HMRC say they will make a judgement on whether the claimant ceased to be living in the UK during their absence and apply a common sense approach, including looking at the reason for the departure and the length of absence. The rule applies to all claims for child tax credit, but there are specific exceptions set out below.
Presence and temporary absences. This general requirement is subject to three important exceptions. The first involves those who are temporarily absent from the UK. Providing a claimant is ordinarily resident and remains so throughout the absence, they will be treated as present and thus in the UK during the first 8 weeks of any absence.
This is extended to 12 weeks where the absence is in connection with:. Any absence must be temporary from the start. It must also be unlikely to last more than 52 weeks. If the absence is expected to last for longer, the person ceases to be treated as in the UK from the date they leave.
TCTM states that the question of whether the absence is unlikely to exceed 52 weeks need only be considered once, at the beginning of the absence. The second exception is for Crown Servants who are posted overseas. For the purposes of the tax credit legislation, a Crown Servant posted overseas is a person performing the duties of any office or employment under the Crown in Right of the United Kingdom. The Crown Servant must be ordinarily resident in the UK or must have been immediately before the posting or the first of consecutive postings.
Alternatively, immediately before the posting, or the first of consecutive postings, they were in the UK in connection with that posting. This alternative requirement is of particular help to members of the armed forces who may be posted abroad too quickly to enable them to establish ordinary residence before they leave.
Partners of Crown Servants are also covered by this exception. There is no requirement for such partners to be ordinarily resident in the UK. However, regulations require them to be either present in the UK or accompanying the Crown Servant on their posting. The rules on temporary absence also apply to partners of Crown Servants, allowing absence from the UK itself or from the place where the Crown Servant is posted.
For members of the armed forces who are deployed on operations away from an overseas base, the TCTM confirms that:. In such cases, entitlement is governed by EU law which overrides UK domestic law. The usual residency rules apply to seafarers and offshore workers.
The UK includes its territorial waters and therefore someone working within those waters will continue to be in the UK for tax credit purposes.
If they are outside of those waters, including the continental shelf, they will no longer be treated as in the UK. The temporary absence rules apply to seafarers and offshore workers, and if the absence is less than 8 weeks, they continue to be in the UK for tax credit purposes. As with any other incidence of temporary absence, if the period away is in excess of 8 weeks, they must notify HMRC who will end their claim.
If they were claiming jointly, their partner can then claim as a single person with only their income taken into account until such time as the worker returns. At this point, another notification is needed to HMRC to end the single claim and start a new joint claim.
In practice this leads to a complicated claim history, particular at renewal time when renewal papers will need to be completed for each separate claim. There is no further definition of ordinary residence in the legislation. Despite the same term being used in the tax system, national insurance and child benefit, HMRC guidance asserts that the definition for tax credits is different.
HMRC guidance states that:. The guidance TCTM goes on to give a great deal of information on the factors that HMRC will consider when determining if someone is ordinarily resident. This can be invaluable for advisers who need to argue against any decisions on this ground. It is clear that decisions should be made based on the facts and evidence available at the time of the decision and that a decision should not be amended retrospectively if a person ended up spending more or less time in the UK than was reasonably expected at the time of the original decision.
As with the requirement to be present in the UK, there are some exceptions. The regulations provide that people who are in the UK as a result of deportation, expulsion or other removal by compulsion of law from another country shall be treated as ordinarily resident in the UK.
Further details can be found in regulation 7 of the residence regulations. Although the requirement applies only to CTC, a WTC claimant who is a national of an EEA country and who is not exercising their rights as a worker under EU law, will not be treated as being ordinarily resident unless there is right to reside.
They are:. This bullet point list is a very brief outline of people who may have a right to reside in the UK. Given that this is a highly specialist area, more aptly covered by residency and immigration experts, we recommend that advisers consult the relevant chapters in the HMRC manual TCTM onwards for fuller detail of each of the bullet points.
From July onwards, closer scrutiny applies to the question of whether an EEA national can be defined as a worker or self-employed person for the purpose of establishing their right to reside. To check whether this test is met the individual must earn a minimum amount from the work. In cases where the person does not meet that income threshold, HMRC will consider their full circumstances including whether their right to reside may be established under other criteria as in the above list.
The following groups only have a right to reside in the UK if they have sufficient resources not to become a burden on the social assistance system of the UK, that is, they are self-sufficient:. You should check if you can get Pension Credit.
You can use the tax credits disability helpsheet on GOV. Tax credits can have a knock-on effect on other benefits you claim. This means claiming tax credits might leave you worse off. If you'd rather speak to someone in person, contact your nearest Citizens Advice. An adviser can help you work out if claiming tax credits would leave you better off.
Contact your nearest Citizens Advice before you apply. If none of these apply to you, you might be able to make a late application to the EU Settlement Scheme.
Your client might be exempt - for example, if they were the victim of trafficking. You can check if your client is exempt from the right to reside and habitual residence test. Find out more about staying in the UK if you're from the EU.
The amount you could get in tax credits depends on your income as well other factors such as whether you have children. To get an estimate, use the the tax credits calculator on GOV. You can still apply if your income is slightly too high to be eligible for tax credits.
If your income goes down later in the year, your tax credit claim can be backdated to when you made your claim. This is because tax credit amounts are worked out across a full year. Use the number of hours you normally work instead. For example if you're on a zero hours contract, but usually work 30 hours a week, tell HMRC you work around 30 hours.
You need to tell HMRC if your regular hours change , as this might mean you don't qualify for tax credits any more. If HMRC ask for proof of the hours you work, you can send payslips or a letter from your employer. If the number of hours you work from week to week are predictable, HMRC call this a 'normal working pattern', even if your hours are different each week.
You can give HMRC your average weekly hours over whatever period your normal working pattern is. For example, if it's common for you to work 20 hours and 40 hours on alternate weeks, you could put your normal working hours as 30 hours per week. When you claim federal tax credits and deductions on your tax return, you can change the amount of tax you owe.
Find credits and deductions for businesses. You can claim credits and deductions when you file your tax return. How Credits and Deductions Work When you claim federal tax credits and deductions on your tax return, you can change the amount of tax you owe.
Deductions can reduce the amount of your income before you calculate the tax you owe. Credits can reduce the amount of tax you owe or increase your tax refund, and some credits may give you a refund even if you don't owe any tax. Business Credits and Deductions Find credits and deductions for businesses.
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