Separation
Separation
I know from personal experience that when a personal relationship breaks up the taxman is probably the last person on your mind BUT if you are receiving any form of tax credit you need to contact them even before the lawyer.
We have come across a lady who separated from her husband who was the higher earner - as this effectively reduced the family income she thought nothing about it. All the Tax Credit Office literature in the area of income tends to want to know if your income goes up. To be fair it does mention any change
When they found out 3 years later they clawed back - like she had to send a cheque - all the last 3 years tax credit (£9,000) but did not replace it as she became a new case and had to have told them within a few weeks.
Submitted by Butcher & Co on Wednesday 28th July 2010