hth

BARGAINHUNTER!

As soon as her OH leaves her she will need to ring tax credits and they will set up a new claim for just her as a single parent with one child (19 year old will not qualify). She will also automatically lose CB for 19 year old due to his age and going onto further education. Tax credits don't ask about maintenance payments. Also, CSA will only base OH maintenance payments on youngest child. Also get her to phone Council as soon as she is by herself in the house as her council tax bill will be reduced by 25% best thing would be for her to go onto CSA website to check what maintenance would be payable, and also go onto entitled to website to find out about benefit entitlements.

System

Child maintenance for 1 child would be 15% of her husbands NET income if it went through the CSA so that's a starting point.
Spousal maintenance should be negotitated through their solicitors.

JuneBow

Thanks to all who have posted here.
BIL has now left. My sister is in a bit of a state and I am trying to help her get sorted, but she is really upset so I am having to tread carefully.
I have told her to tell the tax credits office and council tax (thanks SuzieQ)
but she keeps saying she will but doesn't.
My question now is, what will happen if she delays telling the council or the tax credits office.
Will they back date the awards?
Thanks to everyone again.

lighton

She has to tell them.They will shut down the claim as couple and st up new one.If you are with her while she goes through the security check and then get her to ask if they can speak to you , maybe you can give details i did this for a friend.Make sure you have all the details available to hand

Prudent

Pam17 wrote: »

Child maintenance for 1 child would be 15% of her husbands NET income if it went through the CSA so that's a starting point.
Spousal maintenance should be negotitated through their solicitors.

Spousal maintenance can be rare now. The 15% does not include school fees - there is info about this somewhere on the csa website.

SuziQ

She must tell tham asap as they will backdate 3 months depending on the circumstances,but she could lose money. Is she claiming anything like DLA? I really feel for her-I was relieved when my husband left but clearly she is in a totally different mind frame to me.
Tell her she will be ok-the benefit system is a safety net and he is paying maintenance which helps-although if she claims things like Income support it will have to go through the CSA as she is only allowed to keep a small amount of it.All I can advise is that taking control and informing everyone makes you feel you have a little bit of control again and is worth it if only for that!