WTC claim under review - help!?

majikdragoon

Hallo :-)

So I have been in receipt of Working Tax Credits for about 4 years. I am disabled and receive DLA, work 16hrs a week and am a full time student at university.

I have lived in a house owned by a friend and her sister. They have a joint mortgage. I pay rent every 4 months when I get my maintenance grant from student finance. I pay 4 months worth at a time.

This weekend I received a letter from the Tax Credits office in Preston asking me to call them as my claim is under some sort of review. Apparently they want to know why I made a single claim when I live with this woman.

I never made a joint claim because we are not in a relationship and haven't been living as a couple. I rent the attic conversion in their house and buy my own food. I don't pay any utilities or have any kind of joint bank account so I'm not sure how this has come about.

I am on the electoral roll as I'd read that this helps towards getting credit cards and such, but that's all. I'm a little concerned because the language in the letter is fairly abrupt and talks about seeking legal advice if I don't want to share information with them. I'm not sure what to do as my parents live in Canada and I don't have a carer - I've been living unassisted for 3 years or so.

I'm not really sure what to expect when I call them. Has anybody else experienced anything like this or have any advice to offer before I make the call?

Thanks in advance!

Icequeen99

Does your friend and her Sister live in the house? Or just your friend?

Do you have a written agreement with them regarding the rent? Can you show bank statements showing this four monthly payment going from you to them? Can they provide a written statement confirming the arrangements?

Do you have anything with them in joint names credit wise? That is what HMRC are currently checking and looking for financial connections. Order a copy of your Experian credit report and see if you are financially connected in any way, and if you are explain to HMRC why.

Do you have evidence of how you pay the bills that you can show? Payments from your bank etc....?

You could contact CAB, LITRG or TaxAid for some initial advice.

IQ

majikdragoon

There only two of us living in the house. One of the sisters moved to Scotland for work 2 years ago or so. They bought the house together about 6 years ago and still have a joint mortgage.

I don't pay any utilities or bills for the house. The arrangement has me pay £400 per month flat, in a £1600 lump sum every 4 months. We mostly buy our own food and obviously I can provide bank statements to show that kind of stuff.

I don't have a written rental agreement with them though. We had talked about it at one point but nothing was done and since I haven't had any problems with HMRC until now I didn't really worry too much about stuff like that.

My only direct debit is to Orange for my phone and I only have one credit card and that's only in my name.

The letter states that my claim is under review because they have found that I live with somebody else. If all they want is for me to show that I rent a room in somebody else's house then I guess that's no problem but I don't know what kind of evidence I could provide aside from my bank statements, written confirmation from the two of them confirming our arrangement and potentially the woman I live with's bank statements!? Though I'm not sure how best to approach that last point.

I dunno. The Tax Credit people have always been really good with me but the letter is a tad daunting. It talks about overpayments and penalties and stuff that I wouldn't be able to afford without dropping out of uni and going fulltime at work again. I guess with all these cuts to benefits and stuff I'm just concerned that mine are on the chopping block. Will Amy of this affect my DLA?

Icequeen99

HMRC are doing a large scale exercise, you will see lots of posts on here of people getting the same letters. They use data from a credit reference search to find other people with financial connections to single claimants.

That is why I suggested that you get a copy of your Experian report to see what it is that is flagging up as a joint connection between the two of you. The Electoral role?

Would the person you share with be willing to show some proof from HMRC that she is declaring the rent? Presumably this is being done under the rent a room scheme, but the amount you pay is over that limit I believe. Seehttp://www.hmrc.gov.uk/manuals/pimmanual/pim4030.htm

I would suggest that you get some advice at the earliest possible stage, rather than leave it to HMRC to make their decision and then seek advice.

IQ

majikdragoon

Hmmm, this is where it may become complicated then. I don't think they do declare the rent. There's no formal rental agreement in place. It was just convenient for me to move in here, go part time at work and go back to university to get my degree. I pay the rent into their joint account through my online banking.

I am on the electoral role yes; would this connect us financially? The only reason I got them to put me on was so I would be abe to get a credit card.

I will seek some advice as you suggest before I contact HMRC, but in the event that they make the decision that I have been overpaid or should have made a joint claim - I know I can appeal, but ae there any other types of benefits I may be eligible for? I'm 29 and in my final year at university. The last thing I want is to have to quit my course when I'm so close to finishing!

xylophone

http://www.hmrc.gov.uk/taxcredits/start/claiming/get-started/joint-single-claim.htm

should have made a joint claim

But how could you have done this when your only connection with the owner is that you are a lodger in the house she jointly owns with her sister?

majikdragoon

I couldn't. That's why I don't understand the letter.

My claim existed before I moved in and then I contacted HMRC to change my address, and everything was fine for the past 2 1/2 - 3yrs. Then over the summer I got a letter asking whether my circumstances had changed and they haven't so I said no.

Then at the weekend I received this new letter saying they believe another adult is living here and why haven't I made a joint claim.

Obviously if this is a large scale thing then it's not like I have been singled out and I will just explain to them.