Husband recieving tax credits for his business

(I posted this in the visa section too, I wasn't sure which place to post it) I have a question that relates to my husband recieving tax credits and if that affects my FLR-M visa. He owns his own business but gets tax credits/benefit because it's not making much money. He recieved the new application form your supposed to fill out in May but was also going through bankruptcy, which he did in March, the same month we got married! Yes it was stressful. He forgot to fill this in because it was due in July and he thought he had time, now they stopped his tax credits and benefit. Our worry and question is if we were married since March and he was recieving these business tax credits (benefit) does that affect the terms of my Visa? (FLR-M not supposed to recieve any benefit).
We have the form here and we're not sure how to fill it out or who to ask.
thank you for any advice!

(I posted this in the visa section too, I wasn't sure which place to post it) I have a question that relates to my husband recieving tax credits and if that affects my FLR-M visa. He owns his own business but gets tax credits/benefit because it's not making much money. He recieved the new application form your supposed to fill out in May but was also going through bankruptcy, which he did in March, the same month we got married! Yes it was stressful. He forgot to fill this in because it was due in July and he thought he had time, now they stopped his tax credits and benefit. Our worry and question is if we were married since March and he was recieving these business tax credits (benefit) does that affect the terms of my Visa? (FLR-M not supposed to recieve any benefit).
We have the form here and we're not sure how to fill it out or who to ask.
thank you for any advice!

He's allowed to claim benefits as he is British.  So long as he isn't claiming more because of you, it's fine.  Does he still meet the £18,600 annual income to sponsor you?  Or did you apply using a different source of income for the initial visa?

We applied based on my savings.
He needs to make a new application for tax credits because we're now married. This application form asks for details of income for partner, between April 2014 and April 2015. Given that I'm a US citizen and not a UK tax payer, we're not sure what to fill in. Do I have to put my income based on interest from savings too and then include some kind of note about my citizenship? Do I put anything being that I'm not a UK tax payer?

As long as you still have the £62,500 in savings and he hasn't claimed any benefits based on you. Living with him, you are good to go.  You don't need to mention his income at all.

Thanks so much KFdancer, that does help. I'll be ok based on my savings if I don't touch it! I guess filling out this tax form will get me on the UK tax system. We're going to phone to ask about if they need to know about my income in the US.
I'm going to email or call a tax for expats company I saw online, I need to hire one anyways.

We applied based on my savings.
He needs to make a new application for tax credits because we're now married. This application form asks for details of income for partner, between April 2014 and April 2015. Given that I'm a US citizen and not a UK tax payer, we're not sure what to fill in. Do I have to put my income based on interest from savings too and then include some kind of note about my citizenship? Do I put anything being that I'm not a UK tax payer?

As you are now on a joint Tax Credits claim, I assume you must declare your savings especially as you used this for the financial requirements for your husband to show he could sponsor you.  The £18,600 earnings to sponsor a partner is set at that amount to stop someone who sponsors from claiming Working Tax Credits: the WTC cut off is presently about 18k earnings for a couple, but that will reduce in April 2016 under the budget changes.

Savings reduce Tax Credit payments too. They don't calculate on the interest you actually earn from your savings but on a set formula they have to use, which is more than you will get in interest. I think I read on a forum that it is a £1 reduction for each £250, but don't take my word for that. If it is, that will be a reduction in Working Tax Credit of £48 per week for savings of 62.5k in a full tax year.

You can't take the second adult element of WTC unless there is a child in the household, as you are subject to immigration control.

Although Tax Credits is an income based benefit, it has an anomaly that it is the only income based benefit that doesn't have a cut-off of 16k savings. When Tax Credits are replaced by Universal Credit, those with 16k in savings, capital, equity in land or a property they don't live in, will not be able to claim. Self empolyed claiming Universal Credit who declare they earn less than the hourly national minimum wage, will have their claim based on them earning the NMW, even if they don't earn that much. 

We applied based on my savings.
He needs to make a new application for tax credits because we're now married. This application form asks for details of income for partner, between April 2014 and April 2015. Given that I'm a US citizen and not a UK tax payer, we're not sure what to fill in. Do I have to put my income based on interest from savings too and then include some kind of note about my citizenship? Do I put anything being that I'm not a UK tax payer?

Hi Mary -

It might be a good idea for you and your husband to read up on tax credits and how they work, before you talk to HMRC, so you know what information they're likely to need from you, and why.

There's some good information  at http://www.revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/understanding-living-together/ about how tax credits work, and how marriage changes the situation.

For what it's worth, my guess would be that HMRC is probably considering (a) the tax credits paid in the tax year ending 31 March 2015, and (b) the tax credits paid since the marriage, up until the time they were stopped.  They'll want to determine whether or not there have been any overpayments as a result of the change of circumstances.

Since you married in March (i.e., during the 2014-15 tax year), presumably HMRC have some formula whereby they calculate how much of your 2014-15 income to count in determining how the tax credits due in March should be recalculated on the new "married couple" basis.  My guess would be that that's why they want to know your income for that tax year. 

Make sure they know it was earned and taxed in America - that may or may not affect the calculation.  (I'm guessing probably not, but who knows?)

Good luck.

We applied based on my savings.
He needs to make a new application for tax credits because we're now married. This application form asks for details of income for partner, between April 2014 and April 2015. Given that I'm a US citizen and not a UK tax payer, we're not sure what to fill in. Do I have to put my income based on interest from savings too and then include some kind of note about my citizenship? Do I put anything being that I'm not a UK tax payer?

Since you are UK resident, you are subject to UK tax on your worldwide income and gains unless you elect to claim the remittance basis on a self-assessment return or your non-UK income is less than £2,000 in a UK tax year.