Tax credits when living abroad

karenj

Just thought I would post my experience I had claiming tax credits whilst living abroad.

I thought I would see if I was eligible so duly completed the application. After several weeks I was told I did not qualify as I had to be resident in the UK. I kept on writing and asking why and eventually after I challenged this several times and told them that as I am self employed and registered for tax and pay NI contributions, then I should qualify as a 'cross border worker'. This went on for almost 12 months and they eventually agreed that I was indeed entitled to WTC and CTC (as our son is under 20 and is in full time college education in Spain) as I had paid 'into the system in the UK'. I got my claim backdated to over 12 months so I was a happy chappy!

Now, the problem I had is that I did not receive my tax credit renewal pack. They said they had sent it and eventually I received it well past the deadline date. They sent 5 packs that were never received to my address in Spain and also to my address where I work in the UK (??).

Also, they had miscalculated the credits for one year but did not pay me what I was owed. Again, I challenged this (I spoke to the Preston office; the helpline is useless!!) and they paid me what I was owed.

I also was underpaid CTC so I wrote to them (recorded delivery always!) and after someone called me back, this was rectified and I received what was due.

The moral of this is that DON'T GIVE UP and really, the chaps that work in the tax credit office must put up with a lot of hassle every day, but they are really helpful (if you can get through to them). I find it easier to write than call, as the helpline doesn't really have a clue when it comes to complex cases like mine is. Always send your letter to COMPLEX CASE TEAM at the Preston address, certainly for overseas claims.

I would like to add that I am not a 'scrounger' but merely trying to get what I am entitled to. I pay my taxes so I am really getting what people living in the UK get even though I live abroad, but work in the UK.

Hope this helps.

cifpower

In my opinion, if you are not a British subject living in the United Kingdom you should not be entitled to Tax Credits. Or, indeed, any other British taxpayer funded state benefit.

The "I paid into the system" reasoning never works for me. If that should be the arbiter then those who pay most should get most back so those who pay the 40% and 50% tax rates should get proportionately more unemployment, sickness and disability benefits if the need ever arose.

wiltsguy_2

IMO if you don't reside in the UK you shouldn't be entiteld to any benefits, as the money does not get paid back into the UK economy!

Caz3121

It will be interesting to see what pans out with UC
I assume to qualify you actually do work in the UK even though you live abroad
https://www.gov.uk/tax-credits-if-moving-country-or-travelling/crossborder-workers
Given that self employed are being asked to prove their hours for work I wonder whether you will be asked to prove your 16-30+ hours in the UK every week

tomtontom

Given that you have lived in Spain for ten years, and your income is so low as to qualify for WTC, how much do you actually pay into the UK system?

Caz3121

I would not have thought that the weekly travel to the UK for work could be offset against tax as it would be classed as home to place of work
OP - you do actually work in the UK do you not?

FBaby

OP - you do actually work in the UK do you not?

Do the rules actually specify physical presence in the UK to be elligible? Could you claim to be working in the UK by doing say freelance for UK companies, whilst never leaving the comfort of your living room (or garden!)?

Caz3121

FBaby wrote: »

Do the rules actually specify physical presence in the UK to be elligible? Could you claim to be working in the UK by doing say freelance for UK companies, whilst never leaving the comfort of your living room (or garden!)?

the link talks about
"You may be able to get tax credits if you regularly travel from:
another country to work in the UK"

and "you work in the UK"

Looks like a loophole that could be open to abuse, move abroad, register as self employed in UK although not earning enough to pay tax and get a regular payment from the UK government to keep you going in the sun
It does sound very odd but, given the OP has gone through the complex team I can only assume they do genuinely work in the UK
As mentioned I would expect this loophole may end up closed with the increased checks they are doing with the self employed and UC coming in

Icequeen99

Caz3121 wrote: »

the link talks about
"You may be able to get tax credits if you regularly travel from:
another country to work in the UK"

and "you work in the UK"

Looks like a loophole that could be open to abuse, move abroad, register as self employed in UK although not earning enough to pay tax and get a regular payment from the UK government to keep you going in the sun
It does sound very odd but, given the OP has gone through the complex team I can only assume they do genuinely work in the UK
As mentioned I would expect this loophole may end up closed with the increased checks they are doing with the self employed and UC coming in

It isn't a loophole. The legislation requires physical presence in the UK - the work has to be done in the UK and the OP needs to be ordinarily resident in the UK. He doesn't fall within one of the exceptions for claiming outside of the uK>

Cross-border workers can indeed claim - if you live in Ireland but work in Northern Ireland say.

If the OP has told the Tax Credit office that he is doing work in the UK then they have probably allowed the claim, but if he isn't actually physically present here doing the work then I suspect compliance would not take the same view.

IQ

karenj

OK to put my case across and end any confusion or snide remarks. I live in Spain, but I work in the UK as a live-in carer, self employed, complete a yearly self assessment tax return so am indeed classed as a cross-border worker. I spend 3 weeks in the UK (sometimes more) and 3 weeks (or less) in Spain, so I guess I am ordinarily resident in the UK. I have a property in the UK that I rent out, so am paying tax on the income there too. I often spend more time in the UK at the beginning or end of my shift. I go shopping for food and clothes in the UK so I reckon I pay into the economy there.

karenj

Caz3121 wrote: »

It will be interesting to see what pans out with UC
I assume to qualify you actually do work in the UK even though you live abroad
https://www.gov.uk/tax-credits-if-moving-country-or-travelling/crossborder-workers
Given that self employed are being asked to prove their hours for work I wonder whether you will be asked to prove your 16-30+ hours in the UK every week

Average out 3 weeks work with only 2 hours per day as 'break' then yes I am working well over the 30 hours eligibility. It works out as an average 50 hours per week over the year.