tax credits for couple where one is living abroad

[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.

[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.

[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.

[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.

[unclebulgaria67]

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.

 

The point being raised is where is the money coming from to build the house abroad ? It is not our business, however, one of the questions on any benefit claim is access to money or assets in the UK or outside of the UK. Onviously you will realise the consequences of not answering any questions accurately, but there are many people out there, who might not consider this or be bothered, as they might think UK Government would not find out about money or assets abroad.

[unclebulgaria67]

To clarify they ask about all money/assets UK and abroad to assess income. If someone has property assets abroad, then the question is whether they have other sources of income.

[unclebulgaria67]

Thanks. Will have a look at that, as I thought there was something related to assets which were not the main UK family home. There was an assumed income or some affect on any UK benefit claim.

 

It does seem odd that soneone owning say several UK properties where no income was gained from ownership could claim tax credits, as an example.

[unclebulgaria67]

Having just checked a site which covers tax credits, it is onlly income/profits that is derived from owning any second properties that would affect a tax credit claim. So if the foreign house was let out, then any income generated would be disclosed as foreign income.