Working tax credits ; Joint claim to a single claim , or would this be fraud?

kinny999

To keep it concise ill be vague but happy to go into more detail if required. 

My partner and I are in the process of splitting up,  we live together with 2 kids under 10, we cohabit and I'm the main breadwinner, although Mum works part-time and goes to college, and will be going to uni in September.

Our joint claim puts us on the cusp of working tax credits but not by much.

We are planning to cohabit for at least the next 6 months, mostly due to a lease and being financially tied to some extent. We may continue to cohabit afterwards albeit with a new home with an extra bedroom ha! 

My query is this...

Would it be more beneficial if we were to end our joint claim and she becomes classed as a single parent, albeit living with an ex-partner and receiving some support in that I will be paying the lion's share of the bills as has been the way throughout the relationship? Is this even an option or would it risk going into a fraudulent realm?

I appreciate any responders are going to have to ask follow-up questions, I'd answer now but I'm not sure what's really involved or what those questions might be at this stage.

If it helps, my wage is 29k and my ex-partner is a self-employed contractor and at the point, with tax credits where they assume she earns £600 a month. She is earning approx that but on the months she earns less, tax credits treat the joint claim as though she has earnt £600 regardless.

Sorry for the woolly details and vague request for help, but any and all advice is massively appreciated. 

freesha

Apart from anything else, she'd be forced onto UC.

Alice_Holt

Look at this to determine if you still would class as a couple for TC:
https://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/understanding-living-together/

If you decide your are not a couple for TC purposes, then you cannot make a claim TC as a single person as TC has been subsumed into Universal Credit. Any new claim would be under UC rules.
https://www.gov.uk/universal-credit

Note that there is different criteria depending on whether you are married or LTAMAW.

kinny999

Ah ok, we have never been married so that's not an issue.  

I think my main concern is the US still living together for the short term and possibly long term and how the UC would see that and suspect we were gaming the system.

I'll check those links, thanks so far folks 

calcotti

kinny999 said:

I think my main concern is the US still living together for the short term and possibly long term and how the UC would see that and suspect we were gaming the system.

For UC, whether you are two single people or a couple will depend on your living arrangements and how you organise your finances.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/661551/adme4.pdf

elsien

As you’re separating, it’s likely to be less of an issue now. But if you move and carry on living together while insisting that you are still separated, you are going to have a lot more questions to answer.
Will your finances be completely separate at that point? Will you be doing the things together that couples to do shopping, cooking etc.