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Not considered 'habitually resident'

Hi all-

I recently lost my job and went through the JSA process. A month later I received a letter from the DWP saying that I'm not entitled to JSA as I am not considered 'Habitually Resident' in the UK.

I came back to the UK in Aug 2007 and have been working (permenantly at international firm) ever since. I am British, my family is British I have no links to any other countries whatsoever.

I was outside of the UK from Oct 2004-to Aug2007 where I worked in the US and I paid my taxes to their IRS. Prior to this lived in UK for over 35 years (since birth) This is my first time I've been unemployed.and I feel like all that NI & tax I've paid is worth nothing

The DWP tell me that they have based this on 2006-2007 &2007-2008 NI payments. What I dont get is that -having had a look through my payslips -I've paid a total of over 5k in NI since Aug 2007.


Could someone advise me as to whether

a) Why am I not habitually resident?
b)Why do DWP not use the latest tax year 2008-2009?
c) What realistic chance do I have for appealing?


Thanks,

Bob
«1

Comments

  • McKneff
    McKneff Posts: 38,857 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The DWP tell me that they have based this on 2006-2007 &2007-2008 NI payments. What I dont get is that -having had a look through my payslips -I've paid a total of over 5k in NI since Aug 2007.

    Its only the two years that they have stated that they work from unfortunately. And they wont move from that.
    Doesnt matter how much youve paid in at any other time.
    Cant answer anything about the 'habitual residence'

    No point in appealing I'm afraid, its the same rule for everyone.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • markyb33
    markyb33 Posts: 25 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Bob, There is some case law on what determines Habitual Residency, (and part of this is proving residency for 2 years in UK) Some of that case law applies to returners to the UK and there is a case put for immediate Habitual Residency on return. The law is complicated and you should seek advice from CAB or a local Law Centre. (Do a google search on Habitual Residency and you can read some of the case law)

    If you prove Habitual Residency and don't have masses of savings you should be entitled to means tested benefits whether you have paid NI in the right year or not. Again I'm no expert, but I would get advice from CAB again.

    Hope that helps
  • calleyw
    calleyw Posts: 9,896 Forumite
    Part of the Furniture 1,000 Posts Name Dropper I've been Money Tipped!
    mcbob wrote: »
    b)Why do DWP not use the latest tax year 2008-2009?

    Because they don't and never have done. Because the DWP year runs on a calendar year not a tax year.

    Next January they will use 2008-2009 tax year but not before.

    Seeing as they start there year in January 2009 how can they use the tax year that does not end until April :confused:

    So it is always two tax years before the current tax year we are in.

    And no I would not waste time appealing.

    Yours

    Calley
    Hope for everything and expect nothing!!!

    Good enough is almost always good enough -Prof Barry Schwartz

    If it scares you, it might be a good thing to try -Seth Godin
  • mcbob_2
    mcbob_2 Posts: 34 Forumite
    Because they don't and never have done. Because the DWP year runs on a calendar year not a tax year.

    Next January they will use 2008-2009 tax year but not before.

    Just read the letter again and it says:

    'We have used the tax years ending 5 April 2007 and 5 April 2008 to assess your claim'

    Now I'm confused!
  • dmg24
    dmg24 Posts: 33,920 Forumite
    10,000 Posts
    mcbob wrote: »
    Just read the letter again and it says:

    'We have used the tax years ending 5 April 2007 and 5 April 2008 to assess your claim'

    Now I'm confused!

    That is what calleyw has said. What is it that you are confused about?
    Gone ... or have I?
  • Dave101t
    Dave101t Posts: 4,157 Forumite
    NI is seperate to tax, you should of been paying NI to UK regardless of being in the USA as its not tax (from HR Revenue's point of view)

    i was in dubai for a year and all my friends over there who had been there permanently from 5 years plus said they kept up the NI for the uk pension and if they ever wanted to return. if you have proof of NI payments, especially class 1, i would of thought you can use this to appeal. people have won alot more appeals with alot less evidence. if you have it.

    on a seperate note, you cant claim JSA if you have savings which id imagine you may have.
    Target Savings by end 2009: 20,000
    current savings: 20,500 (target hit yippee!)
    Debts: 8000 (student loan so doesnt count)

    new target savings by Feb 2010: 30,000
  • MX5huggy
    MX5huggy Posts: 7,168 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Only Class 1 NI counts towards JSA, so paying your own NI won't help you get JSA.

    You can claim Contribution Based JSA no matter what your savings are (but you need the right type of NI paid to the right level in the right years, which is the OP's problem)

    Its income based JSA that you won't receive if savings over £16k

    OP keep going with your claim even if it is for only the NI credits for this year.
  • NASA_2
    NASA_2 Posts: 5,571 Forumite
    I cant honestly say I understand the Habitual Residence decision but the NIC's thing does make sense.

    Appeal the Habitual Residence decision.
  • leveller2911
    leveller2911 Posts: 8,061 Forumite
    Interesting thread, just a quick question(hope Op doesn't mind) .As a self employed person ,I pay class 2 NI and also class 4 which is 5% of my profit for the year,given that my class 2 contributions go towards my pension what does the £2k a year class 4 go towards???.
  • von
    von Posts: 541 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    If you have been resident in the UK since August 2007 there is no way they can say you're not habitually resident in the UK, I would advise that you ask to see the decision to see on what facts they have based their decision and appeal against it. See the link below to show how the Habitual Residence Test is applied (hope it works, apologies if it doesn't)
    http://www.multikulti.org.uk/habitual-residence-test-and-right-to-reside/english/index.html
    In the meantme you can re-apply for Income-based JSA at any time and as often as you want, they will look again at your habitual residency each time you re-apply.
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