Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
Unfortunately it is not and never can be your liability, that rests with the owner, your daughter.
The net rental ie rent after normal outgoings eg this list from Which:
'The most common types of expenses you can deduct are:
The expense should be incurred wholly and exclusively as a result of renting out your property'
From this income can be deducted her normal personal allowance, the balance is then taxable at her marginal rate.
Of course you can settle her bill, but it still remains her income.
I am so sorry to have to rain on her parade.
Those in receipt of Tax Credits must report any change in their circumstances to the Tax Credit Office within 30 days. Depending on the nature of the change the entitlement may be, in this case, reduced.
I regret so and the Tax Credit Office are always keen to pursue any over payments. I suggest that any further professional advice will prove more costly to obtain than would be recovered. Fees will be well into the three figures.
Delighted to have been of assistance.
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