Separated or not?! Overpayment and investigation worries.

Sarahjawd

I am hoping you may be able to give me some advice as I am really worried.

Here is a quick overview of my case...

My husband and I claimed working and child tax credits throughout our marriage. I haven't been working for the past few years as I am a full-time uni student, and he is self-employed, but with an income of £0. Infact, his tax return for last year was minus £29,000!

We have had many troubles in our marriage the past few years, mainly due to stress from him working from home. We agreed that he would rent a separate office/flat for this reason and to give us some space so we could work out our marriage. It seems to be working and neither of us wish to split up. Although his time is now split between the two places.

The problem is that now I am being investigated by tax credits as to why I have been claiming working tax credits as a couple when he doesn't live here. But, I thought I only had to inform them if we had split up...which we haven't. If we had, he would be claiming housing benefit and council tax benefit as this is far more than the working tax element of tax credits! His bank statements still come here, the mortgage is in his name, etc. I could understand if I was claiming that he doesn't live here and he does...but we have in no way made any money from this arrangement. It simply wouldn't add up!

I am being told my renewal is 'being looked at'. And it has been 2 months already. I feel sick that I am in huge trouble, but I honestly thought I would be in more trouble for making a single claim if we were not split up.

Do you have any advice for me??

pmlindyloo

An unusual one - it's often the other way round - claiming you're single when you're living as man and wife.

So this is a joint claim for tax credits?

Are you claiming anything in your name only? Council tax (single person's discount/)

Did you put your student income on the tax credit's claim? (although I believe a lot of it is ignored)

Is he paying Council Tax as a single person in his flat?

This is what the website says about claiming as a couple.

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

Perhaps it's because he actually has his own place and has lived there permanently for a while.

Can't suggest much I'm afraid other than wait until they make a decision. Presumably you wouldn't be entitled to working tax credit in your own right but your OH would be.

Mmmm perhaps someone else will have some ideas.

FBaby

How many hours does he claim to work? I believe as couple with children, the minimum would be 24 (assuming you are not working), but if he was on his own, he would need to work at least 30 hours to be entitled to working tax credits. Therefore if he claims for working 25 hours, but they believe that he is single, then he wouldn't be entitled to any working tax credits at all. I believe this information is true for self-employment too, but others more knowledgeable can confirm.

Icequeen99

Sarahjawd wrote: »

I am hoping you may be able to give me some advice as I am really worried.

Here is a quick overview of my case...

My husband and I claimed working and child tax credits throughout our marriage. I haven't been working for the past few years as I am a full-time uni student, and he is self-employed, but with an income of £0. Infact, his tax return for last year was minus £29,000!

We have had many troubles in our marriage the past few years, mainly due to stress from him working from home. We agreed that he would rent a separate office/flat for this reason and to give us some space so we could work out our marriage. It seems to be working and neither of us wish to split up. Although his time is now split between the two places.

The problem is that now I am being investigated by tax credits as to why I have been claiming working tax credits as a couple when he doesn't live here. But, I thought I only had to inform them if we had split up...which we haven't. If we had, he would be claiming housing benefit and council tax benefit as this is far more than the working tax element of tax credits! His bank statements still come here, the mortgage is in his name, etc. I could understand if I was claiming that he doesn't live here and he does...but we have in no way made any money from this arrangement. It simply wouldn't add up!

I am being told my renewal is 'being looked at'. And it has been 2 months already. I feel sick that I am in huge trouble, but I honestly thought I would be in more trouble for making a single claim if we were not split up.

Do you have any advice for me??

You have nothing to worry about as far as I can see.

The rules for married couples are different to non-married couples. As a married couple you are treated automatically as a couple unless you a separated under a court order or separated in circumstances likely to be permanent.

As your separation is temporary, then you are right to claim as a couple. And I can guarantee that if you had tried to claim as a single person, you would be posting here in 12 months time saying HMRC had investigated you and decided you should have been claiming as a couple! To do that would be an incorrect claim. See HMRC website manual for confirmation http://www.hmrc.gov.uk/manuals/ccmmanual/CCM15035.htm

IQ

belowtheline2013

Are you sure they are investigating you living separately? They are more likely to be investigating the number of hours your other half claims to work when his declared income is zero. They are getting much tougher on this.