Tax credits when living abroad

karenj

Caz3121 wrote: »

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?

Yes I do and yes it does because I am paid from the day I leave and the day I return as well as the working days. I have checked this with a qualified accountant and it is legally tax deductable for this reason.

karenj

cifpower wrote: »

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.

No I am not a British subject. I was born in Manchester, so therefore I am an English subject! So is it fair then to say that people who have lived and worked in the UK and paid NI contributions all their working life like my mother who is 72, should next year get a flat rate of pension the same as others who have paid nothing into the system???

karenj

tomtontom wrote: »

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?

Ten years?? No I only claimed for the last 2 years when I found out I could as a cross border worker. Lots, is the answer to the next question.

meer53

Why do you rent out your house in the UK ? Why not live in it ?

Icequeen99

karenj wrote: »

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.

Do you have an actual cycle of work? Is it 3 weeks on 3 week off or does it vary.

You can't just choose to average over the year. There has to be a recognisable cycle to the work over the period of 1 year - the provision is often used for term time works. In that case you still don't average, you disregard the school holidays or similar vacations during which you do not work. And even then, the legislation refers to employment for this provision not self-employment.

I think your situation will be interesting when compliance apply the new self-employed worker rules.

IQ

[Deleted User]

karenj wrote: »

No I am not a British subject. I was born in Manchester, so therefore I am an English subject! So is it fair then to say that people who have lived and worked in the UK and paid NI contributions all their working life like my mother who is 72, should next year get a flat rate of pension the same as others who have paid nothing into the system???

There's no such thing as an English subject. You are either a British citizen or not?

shegirl

I am struggling to see why anyone would want to live in the UK for 3 weeks at a time,away from family, working 50 hours a week yet not earning enough to go over working tax credits thresholds.

Yes,you are deducting your travel as expenses but still, you work at least 50 hours and also rent out your own property but have a low income that TCs need to top up?

I think a compliance check will be very interesting.

How much do you get paid?

10pence

Curious about a few things here:

Tax status and residency in light of the new 183 day tax rules for both Spain and the UK, and the disclosure rules. Read more here: LINK

Rented property: does it have a BTL or residential mortgage; if the latter the lender has t be informed and also you cannot claim the tax back off the interest paid as per BTL. If residential mtge cannot rent cannot be offset against mtge as deductible and there rental income is income for self-assessment.
Insurance company informed it's rented as if still residential insurance it will be void.

Self-employment/Carer/working hours.
New rules for WTC and NMW will affect you, because if claiming WTC and working those hours you are being paid below NMW. Which will not be acceptable.
Working hours: you state less than 2 hours per working shift; this is in breach of current employment laws, regardless of the 'unmeasured hours' rules for live in workers.
Plus if working - 'live in', regardless of sleep you need to be paid NMW if 'sleeping' all those ours NMW needs to be paid. LINK
Rest breaks; whilst there are some exceptions to the working hours rules for live in domestic staff, this cannot be transferred to a carer. I fear that if your charge had a serious incident during one of your prolonged carer periods you could be held grossly negligent.


It would be interesting to see your 'books' and full disclosure of both UK and Spanish assets.

NYM

How does the person you care for cope for the weeks you're not there ..and of course, who foots the bill that amounts to £52,000 odd to the Carers?

billywilly

karenj wrote: »

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.

This is far more common than people think. One of my brother in laws, owns two properties, one in south Manchester (which is let out through the LA to his two children - it was originally a RTB property that he bought as an investment) and the other is in Addis Ababa, Ethiopia.
He works in the UK but lives with his partner and third child in Africa. His ex wife and their two children live in Manchester.

Like you he also receives WTC