In Quantum Field Theory, each species of particle is a separate field. There can be a photon in a position, and a neutron in the same position, with no problem - they don't need to "cheat" to be in the same position. The theory's Lagrangian determines how the individual particles move when undisturbed, and how they interact when they meet at the same place (e.g., a photon and electron may annihilate and create a new deflected electron - this is how photons interact with electrons).
The photon only interacts with charged particles, which is why it wouldn't interact with a neutron. However, they can still interact through various second-order interactions - e.g., a neutron temporarily converts into a proton and an electron, the photon interacts with the electron, and the electron and the proton turn back into a neutron. These second-order interactions have very low probability of happening ("cross-section") because it is the multiplication of the probabilities of all the separate interactions happening.