HMRC tax credit claim delay

Milegna

Hi, I am new to this forum...and really at the end of my tether...I separated from my husband 4 months ago, I am staying in matrimonial home for which-to my utter disbelief-there was a single mortgage. I was told that our joint income would be taken into account, and assumed it meant joint mortgage:( anyway, I am staying with children in the home, ex is renting the flat. When I applied first for tax credits, I truthfully said that we were living in the same property with all bills split (except the mortgage as it was on his name). I was turned down due to "having the same interest in property" and "living the same way as other couples do". I really didn't have anything to prove otherwise, therefore didn't appeal. Since then my ex moved out, I just recently have been able to transfer all payments on my name: the problem is with my new claim HMRC is asking me again for a proof from before the claim (their 1 month backdating) and I am terrified that they will turn me down again. My bills are enormous (childcare, bills, etc). and I had to take payday loans. Been turned down for high street loans, despite never having a problem with repaying anything, probably due to searches and existing debt. The problem is I cannot even add tax credit award to maximise income, as I don't have ones. It's been going on like that for some time. I cannot even apply for my children school meals as they need to see tax credit award. I am in complete trap and cracking up:( sorry for a rant

Icequeen99

You have applied as a single person and HMRC are now asking for proof of your single status before they will pay out on the claim?

Send them details of his address, your bank account, bills in your name etc to prove you are single.

IQ

Cate1976

As Icequeen has said, HMRC need proof that you are single. In your situation, I would send council tax bill showing single person discount (hope the council have awarded this from day after your ex moved out). Proof of TV licence, utility bills, phone bill & anything else they've asked for. If you have any joint bank accounts, you need to get your name removed asap. I don't know how quickly banks can do this. The best thing if it's going to take a few weeks is to open an account in your name only and have everything paid into it. Might be worth you applying for Council Tax Support. If you put your details on https://www.entitledto.co.uk, you'll get a estimate of what you should be able to get. Not sure how much it's help but as a single parent, you can get your child benefit paid weekly.

Milegna

Thanks Icequeen and Cate for your replies...HMRC compliance is asking at the moment for utility bills, mortgage statement, childcare proof from Sep-Dec. I applied in November for tax credits, and for September and partially October-Nov my bank statements will not show mortgage coming from my account as ex was paying still at the time (kindly ...as I was awaiting the original, i.e. first decision). Some confirmation of dd being changed relates to Nov (it took different organisations some time to send me a letter).-And to make things worse, my last (and first Dec' mortgage payment went to somebody else as ex gave me wrong details!). And-of course- haven't heard about council discount due to single occupancy until now!(thanks Cate!). My greatest fear is that HMRC will refuse to accept the claim due to above. I am not sure shall I send him his details at this stage will cover letter, even though they are not asking (yet?) for it? I really won't be able to survive another month on payday loans. As I work full-time, I am not entitled to any community grants, or crisis loans:( it's a horrible financial trap. I don't have any family here as I'm from another country...

k0405

Hi Milegna,

I have recently been in a similar situation and wanted to offer some advice.

Get straight on the phone to your local MP and your local councillor. I was 10 weeks without tax credits as I went from a single to a joint claim then again a single claim very quickly but I suppose it cause confusion for tax credits.

My MP was great and chased for me. They have a direct line for tax credits.

My local councillor was also able to ask the crisis fund place for a review after they rejected me as I was in paid employment. They subsequently gave me £150 of vouchers for food.

My tax credits has now been awarded and it was all backdated as a lump sum.

Don't wait to send off the information they are asking for as you will be able to speak directly to your case worker and you can explain the situation to them directly over the phone.

I must admit that it's been the hardest 10 weeks of my life trying to find money for rent, council tax, childcare and food but you will get through this and hopefully will be ok in the end. If you need a chat, please feel free to PM me xxx

pooh

Have you got your phone set up with Virgin.I have the plan that lets you make 0845 calls as part of the bundle.Saves a fortune as these government departments all seem to have the 0845 number.

BigAunty

Go to the Debt free wanabee board and see the Debt Management advice on the Direct Gov website - you need free expert advice. They will help you come up with a Debt management strategy and advice on how to repair your credit record.

Download the MSE budget planner to get a full grip on your income/expenses. Work through the site to identify how to slash every expense.

Is your ex paying any child support? If not, see the Direct Gov website on child maintenance - there is also an MSE board for this.

alwaysskint96

So what Im gathering from this thread is that someone husband could walk out, not change the bills into a different name * (companies nearly all insist on talking to the bill payer) nor pay them and due to this the ex and kids are left without any help from tax credits??

Cate1976

Milegna, here's what I would do in your situation taking each of the things HMRC have asked for:

Utility Bills
I'm assuming that the letters each has sent are dated but if you read them the date that the account is in your name from could be earlier, hopefully the day you applied for it or the date they received it. For example the utility company could have received the name change on 28th November, but the letter you've been sent confirming the account is in your name dated 4th December. I would use a highlighter pen and highlight the date that the account is in your name from to reduce risk of HMRC using the date the letter was typed. Do you have proof of the date you asked for the account to be put in your name? I would hope that for things like gas/electric, water, phone, TV licence that HMRC would allow for the processing time by each company. If you did any online, then did you receive emails saying they'd received the request? If so send them in as well.

Mortgage Statement
I'd send it in but write on it that your ex paid it until xx/11/2013 but you're now paying it from yy/11/2013. I would hope that HMRC would accept that the mortgage is one thing which can take longer to change arrangements for.

Childcare costs
Hopefully HMRC will accept whatever the provider has given you showing what is due for the period.

Council Tax
Chase it up and say that your tax credits claim is being held up as HMRC need proof of you being single.

Have you applied for Housing Benefit, if not do so asap.

HMRC should only be asking for proof of you being single from the day after your ex moved out.

Milegna

Hi all, thanks for your replies!
Cate, your advice sounds super and I do gather that it's based on your own experience...which in terms of dealing with HMRC looks similar! I was on the phone with them yesterday and, after a short "lost in translation" communication with one of the people from Compliance, I got a useful advice, although it doesn't mean any positive outcome (as I was told). Because they asked me "only" for proof of childcare costs, details of address, etc. I asked them do they want any proof of being single: I explained that my financial situation is as such that I cannot run on payday loans and don't qualify for state benefits, i.e. crisis loans-and even so-it takes everybody at least 4 weeks to process anything. I explained that yes, the house is on my ex-name and with shared ownership apparently on his name too, but I live there because:1) it's marital home despite who officially owns it (I hope they will see that through);2) I live there with children who are my dependants;3)regardless of who the property belongs to, when it's sold and the assets split, both of us would be hit with early repayment charge (mortgage is on fixed rate, taken a year ago) and I cannot afforest to get myself into more debt;4) altogether the mortgage is £400, whilst rented houses in my area are £550+, which is not reasonable at all. The HMRC lady said thay will look into financial links between me and my ex-so at the end of the day I don't know how they will treat my current arrangement...Cate, you are right with the dates, I hope they will be reasonable to see that the date on dd letter is not the same as actual arrangement...I have just finished my application form for rate rebate (I live in N/Ireland) and also really hope they will not give me a hard time with "we need to establish a,b,c,..." Big Aunty: thanks for your advice also: I queried it with one of the companies and was given advice that any debt management/consolidation programme may have an adverse effect on my capacity to remortgage (on my name) or even buy off my ex. It looks like I have to duck in and leave on beans on toast for some time to keep up existing repayments...I suppose I will have to take another job or sth...It's very hard at the moment, so thanks for any advice!

Cate1976

Not had experience of changing from joint to single claim on Tax Credits. Everything I've posted is mostly based on what others have said works. I can't remember if others have gone as far as sending in letters from utility company confirming the change of account holder or whether they've printed the information from the account online. I hope it gets sorted soon. Don't know if they do it in situations like yours but I have read on here that some people have managed to get payments on grounds of hardship with the amount being based on what you're likely to be entitled to once the claim is fully processed.
My husband & I lived in Northern Ireland until September last year, I can't remember what the reduction is if you're single.