www.cpag.org.uk

Tax credits for people from abroad

Mark WillisNAWRA meeting, Edinburgh

4 September 2009

Introduction

• Backdating for refugees

• Presence & Residence tests - EEA nationals

• Partner/children in another EEA member state

• NINO requirements

• Couples – one member is PSIC

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

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

Presence & Residence tests – EEA nationals

• Present

• Ordinarily resident

• Right to reside is required for CTC only

• Temporary absence

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 children’s 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.

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

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

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?

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

CPAG in Scotland

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0141 552 0552

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