Tax Credits / Step Children should my income count?

chocice22

Hi,

My wife has two kids from previous relationship. When they split she eventually started a part time job and received Tax Credits. She receives a small amount of maintenance each month (just over £100 total).

Then we moved in together and have since married and therefore we filled in the renewal forms together including my salary details. This has obviously resulted in the tax credits being virtually wiped out.

What we are thinking though, is should my salary affect her tax credits? I have no financial or parental responsibility for these children as that is hers & her ex's, so other than sharing the household bills she technically doesn't benefit from my salary towards the children because she wants it to be their parents responsibility. Can we argue this with HMRC?

(Hope that doesn't come across like I'm some mean stepdad as that could not be further from the truth! She just feels like supporting the kids should be down to their parents)

Any advice would be appreciated

cosmic-dust

chocice22 wrote: »

Can we argue this with HMRC?

Good luck with that. Her children are part of your family and as such quiet correctly your income counts.

GlasweJen

Yes your income counts, you are a couple and both of your incomes will be considered for any means tested benefits from here on in.

[Deleted User]

chocice22 wrote: »

Hi,


She just feels like supporting the kids should be down to their parents.

Any advice would be appreciated

Quite correct in the form of her wage and Child Maintenance.

You are a Family now, your Wife came as a package.

Strapped

Bit late to be asking now, AFTER you have married.

lynzpower

I have no financial or parental responsibility for these children as that is hers & her ex's,

Sorry but what a horrendous attitude.

Children are more important than cash, I think thats a lesson you need to learn pronto.

BigAunty

The fact that they are not your biological children is irrelevant. Your wish to exclude yourself from personal and financial responsibility for your step-children will not be taken into account.

There is nothing to argue against as the rules are inflexible - Income based benefits and allowances are premised on couple's providing mutual support and assistance. Therefore other sources of income, such as salaries, are always counted.

The tax credit and benefit system has set up rules to enforce a moral obligation for couple's to support each other, so whatever their personal preferences and attitude towards it, it is inescapable.

Perhaps your wife can find a job or ask her ex for an increase in child support if she wishes to be less dependent on you?

chocice22

I knew my post would rub people up the wrong way! Let me clarify, I have a fantastic relationship with my step children and treat them as if they were mine.

Due to my wife's ex being self employed in a cash-in-hand orientated business he has been able to declare only 1/3 of his earnings which means he does not contribute financially what we think he should.

We are much worse off being married and living together and working for a living than we would be if were living separately and if she wasn't working - she just felt that that financial burden is a little unfair when her ex won't pay more and the system the govt set up to help families is actually making it harder for us.

Therefore she said why should I be more financially responsible for her children than their dad in the eyes of HMRC. Just trying to get the system to work for us rather than against us!

zagfles

chocice22 wrote: »

Hi,

My wife has two kids from previous relationship. When they split she eventually started a part time job and received Tax Credits. She receives a small amount of maintenance each month (just over £100 total).

Then we moved in together and have since married and therefore we filled in the renewal forms together including my salary details. This has obviously resulted in the tax credits being virtually wiped out.

What we are thinking though, is should my salary affect her tax credits? I have no financial or parental responsibility for these children as that is hers & her ex's, so other than sharing the household bills she technically doesn't benefit from my salary towards the children because she wants it to be their parents responsibility. Can we argue this with HMRC?

(Hope that doesn't come across like I'm some mean stepdad as that could not be further from the truth! She just feels like supporting the kids should be down to their parents)

Any advice would be appreciated

No, unfortunately not. The govt want it both ways, biological parents pay and step-parents pay. The tax credits (and benefits) system always assess on joint income for "partners" (ie couples who live together). The fact that you have no rights wrt the children is irrelevant to them.

PS ignore all the judgemental rubbish you get on here, it's par for the course unfortunately. Don't let it put you off posting with other questions, as you get good advice amonst it all.

RAS

Go to the child support sub-forum and they may be able to suggest ways of getting their biological father to cough up more.

doodoot

Am on the fence here...can see your point in that their bio father should stump up his share of financial responsibility, but also find it eyebrow-raising that you feel your wife's children are not YOUR responsibility.

If you think that what you've said is fine, may I suggest you show it to them and see what the reaction is.

As for the CSA, I'd advise telling them that what he's declaring is not matching his lifestyle and then give a nod to HMRC for fraud.

If he's saying one thing to CSA then you can bet he's saying the same to HMRC.