Official definition of "living together"

Cardelia

I was wondering if anyone knows what the official HMRC definition is of "living together" for a non-married couple. I'll give you the situation as best I can:

A friend's parents got divorced in 2001. They had kids who all stayed with the mother, mainly because the father worked away for long periods of time. The mother never got a full-time job; she has certainly never earned over £10k per year in her life - her main role was looking after the kids. The father was a high earner so they didn't claim any income-based benefits.

The couple had been effectively separated for a little while before the divorce went through and in that time, the mother met her current partner. He owned his own business and was (still is) well-paid, enough to put him well into the 40% tax bracket.

Almost as soon as the couple initially separated (around 2000, before the divorce went through), the new partner moved into the family home. This wasn't reflected in the paper trail, which still showed him paying council tax, bills etc. at a different property. However, he spent most of his time (5 or 6 nights a week) at the family home, and only 1 or 2 nights a week at his other property. After the divorce was officially sanctioned, this arrangement slowly declined to the point where the new partner no longer spent any time at his other property, but he didn't notify HMRC etc. until 2007 that he had moved into the family home.

Here's where I need some help.

The mother claimed income-based benefits (WTC, CTC etc.) from the time she was divorced until the time the new partner "officially" moved in i.e. 2001-2007. She would have had to declare that she was living on her own because the new partner's income was and is large enough to take them over the upper threshold of receiving income-based benefits. This stopped in 2007 when the new partner "officially" moved in and they no longer claim income-based benefits.

My question is, for that time period, was she eligible to claim income-based benefits?

I've had no luck finding out exactly what constitutes "living together" as far as HMRC are concerned in order to prove this one way or the other. Can anyone help?

cassieB57

What qualifies as a couple for a tax credit claim?


You and your partner need to make a joint claim if you're:

• married
• in a civil partnership
• living together like you're married or in a civil partnership

For couples who have separated

You need to make a single claim if you've:

• split up from your partner and you're separated under a court order
• decided to split up and this is likely to be permanent

If you're already claiming tax credits when you separate from your partner please let the Tax Credit Office know straightaway so they can stop your joint claim and, if you still qualify, help you make a single claim over the phone.

For couples who are temporarily apart

You should still make a joint claim if:

• your partner is away from home for a while, for example they may be working away or in hospital
• you and your partner have separated for a short time but you're going to get back together

If you're not sure if you should make a single or joint claim you can call the Tax Credit Helpline on 0845 300 3900.

If your partner is outside the UK

If your partner lives outside the UK you should normally make a single claim. But you will need to make a joint claim if either of the following applies:

• your partner is only abroad for less than eight weeks, for example if they're just on holiday or away on a short business trip - if they go abroad for eight weeks or more you should let the Tax Credit Office know by calling the Tax Credit Helpline, they will help you make a single claim over the phone
• your partner lives or works in a country in the European Economic Area (EEA) or Switzerland

There is no definition in law, but have a look at this link, which should tell you what they will look for when deciding whether you live together or not:
http://www.hmrc.gov.uk/manuals/inmanual/in1423.htm

Cardelia

cassieB57 wrote: »

There is no definition in law, but have a look at this link, which should tell you what they will look for when deciding whether you live together or not:
http://www.hmrc.gov.uk/manuals/inmanual/in1423.htm

Fantastic, that link is very, very useful. Thanks very much.