Adviser

​Tax & Benefits Service

​Undisclosed partners and tax credits

A client came to see an advisor at an outreach venue. The client had received a letter from HMRC stating that they believed that a potential undisclosed partner was living at her address and therefore had terminated her single claim award. The client had been separated from her husband for several years; however he still used her address.

The client was distraught and was suffering financial hardship. The advisor informed the client of her options and the client decided that she wanted to request a mandatory reconsideration. The client returned to the advice service with evidence to show that her ex-husband was living at another address and the mandatory reconsideration was submitted to HMRC with along with the evidence.

Next steps

The client was distraught and was suffering financial hardship. The advisor informed the client of her options and the client decided that she wanted to request a mandatory reconsideration. The client returned to the advice service with evidence to show that her ex-husband was living at another address and the mandatory reconsideration was submitted to HMRC with along with the evidence.

Dealing with HMRC

Unfortunately HMRC did not change their decision so the client decided to appeal the decision. The adviser sent further evidence and several months later the client received her bundle and a date for the tribunal hearing. The adviser suggested that she request an oral hearing. The client agreed to this and the adviser prepared a submission to the tribunal stating all facts and evidence of the case.

Outcome

The tribunal examined the evidence and decided that HMRC was not correct to terminate the single claim and the client’s single claim for tax credits was reinstated. This meant that the overpayment of the tax credit was removed and the client received her entitlement of £7,176 approximately, back paid from when HMRC ended the award. Her weekly entitlement also resumed.

The client was delighted that firstly her award was reinstated but also because she did not have to go to a tribunal.