Co-Habiting and Tax?

A

Andy_and_lou

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Recently myself and my boyfriend got engaged, I have an affordable house and he has been out renting and is now moving in with me. I'm a single mum to one and am currently getting Single Parent Tax Credits. Does this automatically go if you are co-habiting? If so do I notify the revenue that I am now living with someone or do they just put 2&2 together and see his address is the same as mine and take it off the single p credits automatically? What if things don't work out with us living together and my boyfriend moves out?(not that I really want to think of that situation but I have to be practical) Is it difficult to get the Single P Credits back or even can you get them put back?

I would appreciate if anyone could let me know what I should be doing

Thanks
 
Also I re-ceive a small amount of FIS 20e per week based on my last years salary, should I contact them and get this cancelled, it's due for renewal in September but I won't be applying again.
 
I wouldn't do anything for a few months. How is revenue suppose to know if you and your boyfriend are living together.
I don't think they could pick it up from the address unless your boyfriend pays rent and starts claiming rent allowance.

Let it lie for a few months. As a single mum I'm sure these credits are needed and even though your boyfriend will be moving in with you you will still have much the same expenditure.
 
Congratulations on the engagement! I wouldn't agree with the do nothing approach since the Revenue are focusing on this area now. Unfortunately, as a cohabiting couple any payments made by either party that benefits the other are considered as Gifts and are subject to gift tax. This I can vouch for personally! Wait until you are married for any large joint purchases.
 
You do need to notify Revenue, and sooner rather than later.

I do know that it was the case several years ago that if you qualified for the relief for part of the year, you could claim it for the full year but I don't know if that's still the case now.
 
I really have no idea how much the credits are, but imagine that while important to you are not actually that much. Given that your OH will now be sharing bills, ie household bills with you, which should help the situation, you should notify the revenue. Its unlikely that they will identify that he is living at your address, but if they did surely the results would be far more serious that losing it in the first place. If you dont know the answers to the questions, get someone else to ring the revenue and ask the questions. if my BF moved in would i loose the allowance etc.

You maybe able to get your OH to pay rent under the rent a room relief scheme,someone else may be able to offer further info on this, this would not be taxible on yourself, however the income would have to be notified to the revenue but would eliminate the any gift tax issue, and he would be able to get tax credits on the some of the amounts paid.
 
Your local Citizens Information Centre or their national low call number will be able to tell you what you can and can't claim whilst co-habiting (1890 777121)
 
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