Ending tax credits

Flowers1903 · 2021-09-18T17:10:45+00:00

Hi I was wondering if anyone had any experience of ending their tax credits claim. I've been a single parent for a few years but have recently met someone and our relationship is now becoming more serious and we are now official. I will be phoning to stop claiming tax credits but wondered what info I'd need. I do not know my new partners salary. We haven't discussed these things as it hasn't been relevant but I do know I wouldn't be eligible for tax credits anymore. Do I need this info before I call or am I able to just stop claiming?

Chasingsquirrels · 18/09/2021 18:15

When my late DH moved on with me several years ago I just called tax credits and ended the claim and that was it.

Bagelsandbrie · 18/09/2021 18:16

If you don’t know your partners salary are you sure it would take you over the threshold? How can you set up as a family when you don’t know your joint income?

Flumo · 18/09/2021 18:17

Has he moved in? If he hasn't you don't need to tell them.

Fluffypastelslippers · 18/09/2021 18:24

You are ending a claim so that's all you need to say. They don't need to know anything else.

Fluffypastelslippers · 18/09/2021 18:25

@Bagelsandbrie

If you don’t know your partners salary are you sure it would take you over the threshold? How can you set up as a family when you don’t know your joint income?

It would t matter if it does or not. Any changes would mean the move to UC anyway.

Pepsiandcurley · 18/09/2021 21:58

I called them and told them I was ending my claim due to a change in circumstances.
They told me I had an overpayment which I could pay straight away in one or set up instalments. I paid it straight away
Was a very simple process

megletthesecond · 18/09/2021 22:06

If you don't know your new partner well enough to know their salary is it wise to put all your eggs in one basket?

DamnUserName21 · 19/09/2021 01:30

You are giving up your financial security to move in with this person. You don't know his salary. Are you splitting the rent and bills 50 %each? Is he able to make up some of the money you will lose? Will you end up with less money (by losing tax credits) and he more by having someone share the bills?

Original poster

Flowers1903 · 19/09/2021 07:44

@Pepsiandcurley

I called them and told them I was ending my claim due to a change in circumstances. They told me I had an overpayment which I could pay straight away in one or set up instalments. I paid it straight away Was a very simple process

Was it a significant overpayment? How did you owe money if you informed them straightaway? I'm concerned I may end up owing money. Thank you for your reply

OP posts:

Needanewadventure2021 · 19/09/2021 08:23

This is because TC are worked over the year.

For example I've been looking for new jobs which if I get offered one, the salary is likely to mean I am no longer entitled. If this is the case I will have a to pay back all the TCS I've been paid up until I inform them because my annual earnings will have pushed me over being entitled to anything.

In your case I suspect you will still be required to submit your annual declaration next year. This is when you will be required to submit your annual household income. It doesn't matter if your partner moves in 6 or 7 months into the year as its based on a year. HMRC will have all information of both your earnings. I believe your entitlement for this year will be based on both your incomes as you will have moved in together.

I hate TCS for this reason as if any changes happen in a year you are likely to end up with an overpayment as its based on 12 months rather than real time. I also feel its unfair as untl you close your claim you were entitled and needed them.

I think I've explained correctly.

I was told the best time to make changes is the new tax year, so April not that this is ideal but its a new year and new entitlement

Original poster

Flowers1903 · 19/09/2021 08:34

@Needanewadventure2021

This is because TC are worked over the year.

For example I've been looking for new jobs which if I get offered one, the salary is likely to mean I am no longer entitled. If this is the case I will have a to pay back all the TCS I've been paid up until I inform them because my annual earnings will have pushed me over being entitled to anything.

In your case I suspect you will still be required to submit your annual declaration next year. This is when you will be required to submit your annual household income. It doesn't matter if your partner moves in 6 or 7 months into the year as its based on a year. HMRC will have all information of both your earnings. I believe your entitlement for this year will be based on both your incomes as you will have moved in together.

I hate TCS for this reason as if any changes happen in a year you are likely to end up with an overpayment as its based on 12 months rather than real time. I also feel its unfair as untl you close your claim you were entitled and needed them.

I think I've explained correctly.

I was told the best time to make changes is the new tax year, so April not that this is ideal but its a new year and new entitlement

Thanks very much for explaining. Looks like I'd have to pay quite a bit back then unfortunately.

OP posts:

Needanewadventure2021 · 19/09/2021 08:45

@Flowers1903 I think I have explained right.

You will be ending your claim due to a change in your circumstances/household income. I guess it works the same as if I would be offered my new job as despite different circumstances it's based on household income over the year.

If I get my new job I will have to pay back everything I've been paid from April and the thought makes me feel sick. TC have been absolutely necessary for me and my son to survive and simply by bettering myself I will end up in debt because I'm no longer entitled. This is why UC works better as its based on real time than annually but UC is a significant loss or me which is why I remain on TC.

Alternatively I've been thinking it may not be so bad. You need to find out your partners income as it will be accounted for. Calculate your earnings for the year and add his from the month he moves in so pro rata his. However if it still takes you over entitlement thresholds I'd expect an overpayment

Original poster

Flowers1903 · 19/09/2021 08:56

[quote Needanewadventure2021]@Flowers1903 I think I have explained right.

You will be ending your claim due to a change in your circumstances/household income. I guess it works the same as if I would be offered my new job as despite different circumstances it's based on household income over the year.

If I get my new job I will have to pay back everything I've been paid from April and the thought makes me feel sick. TC have been absolutely necessary for me and my son to survive and simply by bettering myself I will end up in debt because I'm no longer entitled. This is why UC works better as its based on real time than annually but UC is a significant loss or me which is why I remain on TC.

Alternatively I've been thinking it may not be so bad. You need to find out your partners income as it will be accounted for. Calculate your earnings for the year and add his from the month he moves in so pro rata his. However if it still takes you over entitlement thresholds I'd expect an overpayment[/quote]
Ah OK so I wouldn't have to include his yearly salary but just from the month he moves in? Is this correct do you think? We aren't planning on moving in together straight away, I just wanted to make sure I wasnt doing anything wrong and declare the relationship however it is very confusing. I do know his yearly salary would take us over the threshold and he is self employed. I just don't know how much exactly as it hasn't been my business to know exact amounts up until now. So it looks like I will need this info before calling and cant just stop claiming? Thanks very much for taking the time. I think i have understood.

OP posts:

Janek · 19/09/2021 09:19

Don't do anything until you actually move in together! And if you aren't planning on doing it straight away, why not move in together as soon after the start of the financial year as possible (ie after 6 April).

BlueistheNewme · 19/09/2021 09:29

If he isn’t living with you, or paying your bills etc then you don’t need to tell them. If you have separate finances then you are still single.

How many children do you have ? If you have more than 2 children, and plan on living together you need to give it serious consideration.

If you stop the claim for tax credits, and later have to claim Universal Credit, only 2 children will be included in the claim. That would mean being financially worse off.

It’s a big decision financially for you and the children, as you would become financially vulnerable. If you’re not earning enough to pay for your childcare/outgoings then you will be reliant on him.

So being clear with him about this, and his views is really important. You need to make sure that you are in a position to end the relationship if needed and still have a home for your children and you.

Needanewadventure2021 · 19/09/2021 12:46

I know what you mean about doing anything wrong but you won't be financially connected or even living together so I wouldn't rush into anything as you would lose your entitlement and no guarantee he will be bridging the gap. Honestly if you arent living together I wouldn't. Although it is very confusing with the rules on being in a relationship. I personally don't see how they can stop your claim if your aren't financially joined however I have read on here before that other people have experienced a change by simply being in a relationship. The rules aren't very clear.

I was going to mention it earlier but another poster already has. Maybe use this time now to see how things go and look to become joint when the new tax year begins. That will avoid an overpayment as its a new year. I'd love to find a new job as close to next April as possible as I know if I do it before, my overpayment will be huge. But I need to be earning more money now

Original poster

Flowers1903 · 19/09/2021 14:54

@BlueistheNewme thank you. I was just worried if we are classed as being in a relationship then I'd need to declare this. As I said I'm just worried I do something wrong and end up in debt. I have 3 children. I would 100% weigh up my options and make sure I will be OK in this relationship and if things do not work out. Thank you for your advice.

@Needanewadventure2021 thanks so much for taking the time for your replies. I feel for you. Its not fair you might end up owing this money back. Good luck for the job. I hope it all works out for you! I will seriously consider everything you have said and thank you for the advice!

Thanks everyone who has replied. I've taken it all on board!

OP posts:

Chasingsquirrels · 19/09/2021 16:03

When I ceased mine (because my DP move in) it was October, I don't recall having to submit a final declaration with my annual income (but can't remember either way as it was a few years ago) but definately DID NOT have to complete a joint declaration - I had a single claim and ended a single claim when he moved in, it was never joint and they never asked for any joint information.

quittingteacher · 19/09/2021 16:09

I made sure my DP moved in on 1st April and called and cancelled my claim that day so I had no overpayment as it was the new tax year.

Pepsiandcurley · 19/09/2021 21:22

It was £380 overpayment.
Good advice about waiting until the start of the financial year.

pippapoo62 · 21/09/2021 16:57

Ended my claim and got a bill for £1300 a few weeks later , they said I was overpaid .

Needanewadventure2021 · 21/09/2021 17:17

It seems that most people who end their tax credits part way through the year end up with an overpayment. It really makes me wish I could hold out to switch jobs closer to next April

MyDcAreMarvel · 21/09/2021 18:23

@BlueistheNewme @Flowers1903
If you stop the claim for tax credits, and later have to claim Universal Credit, only 2 children will be included in the claim. That would mean being financially worse off. that isn’t true , if you receive money for all three with tax credits the same applies to UC.

BlueistheNewme · 21/09/2021 20:16

Yes, you’re right. Apologies, the full details are here:
www.gov.uk/guidance/claiming-benefits-for-2-or-more-children