Tax credits for people from abroad

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Tax credits for people from abroad

• Mark Willis
• NAWRA meeting, Edinburgh
• 4 September 2009

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Introduction

• Backdating for refugees
• Presence Residence tests - EEA nationals
• Partner/children in another EEA member state
• NINO requirements
• Couples one member is PSIC

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Backdating for refugees

• Claim tax credit within three months of being
  notified of refugee status
• Can be backdated more than three months - treated
  as made on the date claimed asylum under Tax
  Credits (Immigration) Regs, 3
• Grant of asylum is a recognition of refugee
  status it does not confer that status R(IS)9/98
• Retrospective duties arise under UN Geneva
  Convention 1951, Article 24 equal treatment

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Backdating for refugees

• Amount of asylum support deducted from TC arrears
• NB asylum support for children not always less
  than CTC depends on number and ages of children
• CTC/3692/2008 found this means all asylum support
  including amounts for adults
• Revenue guidance states refugee integration loan
  also deducted no legal basis for this
• EC Directive 2004/83 based on the full and
  inclusive application of the UN Convention -
  Article 28 refugees shall receive the necessary
  social assistance as provided to nationals of the
  member state

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Presence Residence tests EEA nationals

• Present
• Ordinarily resident
• Right to reside is required for CTC only
• Temporary absence

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Partner/children in another EEA member state

• EEC Reg 1408/71 Article 73 An employed or
  self-employed person subject to the legislation
  of a member state shall be entitled, in respect
  of the members of his family who are residing in
  another member state, to the family benefits
  provided for by the legislation of the former
  state, as if they were residing in that state.
• WTC/FS5 Make a joint claim with your partner
  and include the childrens details on the claim
  if you are responsible for a child or children
  who are living with your partner in another EEA
  country or Switzerland and you are either
• working in the UK and paying UK NI contributions
  or
• receiving contribution-based JSA.

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Partner/children in another EEA member state

• Other insured persons (eg on ESA) covered by
  EEC Reg 1408/71, partner and children in another
  EEA state
• Joint claim
• Partner in another EEA state no children
• Claim WTC as single person
• Dependent children in another EEA state no
  partner
• Include children on claim
• No overlapping benefits payable in other member
  state

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Right to reside

• Only required for CTC
• Treated as not present temporary absence?
• Requirement to report loss of R2R
• Not required for WTC, but if have it,
  automatically treated as ordinarily resident

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NINO requirements

• Who is exempt from the NINO requirement?
• Couple where one partner is an asylum
  seeker/overstayer or in the UK illegally
• Who is not exempt from the NINO requirement?
• EEA nationals
• People with leave to enter on condition of no
  recourse to public funds
• People with a maintenance undertaking given by
  another person
• Reasonable excuse?

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Couples one member is PSIC

• Who does not get the couple element?
• Couple without children where one is an asylum
  seeker, overstayer or in UK illegally.
• Who does get the couple element?
• Couple with children where one is an asylum
  seeker, overstayer or in UK illegally
• Couple without children where one has leave to
  enter with no recourse to public funds
• EEA nationals with children where partner is not
  in UK

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CPAG in Scotland

• Advice line for advisers
• Monday - Thursday
• 10.00 - 12.00
• 0141 552 0552
• Email enquiries
• advice_at_cpagscotland.org.uk

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