Tax Credit - Definition of 'Partner'

falcon21

Hello All,

I've been claiming Tax Credits for about a two years - it was actually my accountant who suggested it. (I have been setting up and in the R&D stage of a business and so my income has been quite low).

I live with my girlfriend, but we each treat our own money completely separately, split all the bills equally etc and so when I asked my accountant if I should tick single or partner (which on the form was defined as 'living with someone as if you are married') he said that the 'as if you were married' meant how you dealt with your financial affairs.

However, I was searching the BBC news website and came across this story - http://news.bbc.co.uk/1/hi/wales/south_east/6333215.stm - which seemed to muddy the waters a bit. I tried looking and for the life of me I can't find an exact definition of 'partner'.

Can anyone help?

shameless-about-money

A "partner" in legal terms means nowadays whether you are married, co-habiting, or in the same-sex relationship.

I disagree with the accountant and his definition of "how you deal with your financial affairs" since a lot of couples are married and still split the bills, etc and keep their money totally separate.

babyboo42

yes i agree,for benefit purposes a partner is someone you share domestic life and chores with eg shopping,washing clothes etc and has nothing to do with financial arrangements. i used to be a visiting officer for the DWP and i believe HMRC use similar guidelines and a good guideline is 'do others see you as a couple?'
sorry you've been given duff info by your accountant. we're back to the grey area of what is morally right and what the law says

shellsuit

A partner is someone you live with who you are in a relationship with.

For tax credit purposes, it makes no difference how you deal with the financial side of things.

You would be classed as living with a partner and not single I'm afraid.

welshcakes

Hi falcon

Are you talking of a personal claim for Credits or a R&D SME Tax Credits claim as these I understand have different criteria for qualifying?

To qualify for R&D TCs, you actually have to have a Ltd company already set up and it must be a company within the R&D sector (ie is "work to resolve scientific or technological uncertainty aimed at achieving an advance in science or technology") ?

The R&D tax credit is not available to individuals or partnerships.

If it is a personal Tax Credit Claim,
Clause 3: Claims
For the purposes of this Part ... An unmarried couple is defined as a man and a woman living together as husband and wife (subsection (4). I presume you don't jointly own your home. If one of you owns, do you have a landlord/tenant agreement. If you both rent, are you joint tenants or tenant in common?

bobblebot

Can you clarify:
I'm getting married August but we cannot live together because of studies, we will actually be living in separate houses in diff part of country boohoo for 1-2 years. I have 4 kids that will live with me can I continue to claim tax credits without his income affecting as I'll be paying all my bills??

TheWaltons_3

bobblebot wrote: »

Can you clarify:
I'm getting married August but we cannot live together because of studies, we will actually be living in separate houses in diff part of country boohoo for 1-2 years. I have 4 kids that will live with me can I continue to claim tax credits without his income affecting as I'll be paying all my bills??

Yes I would if I were you.

tigtag02

bobblebot wrote: »

Can you clarify:
I'm getting married August but we cannot live together because of studies, we will actually be living in separate houses in diff part of country boohoo for 1-2 years. I have 4 kids that will live with me can I continue to claim tax credits without his income affecting as I'll be paying all my bills??

Will he be finacially contributing to the household where you are the 4 kiddo's are?

Elle00

Taken from DirectGov

"If you share responsibility for a child or young person
If you're a couple living together then you have to make a joint claim - whether you're married or civil partners or not."

In my opinion, there are a few things to consider here.

If it is your home and she is paying rent (by cheque or DD that you have proof of) you can claim she is a lodger that you just happen to get romantic with sometimes. She is therefore not your partner and you are single.

If it is her home and you pay rent as above it is the same principal.

If you jointly pay the rent or mortgage, even it is from seperate accounts, I fail to see how any court would believe you that you are not partners if you are romantically linked (and they can find these things out) with no-one else living in the house (ie sharers or lodgers). If both names are on the deeds or rent book I think you need to claim as a couple asap to avoid future legal repercussions.