Tax credits question

pinkiepie

Hi everyone, I'm hoping to get some advice/put my mind at rest really. I am a single parent of 2, things didn't work out with the Father of my children though we remain great friends and co parent together without any problems. My situation may seem not the norm but I'll try to give as much detail as possible.
I live in my ex partners house with the children, within the grounds of his garden (he has a 7 acre estate) he lives in an annex, it's completely seperate to my home, he built this for himself to live in as we both wanted to see the kids every day. He works full time and claims no benefits. I work part time and claim working tax and child tax credits. I pay no rent as he wouldn't dream of charging anything (he has no mortgage) I do pay all my own bills except for the electricity, both houses run from the same supply which he pays as we are both using it and he earns more than me. I pay for my own central heating oil, phone, broadband, sky tv, tv license etc etc. My renewal came through the other day when my friend was here and she kind of scared me into thinking I was claiming and not entitled. Now obviously i don't go into my life history when applying for tax credits, I answered the questions truthfully and as far as I'm aware I'm entitled. It's kind of scared me though and now I'm worried I may get into bother. We live completely separately, I date people as does he. We take the kids on separate holidays, we never go together (that would be too weird!! lol) I couldn't manage without the tax credits. Can anyone confirm I'm not doing anything wrong? It never crossed my mind for the past 4 years and just worried I'll get hit with a huge over payment or worse be prosecuted.
thanks in advance x

HappyMJ

Doesn't sound like you're doing anything wrong...don't worry about it. As long as you told the truth on your applications for benefit payments then you have nothing to worry about.

pinkiepie

Thank you Happymj, it just never occurred to me before that there would be an issue. You know what it's like when someone plants a seed, it's all I've thought about since.

Icequeen99

pinkie/pie wrote: »

Hi everyone, I'm hoping to get some advice/put my mind at rest really. I am a single parent of 2, things didn't work out with the Father of my children though we remain great friends and co parent together without any problems. My situation may seem not the norm but I'll try to give as much detail as possible.
I live in my ex partners house with the children, within the grounds of his garden (he has a 7 acre estate) he lives in an annex, it's completely seperate to my home, he built this for himself to live in as we both wanted to see the kids every day. He works full time and claims no benefits. I work part time and claim working tax and child tax credits. I pay no rent as he wouldn't dream of charging anything (he has no mortgage) I do pay all my own bills except for the electricity, both houses run from the same supply which he pays as we are both using it and he earns more than me. I pay for my own central heating oil, phone, broadband, sky tv, tv license etc etc. My renewal came through the other day when my friend was here and she kind of scared me into thinking I was claiming and not entitled. Now obviously i don't go into my life history when applying for tax credits, I answered the questions truthfully and as far as I'm aware I'm entitled. It's kind of scared me though and now I'm worried I may get into bother. We live completely separately, I date people as does he. We take the kids on separate holidays, we never go together (that would be too weird!! lol) I couldn't manage without the tax credits. Can anyone confirm I'm not doing anything wrong? It never crossed my mind for the past 4 years and just worried I'll get hit with a huge over payment or worse be prosecuted.
thanks in advance x

In theory you are not doing anything wrong. In practice, you might have some difficulty persuading HMRC if they were to investigate.

Are the properties separate for council tax?
Do they share different addresses for post?
Does he pay you maintenance for the children?

If you were to ring the helpline they would tell you that it is fine - but as you will see if you google concentrix or HMRC compliance checks, it can be difficult when it is actually investigated by someone to show you are not living together as husband and wife.


IQ

HappyMJ

Icequeen99 wrote: »

In theory you are not doing anything wrong. In practice, you might have some difficulty persuading HMRC if they were to investigate.

Are the properties separate for council tax?
Do they share different addresses for post?
Does he pay you maintenance for the children?

If you were to ring the helpline they would tell you that it is fine - but as you will see if you google concentrix or HMRC compliance checks, it can be difficult when it is actually investigated by someone to show you are not living together as husband and wife.


IQ

I'm not sure any of those questions really matter. Husband and wife can live in the same house under the same roof sharing the same address for post and not have any child maintenance agreement and still both be separated (sleeping in different rooms) and each can claim tax credits as a single claim. They have to be jointly and severally liable for the council tax so they'll even be sharing bills.

pmlindyloo

I think what Icequeen is saying is that if HMRC chose to review the case then it would be a lot of hassle.

It is always (in my opinion) best to consider the kind of things HMRC might be looking at in these circumstances. Basically they are looking at whether the claim is being made fraudulently.

So, consider the situation.

The ex partner owns a 7 acre estate and is allowing the OP to live in the house paying no rent. He lives in an annex in the grounds. They share electricity bills. (Presumably no other financial ties)

So, why is this happening? In 'normal circumstances' the couple would have come to agreements about the arrangements for housing (does the OP have a beneficial interest in the house?)/ arrangements for the children/child support etc etc.

The OP says that they are both dating. What will happen when/if either want to get married/live together with someone new? Will the OP's ex be happy to live in the annex? Will he ask the OP to leave the house?

A fairly simple way for the OP to stop worrying about this is to get a written agreement made (can be legally done through a solicitor) to sort out all these things.

This would have the joint effect of protecting the OP in the future and being able to present such a document to HMRC if the case was ever reviewed.

HMRC have no idea whether the OP's ex. is living in the annex and popping over to the house and giving the OP cash. They have no idea whether these arrangements have been made to claim tax credits fraudulently.

There is no 'you have to be living in the same household' to be classed as a couple for tax credits purposes.

Do yourself a favour OP and get some evidence that your relationship has ended formally. It will protect you and the children now and in the future.

I am not suggesting that you are claiming fraudulently but just want you to understand it from another viewpoint. You may know what you are doing is entirely correct but HMRC do not know you and your circumstances from any other claimant's.

Useful link:

https://www.citizensadvice.org.uk/relationships/relationship-problems/ending-a-relationship-when-you-re-living-together/

Icequeen99

HappyMJ wrote: »

I'm not sure any of those questions really matter. Husband and wife can live in the same house under the same roof sharing the same address for post and not have any child maintenance agreement and still both be separated (sleeping in different rooms) and each can claim tax credits as a single claim. They have to be jointly and severally liable for the council tax so they'll even be sharing bills.

Yes, i do know that.

As I said it is the theory vs the practice. What you say is absolutely right in theory, but as many previous posts here show and several cases I have represented on, evidencing it to HMRC can be difficult. Therefore, they often make a decision that a person's single claim is wrong because they cannot give enough evidence.

IQ

pinkiepie

Thanks for the reply's, we have a verbal agreement for child maintenance, but no formal agreement in regards to the housing. I'm pretty sure if I was to get serious with someone else and want to move in with them that it wouldn't this house we lived in. This was his parents house that he inherited, we have never lived in this house as a couple and I don't feel it would be right to do that.
Like I said I've never even really thought about it before. Maybe it's best to phone them and see what they say. We don't eat together or holiday together or do anything other than co parent together. We don't sleep under the same roof ever.
I know I couldn't manage on just my wages and maintenance, the tax credits for me are essential to make ends meet. It helps towards child care to make it possible for me to work.I'm now scared that they'll say they've been paying me for 4 years and shouldn't have been and want me to pay it all back!! I really would be in big financial trouble then.

Icequeen99

pinkie/pie wrote: »

Thanks for the reply's, we have a verbal agreement for child maintenance, but no formal agreement in regards to the housing. I'm pretty sure if I was to get serious with someone else and want to move in with them that it wouldn't this house we lived in. This was his parents house that he inherited, we have never lived in this house as a couple and I don't feel it would be right to do that.
Like I said I've never even really thought about it before. Maybe it's best to phone them and see what they say. We don't eat together or holiday together or do anything other than co parent together. We don't sleep under the same roof ever.
I know I couldn't manage on just my wages and maintenance, the tax credits for me are essential to make ends meet. It helps towards child care to make it possible for me to work.I'm now scared that they'll say they've been paying me for 4 years and shouldn't have been and want me to pay it all back!! I really would be in big financial trouble then.

As I said above, if you explain it as you have here I can guarantee that the helpline will say it is fine.

BUT, if compliance investigate the claim (likely if there is any historic financial link between you) then where you will struggle is with evidence to support what you have described.

I would suggest that you formalise the child maintenance by drawing up an agreement between you and then following through so you can see the bank payments.

Also make sure there are no other financial links except those that are necessary (e.g joint loans that can't be changed).

IQ