My client is working and claiming wtc. His wife has just been moved to a nursing home under continuing care. Should he end his joint claim - and if so when - in the old days there was a nominal 6 weeks temp trial period.

As Holmes would say, 'Watson, this is a two pipe problem'.

Since they are married and are both in the UK, they should still be treated as a couple unless there is a court order separating them, or they are permanently separated. Does the latter apply? Separation in this sense need not mean physical separation (tax credits does not worry about notions of 'household'). I doubt if this kind of case was ever envisaged by HMRC. Even if wife is going into care permanently, you could make a case either way that client is single/couple, depending if they are a couple emotionally etc.

Given the risk of a stupid overpayment decision sometime in the future, I suppose client should write to the Revenue recorded delivery and state the facts, and seek advice from them. It may be that the award does not alter either way. Sadly this would be no justification to leave things as they are.

Thank you for that. I think she nominally still gets the Child Benefit and her DLA and incapacity benefit also maintains the family income but she is not likely to be home before she dies. I have been reluctant to leave decisions up to HMRC because he can do without filling in unnecessary claim forms but you are right that they should be informed to avoid overpayment issues. These could be large as current WTC includes severe disabiltity (due to her of course) and childcare.

It seems to be the case (from what you say) that they are better off being regarded as a couple. So if he is going to write to report the change, it should be in terms of a proposition that are still a couple. Purists might say that in that case, there is nothing to report (because the change has no effect), so carry on as we are, and face any overpayment hassle if and when it arises. To me, tax credits is a bit like VAT... you may be confident that your tax position is right, but good business practice suggests a VAT ruling might be useful.

Good luck

Steve

surely her DLA should now end, then - at least the care part - and he might be better having the child benefit/child tax credit in his name not hers?

Argh - you're right. I'd forgotten about the DLA in worrying about the esoteric dealings with Tax Credits. Then it probabaly makes no odds whether it is a couples claim or not and he may as well fill in single claim now - and get the CB sorted.

Thank you

Unfortunately, the tax credit matter will be anything but esoteric if an overpayment notice turns up. Also, remember that a 'couple based' tax credits claim may yield more money, especially if the partner has no or little taxable income in the relevant income year of assessment (although I think wife gets IB, which is taxable at week 28 etc). This could suggest the need for a 'better off' calculation, especially if the single/couple issue could legitimately be argued either way. This is the sort of case that you want to make an appointment for an unsuspecting colleague to have to sort out...