HMRC Compliance Letter last week worried sick....

[robluke]

Here is my situation. After separating from and subsequently divorcing from my ex-husband two years ago (summer 2010) I needed somewhere else to live. A male friend of mine whom I had known for approx 5/6 years offered me the opportunity of moving into his house as he worked away from home a lot and was hardly there.

 

We drew up an agreement which we both signed and we agreed that I would pay him a set amount of money each month either by cash/standing order or both whichever suited me so long as I paid.

 

In the Summer of 2011 we became more than friends and started a relationship and he moved in with me 'as my partner' in November 2011.

 

As he works away and was only actually 'living' at the property a couple of days a month I didnt contact HMRC to let them know of a change of circumstances as I didnt think this would be classed as us living together as a couple and have to make a joint claim.

 

In early April 2012 I actually wrote to HMRC to say that I no longer wanted to claim tax credits. This was because my partner had just found out he would be living with me more due to his job so we decided we wouldnt claim anymore as we know our joint incomes wudnt qualify us for the benefit and he would support me financially.

 

I received a letter from the Compliance Team (this letter had crossed with mine) saying that the information they had for me wasnt correct and that another adult was living with me and if he was my partner we should have claimed as a couple.

 

My worry now is how am I going to prove that he has only been living with me since November as my partner when utility bills etc are in his name because he owns the property. Nothing was put in my name when I moved in because I was a friend and we agreed that if he wanted me to move out he would give me notice and if I wanted to move out I would give him notice.

 

where do I stand? If they say I have to pay back money from November 2011 then thats fair enough but what do I do if they try and say we were living together as a couple since June 2010 when we werent?

 

I can prove the payments I have made to him each month and the agreement but nothing else.

 

thanks

[Gbarbm]

Just respond to the compliance letter with the facts as you have stated them above.

Can I just ask you, are both of you registered at the property for council tax?

[robluke]

Just respond to the compliance letter with the facts as you have stated them above.

Can I just ask you, are both of you registered at the property for council tax?

 

We have only both been registered at the property for council tax this year. Previously it was just registered in his name.

[Gbarbm]

Sometimes when tax credits check claims, they look at who is registered for council tax at the address on the tax credit claim.

[robluke]

Sometimes when tax credits check claims, they look at who is registered for council tax at the address on the tax credit claim.

 

Where would that leave me then. All utility bills were left in his name as we had an agreement that if his work siuation changed and he needed to move back in he would give me a months notice to find somewhere else and I would give him a months notice if I wanted to move to another property.Very worried as how can I prove that he has only been living with me as my 'partner' since November 2011.

[Gbarbm]

It is a difficult one I know.

HMRC prefer to rely on documentary evidence wherever possible; the only thing I can suggest you do is respond to the letter stating the facts as in your original post

[robluke]

Thanks will put everything to them and see what they come back with.

[robluke]

cannot believe that even after writing to HMRC before I had even got the compliance letter to say that I no longer wished to receive tax credits because my circumstances had changed, I have checked my account this morning and they have paid money in!!!!!!! No wonder people dont know whats going on.

[lis79]

Hi Robluke,

 

They may still paying you tax credits because there is a 4 week run on to give you time to claim other benefits.

 

On the other hand, it could well just be that they haven't got round to opening the letter yet as you probably suspect?