tax credits for couple where one is living abroad

[mikehunt69]

Hi,

We are a married couple.

 

We are entitled to tax credits but not universal credit (due to savings).

 

However next week I am going abroad (out of the EU) where we are building a house.

 

We are still a couple but as I understand it with me being out of the country I cannot be on a tax credit claim (even if this would reduce the amount we can claim).

 

I'll probably come back to the UK in September, but that's not yet certain - it could be later but not earlier.

 

Wife will come to see me in August for a month (she works in school so no problem)

 

Apparently UC is being rolled out in our area in late 2018.

 

So is it correct to apply for TCs now (or as soon as I leave in the country) in wife's name? (Money will go into joint account)

 

When I return to the UK then would that be a new TC claim (so potentially going onto UC)? Or just a modification (we'd still be entitled to TCs if I'm here, it doesn't make too much difference to our income)?

[sgtbush]

I'm wondering how your funding all of this AND claiming tax credits.

Tax credits are a benefit for people on LOW income and responsible for children.

[mikehunt69]

we have children + savings. Low income, as interest rates are

[sgtbush]

What is your joint yearly household income from employment?

[mikehunt69]

my wife earns something like £7k,

I earn around £3k from my Ltd company

(which doesn't pay any dividends, as it doesn't turnover much or make much profit - I only get a salary).

 

She works 24 hours a week so I think in joint we would qualify for the 30 hour element, but as a single applicant she obviously doesn't.

 

So in terms of the amount of any award it would be pretty similar in single or joint names.

[sgtbush]

So you earn £56/week and your wife £136/week and you have savings AND your building a house abroad?????

I'm sorry I dont believe your being honest to the DWP.

[mikehunt69]

I'm not sure what part of this is hard to believe.

 

Lots of people inherit money or give up 'the rat race' after being a high earner.

 

I have six+ years of bank statements showing my savings, it's not really hard to verify.

[disgruntled2007]

my wife earns something like £7k, I earn around £3k from my Ltd. company (which doesn't pay any dividends, as it doesn't turnover much or make much profit - I only get a salary). She works 24 hours a week so I think in joint we would qualify for the 30 hour element, but as a single applicant she obviously doesn't.

 

So in terms of the amount of any award it would be pretty similar in single or joint names.

 

How many hours a week do you work for your Ltd Co?

[sgtbush]

What's the name of your limited company, I would like to look you up on company check, download your returns and go through them to see your annual income.

All the details and documents are public knowledge,as seen as your a limited company so you shouldn't have a problem. If your all above board

[ericsbrother]

no capital limit for tax credits As OP isnt paying himself much of a salary and no dividend then all of the money the company makes is capital- simples.

 

When it comes to morals

the big boys like Microsoft and Google play that game,

shovelling all of the money into the Cayman Islands where they cant touch it without risking a massive tax bill.

 

No differnce in how things are applied,

I wouldnt have come here trying to find a way round the law though,

you know what is what so keep the right side of the legislation

[mikehunt69]

What's the name of your limited company, I would like to look you up on company check, download your returns and go through them to see your annual income.

All the details and documents are public knowledge,as seen as your a limited company so you shouldn't have a problem. If your all above board

 

You've obviously not looked at company accounts before.

P&l's are not required to be submitted to Companies House unless your company turns over more than £10.2 million

So nothing to see.

[sgtbush]

Well I think your pulling a fast one .

Building a house abroad but claiming tax credit for low income

[unclebulgaria67]

https://www.gov.uk/working-tax-credit

 

If your circumstances change you must inform HMRC. If you leave the country for an extended period, you may then no longer qualify for WTC.

 

If you returned and UC full service has been rolled where you live in the UK, both you and your wife are likely to have to both move onto UC. It would be a couple claim at your UK address. If you have savings above £16000, you may not qualify anyway for UC, as you have pointed out.

 

I don't think it is possible to have one part of a couple on WTC and their other half on UC. Moving to UC will be complicated because they will check all documentation related to your self employed business. There is assumed income of 35 hours a week on minimum wage. So they might not see your business as viable and look for you seek higher paid income.

 

If you were on WTC before UC full service started, then managed migration by DWP migration will happen between 2019 and 2022. Just make sure you declare 100% accurate info as Government now has access to more centralised info, due better IT systems in place.

[unclebulgaria67]

https://www.gov.uk/tax-credits-if-moving-country-or-travelling/going-abroad-temporarily

 

After 8 weeks outside the UK, any tax credit claim should end. You have to tell them per the conditions attached to your claim and they could check records. If you continued claiming when not entitled, then no doubt you could be investigated and face actions they deem appropriate.

[mikehunt69]

Yes that is correct. We dont have a claim come currently, so this would be a sole claim after I left the country.

 

From what I read,

the normal rules in the case of separation are that a couple temporarily separated cannot be treated as separate claims.

 

However you can't be on a tax credit claim if you are overseas.

 

It seems that the corollary of being ineligible if overseas is that you should be treated as separated immediately.

[honeybee13]

Yes that is correct. We dont have a claim come currently, so this would be a sole claim after I left the country.

 

From what I read, the normal rules in the case of separation are that a couple temporarily separated cannot be treated as separate claims. However you can't be on a tax credit claim if you are overseas.

It seems that the corollary of being ineligible if overseas is that you should be treated as separated immediately.

 

Hello there.

 

Reading your first post, you say that you're still a couple. I'm not sure that counts as temporarily separated.

 

HB

[unclebulgaria67]

Yes that is correct. We dont have a claim come currently, so this would be a sole claim after I left the country.

 

From what I read, the normal rules in the case of separation are that a couple temporarily separated cannot be treated as separate claims. However you can't be on a tax credit claim if you are overseas.

It seems that the corollary of being ineligible if overseas is that you should be treated as separated immediately.

 

Once UC is in your postcode area of the UK, everything is UC based. If a couple separate and one is on a legacy benefit such as WTC, then they would be told to move on to UC. This would be a natural migration causes by a change in circumstances.

 

Another point I should have made earlier. If you inherit property abroad or a sum of money abroad, you should inform any UK Government agency you receive benefit from. Again this is a legal requirement to advise UK government of a change in circumstances and failure to advise in inheritance might lead to serious consequences if found out.

[mikehunt69]

Hello there.

 

Reading your first post, you say that you're still a couple. I'm not sure that counts as temporarily separated.

 

HB

 

The issue here is this:

 

1. based on her income, our children, and her working hours, if I didn't exist, wife would get tax credit award

2. based on our joint income, children, and working hours, we are entitled to a joint tax credit award of a similar amount (not identical probably, but close)

3. if you go outside the UK then your tax credit entitlement will at some point end.

 

According to this document:

 

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/605628/WTC-FS6_0417-internet.pdf

 

"If you’re going abroad permanently but your partner and child or children are staying in the UK, your partner should contact us straightaway"

 

"If you, your partner, your child or children or all of you go abroad temporarily (by temporarily we mean an absence that’s unlikely to last for more than 52 weeks from the date of leaving the UK), you can continue to get tax credits for a short period of time. For up to:

• 8 weeks, whatever the reason for your absence"

 

So the implication is that if I'm going abroad for say 10 months (which is likely to be the case), then I'm 'temporarily' abroad. However the language used is 'continuing' to get tax credits, it doesn't refer to a NEW application.

 

However the actual legislation seems more useful:

 

http://www.legislation.gov.uk/uksi/2003/654/made

 

"(1) A person who is ordinarily resident in the United Kingdom and is temporarily absent from the United Kingdom shall be treated as being in the United Kingdom during the first—

 

(a)8 weeks of any period of absence;

 

(2) A person is temporarily absent from the United Kingdom if at the beginning of the period of absence his absence is unlikely to exceed 52 weeks."

 

So in fact it seems that for the first eight weeks it would have to be a joint application, even if I was already out of the country.

 

Also the entitlement could change again, as my son is doing his GCSEs in May/June and could potentially come to see me after those, and be out of the country for 10 weeks, therefore losing his child benefit AND tax credit entitlement (albeit that the loss only occurs AFTER 8 weeks, so you still get full CB and TCs for 8 weeks - but a bit of a pain administatively).

[sgtbush]

I think you need to tell the DWP your building a house abroad and see what they say.

[Guest]

According to this document:

 

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/605628/WTC-FS6_0417-internet.pdf

 

.

broken link

is here

https://www.gov.uk/government/publications/tax-credits-leaving-the-uk-wtcfs6

[unclebulgaria67]

Here is my take on this. If there is a current entitlement to tax credits or any other benefits not being taken advantage of, then put in an application now

 

Provide all relevant information that they ask for and see what happens.

 

If you live in a postcode area where UC full service has not been started, then when you leave the country you advise of the change of circumstances. When you come back to the UK, you advise your change of circumstances. You will start on old legacy benefits and if you return before UC starts you will stay on legacy benefits until DWP transfer to UC or a further change in circumstances means a change to UC.

 

Keep it simple, provide accurate information and you will get what you are entitled to.

 

Use one of the benefit calculators e.g entitled to, turn2us to check your entitlement. If you are in any doubt, then many of the organisations that deal with benefits have a helpline.

[mikehunt69]

I think you need to tell the DWP your building a house abroad and see what they say.

 

I think you need to stop posting irrelevant stuff tbh. Tax credits are based on income, no regard to capital. Building a house in the UK or anywhere else doesn't have anything to do with that. I think this was an ideological thing by Labour, to give as many people TCs as possible (but that's a digression), as UCs have a capital limit.

[mikehunt69]

Here is my take on this. If there is a current entitlement to tax credits or any other benefits not being taken advantage of, then put in an application now

 

Provide all relevant information that they ask for and see what happens.

 

Yes that does seem the way to go, I do need to figure out about the 8 weeks for my son as well.

[unclebulgaria67]

Yes that does seem the way to go, I do need to figure out about the 8 weeks for my son as well.

 

Do you ? Any claim for benefits is based on the information on the day you submit the application.

 

If there is a change of circumstances later e.g your Son, then you advise about the change at the time.

 

To make the claim easier, suggest it is in your wifes name and any benefits paid into her account. Then when you leave the UK, it might make things easier.

[mikehunt69]

Do you ? Any claim for benefits is based on the information on the day you submit the application.

 

If there is a change of circumstances later e.g your Son, then you advise about the change at the time.

 

To make the claim easier, suggest it is in your wifes name and any benefits paid into her account. Then when you leave the UK, it might make things easier.

 

Yes I mean because I need to book his tickets and if he's abroad over 8 weeks it will complicate things.