HMRC Tax Credits and other benefits

[martin2006]

The main question is "who do i inform and when?"

 

The scenario is that i have now closed my benefits claim, IS, CA and HB/CTB

 

I am planning on moving to my partners property.

 

 

She lives with her 4 daughters and is in full time work, receives CTC and single persons CTax relief of 25%.

 

My IS will run on for 8 weeks.

 

 

If i moved in now, would this have any detrimental effect on her.

 

 

I know that the CTax relief will stop

 

 

but the query is would the 8 week run on affect anything else or should i stay put till its fully finished.

[smokiejoe]

When you move in your partner needs to notify tax credits she has a partner.

 

 

Depending where she gets through to, they will either take the details of you both over the 'phone and look to set up a new joint claim, which can mean a new claim in place very quickly, or a new claim form will be issued.

 

 

Tax credits for the single claim and associated payments will end immediately and a new joint claim will depend on how quickly the forms get to you, are completed, then returned and actioned.

 

 

You are advised to allow 2 weeks for the form to get to you (it doesn't usually take that long), and the aim is to get the claim in payment within 3 weeks of receiving the completed form back, as long as the form is completed correctly and fully for the relevant parts.

 

Depending on her income and working hours, it could mean an entitlement to working tax credit.

 

 

If she works at least 24 hours (minimum working hours needed to get wtc for a couple) and have a joint current tax year (6 April '16 to 5 April '17) taxable household income of under £18k, by having you in the house could increase the income threshold and qualify for WTC.

 

 

You also need to consider what the joint taxable income for the previous tax year would add up to, as there is a £2500 disregard that could have an impact on tax credit entitlement in the current year (did you work at any time in the previous tax year? How much taxable benefits, such as carers allowance or similar did you get?)

 

I'd also suggest notifying the council immediately, and check with the benefits office if you will indeed get the IS run on once you've moved in with a partner in work.

[GamerNic]

One thing you must be careful of is to make sure Tax Credits know when the IS ends, especially if you have any WTC elements (doesn't matter if you actually get the money, if the elements are on the award notice).

 

 

The form usually asks if you are on IS, but if that goes on the system you may get maximum WTC and CTC which often lands people with huge overpayments as they don't see it on the notices.

 

 

Perhaps a short covering letter with the application form, then once the IS ends, check TC is aware.