If only you could withdraw the single adult claim - remember tax credits has no reverse gear. I reckon the best thing will be to re-claim as a couple, in order to kill the single person claim. This new, couple claim will founder because of the NINO problem (can't remember the outcome of the tax credits NINO debates that have raged before in these pages).
Knowingly claiming as a single person when you know you are a couple is tempting a compliance investigation, as Derek says. An 'incorrect statement' based error such as this carries the risk of a penalty of up to £3,000 (plus Clink if the Revenue really wanted to go for you), although it would appear that there has been very little compliance activity generally, from HMRC (this might be a resources issue though).
Clients only 'defence' would be the advice from JC+, which I don't imagine there is any proof of, since it is so ridiculous. Even if there were proof, I do not think this would be enough to protect the client from a compliance broadside.
Lastly, I do not think the May 2007 version of the 'notional entitlement' provisions will help here to reduce any overpayment, because there almost certainly be no 'genuine error' case to based it on at the claim stage, for reasons set out above.
Pip pip!
Steve
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