God, having a discussion with you is sooo tedious. Did you read the part where I said I gave it back? They make a payment to me every month (and no, I don't know the exact name, nor do I care), and when I do my taxes I pay it all back. I don't know how to stop them paying it to me and I don't care enough to find out.
I know how the Tax Credits welfare payments work.
You have to claim welfare payments, they don't just hand them out.
You and your wife needed to apply for the Tax Credits benefit again a few months ago (July?) for your Tax Credits payments to continue. If you didn't apply by that deadline, your benefits would have stopped.
Under the new welfare laws coming in, you and your wife will need to ask for benefits every month There are different rules and stricter requirements. Tax Credits will end and the replacement will be brought in line wirth other income based benefits e.g 16k cutoff including savings, shares, captial in property and land in the UK and abroad, that is not the primary residence etc
Any benefits will be based on your joint monthly income and you may have too much joint earnings that month to have any benefits.
You will not be able to reduce your tax liabilty to claim more welfare payments from the UK anymore under this system. You will have a minimum you must earn each month and even if you don't earn that much/have that much work that month, your welfare payments will not increase that month as you will be expected to find any work to support your children instead of the taxpayers doing that.
Lots of other changes coming in under the new welfare reform laws, for EEA citizens wanting UK benefits and to cancel out the European Court of Justice Rulings from cases brought be EEA citizens wanting UK benefits.
The welfare changes the UK has had to bring in, will mean the UK will no longer be the most generous EEA country for welfare payments for children.