Partner working away - tax credits

FBaby

I can totally see your dilemma. Normally, the concern is about couple making a single claim because in almost all circumstances, they will receive more tax credits this way. There are however exceptions, and there has been at least one instance here when a couple claim as a couple but they were accused of doing so as should have been single....

So yes, you are right to make sure you are doing the right thing and not assuming that it is your choice to continue to make a joint claim if the rules are telling you that you should claim as a single.

In the end, I would do what they tell you to do.... and what they tell you is officially in writing.

Housing_Benefit_Officer

For Housing Benefit and Council Tax Support we would still treat you as a couple even if he was away working for years and still treat his wages as household income. If Tax Credits increase your Tax Credits we would treat that as additional income and reduce your HB/CTS. Seems an odd rule by HMRC.

mummyroysof3

Seems daft to especially with how long it can take to process claims. You could end a couple claim to make a single and by time it's processed he could be back. Seems to me it could make for a big mess come renewal time. My advice would be to keep a strict record somewhere of when he is in and out of the home and keep all paperwork they send you.

princessdon

The way I read it (and yes I'm unsure is this).

For unmarried claimants once overseas for 8 weeks its a single claim as TC, stop if they are overseas for 12 weeks so Dave can't be on the claim as you need to notify them.

But if Dave and Marie are married I don't think Marie can claim as TC treat married as joint claimants unless a divorce, court order or likely to be permanent separation.

So Dave is unclear if married what to do as the 2 regulations conflict, if Dave is a partner to Marie, its a single claim.

However, you don't HAVE to claim anything. If the overseas worker is on a good wage and sends it over, morally its wrong IMO. I have many friends whose OH is in Dubai or quatta and earn over £100,000 tax free who send most salary home, its not right morally they can claim.

pmlindyloo

Although tax credits do have this rule about being divorced/legally separated/separation that is likely to be permanent they also take into account where each person lives.

So (not sure if this relates to OP), someone could be in the position that OH has to work away for long periods (set at 8 weeks) and while they are living there have all the normal living expenses - rent/bills/food etc. This would seem to imply that they are running two households. Tax credits seem to be taking this into account. Even if the person living away was sending money to the family this could be seen as child maintenance and would not be taken into account. In these circumstances it would seem sensible for the one left to be putting in a single claim. If they are eligible for tax credits they are unlikely to be earning a fortune.

Like some benefits (DLA/PIP, AA, Winter Fuel allowance) you could be a millionaire and still eligible. There are many anomalies in the benefit system.

Of course the OP doesn't have to claim and in these circumstances the palaver of keep altering the claim seems ridiculous but if they are entitled to tax credits as a joint claim previously, then not claiming would leave them financially worse off.

I wonder how Universal Credit will deal with situations like this?

princessdon

pmlindyloo wrote: »

Although tax credits do have this rule about being divorced/legally separated/separation that is likely to be permanent they also take into account where each person lives.

So (not sure if this relates to OP), someone could be in the position that OH has to work away for long periods (set at 8 weeks) and while they are living there have all the normal living expenses - rent/bills/food etc. This would seem to imply that they are running two households. Tax credits seem to be taking this into account. Even if the person living away was sending money to the family this could be seen as child maintenance and would not be taken into account. In these circumstances it would seem sensible for the one left to be putting in a single claim. If they are eligible for tax credits they are unlikely to be earning a fortune.

Like some benefits (DLA/PIP, AA, Winter Fuel allowance) you could be a millionaire and still eligible. There are many anomalies in the benefit system.

Of course the OP doesn't have to claim and in these circumstances the palaver of keep altering the claim seems ridiculous but if they are entitled to tax credits as a joint claim previously, then not claiming would leave them financially worse off.

I wonder how Universal Credit will deal with situations like this?

They don't take into account where you live if married, the guidance states even if living separate or not moved in together yet, its a couple claim.

But then as I said which reg trumps?

You can't claim TC if overseas for a long time (over 12 weeks), or the married so must be joint reg?

I think situations like this would be very difficult under UC as the agencies work so different.

http://www.hmrc.gov.uk/manuals/ccmmanual/CCM15035.htm

Icequeen99

princessdon wrote: »

They don't take into account where you live if married, the guidance states even if living separate or not moved in together yet, its a couple claim.

But then as I said which reg trumps?

You can't claim TC if overseas for a long time (over 12 weeks), or the married so must be joint reg?

I think situations like this would be very difficult under UC as the agencies work so different.

http://www.hmrc.gov.uk/manuals/ccmmanual/CCM15035.htm

HMRC are right in this case. The primary requirement in Section 3 Tax credit act is that you must be 'in the UK'. This means present and ordinarily resident. There are some exceptions but doesn't sound like they apply here. You must also have a right to reside here for CTC.

You are treated as present for the first 8 weeks after you leave. After that you are no longer present so no longer 'in the UK' so you cannot claim tax credits. The person left behind is in the UK so makes the single claim.

In other words the being in the uk requirement comes before the couple part. Section 3 TCA is where you need to look.

IQ

Housing_Benefit_Officer

I wonder how this HMRC rule and Housing Benefit rules on oversees working claimants will be changed to when Universal Credit comes out?

rogerblack

Housing_Benefit_Officer wrote: »

I wonder how this HMRC rule and Housing Benefit rules on oversees working claimants will be changed to when Universal Credit comes out?

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