Tricky Tax Credit/Benefit Scenario

So female lives apart from partner (both have their own places, pay their own rent/council tax).

1 child lives with female. Female is on SMA (basic Maternity pay).

Partner had been previously supporting female, affectively paying rent on both properties.

However, partner loses job so is now on JSA. Partner needs to claim housing and council tax benefit for his own place.

As partner is on JSA mother needs assistance. Assistance would be via child tax credits which you can claim whilst on SMA.

As they are 'together' tax credits so claim should always be joint. But isn't the joint claim in this scenario going to affect the fathers separate claim for JSA/Council Tax/Housing benefit?

How would it work separating the claim/s?

Comments

  • Ineededaname
    Ineededaname Posts: 148 Forumite
    I think it's likely they would be treated separately if they are not living together or married but I'm not certain for tax credit purposes. Best to contact someone and ask + declare everything honestly.
  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    Do you mean SMP, Statutory Maternity Pay?

    If partners don't live together as if husband and wife then you make a single claim.

    Do you receive child maintenance from the father?
  • NoNoDrama
    NoNoDrama Posts: 237 Forumite
    edited 5 June 2018 at 11:35PM
    Yes , sorry SMP (not SMA) No official Child Maintenance from the father but he was supporting financially to keep both properties going and helping with child. Difference is now no job...he can't support me and will only be able to pay for rent on own property via benefits.

    This leaves the mother to claim. Mother doesn't want to fall foul...if she declared single and they did a recalculation later on a joint claim...I'm pretty sure there wouldn't be anything to pay back. But she doesn't want fall foul in the first place.

    It's very confusing now he has no job income.
  • NoNoDrama
    NoNoDrama Posts: 237 Forumite
    Do you mean SMP, Statutory Maternity Pay?

    If partners don't live together as if husband and wife then you make a single claim.

    I believe for tax credit purposes this isn't true. Don't they use some gray area public perception of whether they a couple or not?

    This is why father helped with up-keep so much in first place and mother hasn't claimed so far for tax credits.
  • Alice_Holt
    Alice_Holt Posts: 5,949 Forumite
    First Anniversary Name Dropper First Post
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    NoNoDrama wrote: »
    I believe for tax credit purposes this isn't true. Don't they use some gray area public perception of whether they a couple or not?

    This is why father helped with up-keep so much in first place and mother hasn't claimed so far for tax credits.

    https://www.gov.uk/hmrc-internal-manuals/tax-credits-technical-manual/tctm09320

    A couple means:
    two people who are not married to each other but are living together as if they were (LTAMC),

    https://www.gov.uk/hmrc-internal-manuals/tax-credits-technical-manual/tctm09340
  • PJG
    PJG Posts: 6 Forumite
    I have a qestion, received a letter from HMRC regarding tax credit claim for period 4/05, so 13 years ago, been divorced since 2008, my x has remarried for 3years, I always understood from accountants that financial statute ends at 7 years, as you only keep financial history for 7 years. However the woman I spoke to as I checked the tel number against hmrc website, said that hmrc doesn!!!8217;t have to abide by that rule/law. Am unable verify what she has said. Any ideas??
  • poppy12345
    poppy12345 Posts: 17,939 Forumite
    First Anniversary First Post Name Dropper
    PJG wrote: »
    I have a qestion, received a letter from HMRC regarding tax credit claim for period 4/05, so 13 years ago, been divorced since 2008, my x has remarried for 3years, I always understood from accountants that financial statute ends at 7 years, as you only keep financial history for 7 years. However the woman I spoke to as I checked the tel number against hmrc website, said that hmrc doesn!!!8217;t have to abide by that rule/law. Am unable verify what she has said. Any ideas??
    Some debt becomes statute barred after 6 years in England/Wales/N Ireland but HMRC and DWP amongst some others aren't included in this. See this link.
    https://www.stepchange.org/debt-info/can-i-write-off-debt/statute-barred-debt.aspx
  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    PJG wrote: »
    I have a qestion, received a letter from HMRC regarding tax credit claim for period 4/05, so 13 years ago, been divorced since 2008, my x has remarried for 3years, I always understood from accountants that financial statute ends at 7 years, as you only keep financial history for 7 years. However the woman I spoke to as I checked the tel number against hmrc website, said that hmrc doesn!!!8217;t have to abide by that rule/law. Am unable verify what she has said. Any ideas??

    After 6 years they cannot take court action however they don't need to as they have other ways of pursuing the debt.
  • Icequeen99
    Icequeen99 Posts: 3,775 Forumite
    poppy12345 wrote: »
    Some debt becomes statute barred after 6 years in England/Wales/N Ireland but HMRC and DWP amongst some others aren't included in this. See this link.
    https://www.stepchange.org/debt-info/can-i-write-off-debt/statute-barred-debt.aspx

    Tax credits are statute barred, it is tax that isn't.

    However as DS says that only means they can't take you to court.

    IQ
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.2K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards