Working tax credits and a husband on a visa

Cferg

Hi
Firstly hope everyone is as well as can be in these strange times! 
Secondly, please don't judge me for this post. I have worked since I was 16 and now struggling to afford to do anything apart from pay my bills, so looking to get any help I can. I do not live an excessive lifestyle although I seem to be overspending every month! 

Anyway, I am part of a married couple. My husband is on a 5 year settlement visa. He arrived Nov 2018, will be extending/renewing by Aug 2021, then applying for IRL (indefinite leave to remain) by Nov 2023. We have been lucky that he has been working since Jan 2019 (full time, paying Tax and NI of course).
Anyway, I work full time too and our son (18 months) is in nursery 4 days a week at a cost of £915 per month(!!).
I applied as a couple for WTC (working tax credits) and have been advised I have to apply as a sole application because my husband is not entitled to claim anything. This is fine, but I'm worried it looks as though I am being fraudulent when we come to apply for his visa renewal?!  

I have also been advised I have to add myself and my husbands wages (pre tax) into my application and my WTC will be assessed from that. This is also fine, but won't the amount we receive at the end of the month be different as we BOTH pay tax and NI rather than 1 person? (I'm not a tax expert, so I may be wrong)

I just wanted someone who knew about WTC and the system to guide me a little as I find it all confusing. My whole life I thought WTC was just for single mums! 
Thanks in advance for any help you can give!

calcotti

You refer to WTC but if this is a recent application are you actually talking about Universal Credit? If you are referring to WTC can you provide more information about when you claimed and how the claim has been treated to date. How long have you been married?

Cferg

Sorry, I think it is now referred to as UC as it's a new claim. 

calcotti

Cferg said:

Sorry, I think it is now referred to as UC as it's a new claim. 

Different set of rules for Tax Credits and UC.

They are correct. Your husband currently has NRPF. You must claim as a single person but need to declare that is with you. Your maximum benefit entitlement will be calculated as if you are single but the income he receives will be taken into account. I would expect this to be based on the net figure.

When you husband obtains IRL I think the NRPF restriction will be lifted and your maximum amount will then be calculated as a couple.

UC is for anyone on a low income.

calcotti

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/955780/adme2.pdf#page5

E2022 Where one member of a couple meets all the basic UC conditions but the other member is a person subject to immigration control (psic) the member who meets the conditions can make a claim as a single person

Note: Although the standard allowance is that of a single person the amount of UC awarded to this type of claimant will still have regard to any appropriate income and capital received and possessed by the disregarded member of the couple.

If he were permitted to claim and the claim calculated with the couple allowance he would be receiving benefits which would be a breach of his immigration conditions. 

This way way you can claim benefit and he complies with the NRPF restriction. UC works well in this regard.

tomtom256

That is interesting calcotti, as normally the none eligble partner would become an ineligble partner on the claim, effectively making it a single claim, so that RTI data etc feeds through as normal.

The system cannot pick this up, if only declared as a single claim.

calcotti

tomtom256 said:

That is interesting calcotti, as normally the none eligble partner would become an ineligble partner on the claim, effectively making it a single claim, so that RTI data etc feeds through as normal.

The system cannot pick this up, if only declared as a single claim.

That’s interesting. I am only going by the guidance, I am not familiar with how the software works. Obviously OP is going to have to go by what she has been told and guidance confirms that claiming as a single person is not fraudulent.
You are suggesting, if I understand correctly, that from a practical point of view they would both claim but the system would Note that no allowance is to be included for the ineligible partner. I can see the logic of that because system could then pick up RTI information for that person whereas if claim is made as a single claim it presumably will not do this.
if I was a PSIC I would be less confident if I had to be included as a claimant because if DWP get it wrong and pay me benefit I would then jeopardise by future immigration status. Much more comfortable if processed as advised to OP.

calcotti

OP, another point to note is that your UC payments will not be based on the income figures you put on the application. Your UC payment is calculated each month based on earnings actually received by you and your partner during the month. When you are paid your employer provides information to HMRC and they then pass it to DWP.

Cferg

calcotti said:

OP, another point to note is that your UC payments will not be based on the income figures you put on the application. Your UC payment is calculated each month based on earnings actually received by you and your partner during the month. When you are paid your employer provides information to HMRC and they then pass it to DWP.

Thank you for that clarification. It's all very confusing for me (I get anxious with new information, especially when it comes to money) 
I guess I am just worried that it may affect my husband's visa renewal. I know that the people I spoke to advised on what was best, but it does scare me that I may be processing something so important incorrectly. 

calcotti

If there are any important messages on your journal it is worth taking a screen grab or printing off so that you have a record just in case the messages get overwritten at a future date (which can happen).

tomtom256

calcotti said:

That’s interesting. I am only going by the guidance, I am not familiar with how the software works. Obviously OP is going to have to go by what she has been told and guidance confirms that claiming as a single person is not fraudulent.
You are suggesting, if I understand correctly, that from a practical point of view they would both claim but the system would Note that no allowance is to be included for the ineligible partner. I can see the logic of that because system could then pick up RTI information for that person whereas if claim is made as a single claim it presumably will not do this.
if I was a PSIC I would be less confident if I had to be included as a claimant because if DWP get it wrong and pay me benefit I would then jeopardise by future immigration status. Much more comfortable if processed as advised to OP.

Yes from a practical view point, the software can't do this without the data being fed in as the system only asks for an earnings feed for those listed on a claim and couldn't raise a to-do to tell the OP to report any of her partners earnings etc.

It shouldn't in theory affect any future immigrastion status, but then this is the government we are talking about.

Although I am happy to be corrected, if I am wrong.