Child Tax Credit

Just a quick question about a child tax credit that my wife is currently receiving.  This is a credit she's receiving while her daughter is in school, and will end when she graduates in June (or maybe July, can't recall).  We aren't sure if my arrival will preclude her from continuing to receive this credit, since I'm not allowed to receive public benefits.  Or would this credit be exempt from that since it was already in progress before I got there?

We know that once I get a job, which hopefully will be soon after arrival, she'd likely no longer qualify for this since it's largely a financial need-based credit.  Just unsure of the time between my arrival and starting work.

If I've got anything wrong or you need further info, please let me know.

Thank you!

Just a quick question about a child tax credit that my wife is currently receiving.  This is a credit she's receiving while her daughter is in school, and will end when she graduates in June (or maybe July, can't recall).  We aren't sure if my arrival will preclude her from continuing to receive this credit, since I'm not allowed to receive public benefits.  Or would this credit be exempt from that since it was already in progress before I got there?

We know that once I get a job, which hopefully will be soon after arrival, she'd likely no longer qualify for this since it's largely a financial need-based credit.  Just unsure of the time between my arrival and starting work.

If I've got anything wrong or you need further info, please let me know.

Thank you!

Despite the name, Tax Credits are nothing to do with taxes. Tax Credits are an income based welfare payment. Even those who don't earn anything can claim for Child Tax Credits as that money is to help their children not live in poverty. As TC is an  income based welfare payment, there is a poverty cap.

As your wife is married, she cannot claim benefits as a single person anymore. For each benefit she claims (Tax Credits, Child Benefit, Housing Benefit etc) she would have signed  each claim to say that she will inform the relevant agency of any change. Did she tell all those agencies when she got married?

For her Tax Credit claim, I think your income might only be counted in her claim from when you arrive in the country but there is also your savings which became hers too when you married.

BUT Tax Credits are one of the six income based benefits being replaced by a new one welfare payment called Universal Credit, under the Welfare Reforms Acts (laws). I'm not sure how UC works, but her being married might have triggered a move from Tax Credits (which are being closed down) to UC, depending on when her area became a full service Universal Credit area.

UC full service was rolled out across the country this year at the rate of about 65/70 job centre areas per month. I have no idea iif UC will regard your income in the US and savings, capital, property abroad etc as part of your wife's income based benefit claim in the UK.


If she did inform Tax Credits that she is married and is still on Tax Credits as Universal Credit wasn't full service in her area when she married you and she was allowed to stay on TC for the moment, she might have had an overpayment anyway. Your name will have to go her TC claim too (so get a NINo when you arrive for that) as it is benefit fraud for her to claim as a single person when she is not. Tax Credits must always be claimed in joint names if the claimant has a partner. I'm not sure how the TC rules work for a partner who lives aboad.

Any overpayment of this years TCs will depend on what she earns in this tax year April 2017/8 and what you earn when in the UK for 2017/8 and your savings. A TC claim has an amount removed for something like every 250 of savings. Tax Credit payments are calculated in arrears at the end of a tax year (April) for payments she has already been given, which is why it is important to telll Tax Credits as soon as there are changes that might affect their benefits, to avoid the overpayments being thousands as that money has to be paid back fairly quciklly.

For Tax Credits, the next tax year starts 6 April 2018 to 5 April 2019. If you jointly earn too much in that tax year for Tax Credits and your savings reduce the payment further, then any overpayments for that tax year will have to be paid back too.

If your wife is moved to Universal Credit instead of Tax Credits, you and your wife will claim monthly, if your wife is allowed that benefit as the rules are different to TC.  Universal Credit has a 16k savings/capital cap, in line with what the other income based benefit already have: with some limited protection on that for those moved onto UC from TCs (as TCs don't have a savings/capital cap).

Under the Tax Credits rules, she could have added you to her TC claim between you arriving and working, and claim extra benefits for you despite you having no recourse to these public funds. But as I said, I think she might have "triggered" a  move to UC. Therefore as she triggered the change , there would be no financial transitional protection for her by moving to UC; she can't claim extra benefit money for you as that is being stopped under UC, she will have to follow UC rules, etc.  Your joint savings may get some transitional protection to allow her to have a UC claim.

However, as your wife needed to tell all the benefit agencies she claims from that she is no longer single and told them of your joint savings/capital etc, they will have already told her by how much her benefits will be reduced/end.  If she still hasn't told all the benefit agencies she claims from, it will look better for her if she tells them this rather than they write to her about it: government agencies share information. As you provided proof to UKVI that you are married and proof of your joint savings to meet the financiall requirement for your visa, then the benefits agencies will find that with their regular data matching with the UKVI records.

Despite the name, Tax Credits are nothing to do with taxes. Tax Credits are an income based welfare payment. Even those who don't earn anything can claim for Child Tax Credits as that money is to help their children not live in poverty. As TC is an  income based welfare payment, there is a poverty cap.

As your wife is married, she cannot claim benefits as a single person anymore. For each benefit she claims (Tax Credits, Child Benefit, Housing Benefit etc) she would have signed  each claim to say that she will inform the relevant agency of any change. Did she tell all those agencies when she got married?

For her Tax Credit claim, I think your income might only be counted in her claim from when you arrive in the country but there is also your savings which became hers too when you married.

BUT Tax Credits are one of the six income based benefits being replaced by a new one welfare payment called Universal Credit, under the Welfare Reforms Acts (laws). I'm not sure how UC works, but her being married might have triggered a move from Tax Credits (which are being closed down) to UC, depending on when her area became a full service Universal Credit area.

UC full service was rolled out across the country this year at the rate of about 65/70 job centre areas per month. I have no idea iif UC will regard your income in the US and savings, capital, property abroad etc as part of your wife's income based benefit claim in the UK.


If she did inform Tax Credits that she is married and is still on Tax Credits as Universal Credit wasn't full service in her area when she married you and she was allowed to stay on TC for the moment, she might have had an overpayment anyway. Your name will have to go her TC claim too (so get a NINo when you arrive for that) as it is benefit fraud for her to claim as a single person when she is not. Tax Credits must always be claimed in joint names if the claimant has a partner. I'm not sure how the TC rules work for a partner who lives aboad.

Any overpayment of this years TCs will depend on what she earns in this tax year April 2017/8 and what you earn when in the UK for 2017/8 and your savings. A TC claim has an amount removed for something like every 250 of savings. Tax Credit payments are calculated in arrears at the end of a tax year (April) for payments she has already been given, which is why it is important to telll Tax Credits as soon as there are changes that might affect their benefits, to avoid the overpayments being thousands as that money has to be paid back fairly quciklly.

For Tax Credits, the next tax year starts 6 April 2018 to 5 April 2019. If you jointly earn too much in that tax year for Tax Credits and your savings reduce the payment further, then any overpayments for that tax year will have to be paid back too.

If your wife is moved to Universal Credit instead of Tax Credits, you and your wife will claim monthly, if your wife is allowed that benefit as the rules are different to TC.  Universal Credit has a 16k savings/capital cap, in line with what the other income based benefit already have: with some limited protection on that for those moved onto UC from TCs (as TCs don't have a savings/capital cap).

Under the Tax Credits rules, she could have added you to her TC claim between you arriving and working, and claim extra benefits for you despite you having no recourse to these public funds. But as I said, I think she might have "triggered" a  move to UC. Therefore as she triggered the change , there would be no financial transitional protection for her by moving to UC; she can't claim extra benefit money for you as that is being stopped under UC, she will have to follow UC rules, etc.  Your joint savings may get some transitional protection to allow her to have a UC claim.

However, as your wife needed to tell all the benefit agencies she claims from that she is no longer single and told them of your joint savings/capital etc, they will have already told her by how much her benefits will be reduced/end.  If she still hasn't told all the benefit agencies she claims from, it will look better for her if she tells them this rather than they write to her about it: government agencies share information. As you provided proof to UKVI that you are married and proof of your joint savings to meet the financiall requirement for your visa, then the benefits agencies will find that with their regular data matching with the UKVI records.

Thanks for the info. Tax credits and blah blah are something I don't know much about, they work differently in America apparently.

What we really need to know is can my wife add me to her working tax & child tax claim? Because she is claiming on her part time working hours plus having a child in full time education. Our income won't change until I get a job. Until then can I be named on that claim or would that be considered as me having public funds?

It's my understanding that while some credits/benefits in the UK take savings into account, this particular one does not.

And just to clarify, these are the only benefits she receives.

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What we really need to know is can my wife add me to her working tax & child tax claim? Because she is claiming on her part time working hours plus having a child in full time education. Our income won't change until I get a job. Until then can I be named on that claim or would that be considered as me having public funds?

We can't answer yes or no to your questions as we don't know what the Tax Credits office staff told your wife when she reported to them that she had married. They either kept her on TCs for the moment, or she will "trigger" her move onto Universal Credit instead.

Nor do we know what your joint savings are or how much your wife earned last tax year, or what you and she will earn this tax year; all things that could end a Tax Credit claim.

Has she told the Tax Credit office within 30 days that she is now married?
https://www.gov.uk/changes-affect-tax-credits/changes-you-must-report
You are asking question that only your wife will know the answers to as the Tax Credit staff would have told her all this when she reported her marriage to them.

Your wife will already know when her area is going on/or went on, a Universal Credit full service area. UC has different rules for claimants compared to TCs.

If the Tax Credit office staff told your wife that they won't move her onto Unversal Credit when she reported her marriage to them, then I have already explained how that works for you both above. Not all areas are on Universal Credit full service yet.

It's my understanding that while some credits/benefits in the UK take savings into account, this particular one does not.

Your understanding is not correct. As said above, a Tax Credit claim is reduced by a set rate of interest for savings, based on something like every £250 of savings. TCs set the rate even if you don't get that rate of interest on your savings. That interest is then counted as earnings.

If your wife is moved onto UC from Tax Credits (because she has to reclaim when she married as she is no longer single) then those with savings and capital over 16k cannot claim UC. Tax Credits is an income based welfare payment and is being brought into line with the other income based welfare payments which already have a 16k savings cap.There is some protection from this 16k cap for those moved to UC from TCs.

If she is allowed to still claim UC because of transitional protection on savings over 16k, on UC she will not be allowed to only work part time because her youngest child is a teenager. Although she would have to work at least 30 hours a week anyway to get  Working Tax Credits when her daughter leaves school and that might mean that all her Tax Credit benefit will end due to her higher earnings.
Tax Credits claimants who have child/ren at school could choose not to work a full week and then claim extra benefits, but once moved to Universal Credit, claimants can't choose not to work a full week anymore. On UC she cannot claim extra benefits for you as you have no recourse to public funds, but if she is not moved on UC by your marriage triggering that change, she might be able to claim TCs for you too.

And just to clarify, these are the only benefits she receives.

What about Child Benefit? She had to report her change of circumstances (marriage) to them too. Child Benefit is not affected by savings.

Are you sure your wife isn't claiming other benefits for housing?

If she rents and claims Housing Benefit, 16k plus savings is too much to get that income based benefit. HB (or LHA for private lets) will be ending and be replaced by Universal Credit too under the Welfare Reform Acts. As said, UC will have work requirements for claimants of working age, whereas HB didn't as that is just based on low income with no requirement to work full time.

If she has bought a property and claims the benefit SMI (Support for Mortgage Interest) that benefit is ending in April 2018. This was announced in 2015 to give people a chance to prepare for this change. Most people have insurance for if they lose their job or get sick.

If she ls claiming the income based Council Tax Allowance/Reduction benefit (used to be called Council Tax Benefit) 16k savings is too much to claim that benefit.

If she is claiming 25% single person discount on her council tax bill, she will lose that when you move in, even if you haven't got a job. She will need to tell her council's tax office as soon as you move in. Councils are really good at using data matching to detect fraud, so don't delay on reporting changes to councils.