Who can claim tax credits?
There are some basic conditions that you need to meet to qualify for both Working Tax Credit (WTC) and Child Tax Credit (CTC). These are age, residency and immigration conditions.
- You have to be aged at least 16 years old (although some people will need to be older to claim WTC).
- You must be ‘in the UK’. For WTC this means you must be present and ordinarily resident in the UK. For CTC you must be present, ordinarily resident and have a right to reside. There are some exceptions to these basic rules if you live in another EU country. You can find out more about the residence conditions on the GOV.UK website .
- You must not be subject to immigration control, but see below for some exceptions to that rule.
If you are married or in a civil partnership, then both you and your partner must claim together in a joint claim, even if you are temporarily living apart. You must also make a joint claim if you are living with someone as if you were married or civil partners. You are jointly responsible for the claim.
If you do not have a partner or spouse and are not living with someone as if you are married or in a civil partnership, then you can make a single claim.
If you are married or in a civil partnership, you can only make a single claim if you are legally separated or separated in circumstances that are likely to become permanent.
If you make a single claim, HMRC (or a private company working for HMRC) may investigate your claim. If they have any evidence from their systems or from a credit reference agency that suggests another person is using your address or there are financial links with another person then they may write to you asking for information from you because they think you are living with another person. You can find out more about these investigations on our Revenuebenefits website for advisers.
It is important that you make the correct claim or if you have already made a claim, it is important you tell HMRC if your relationship circumstances change, otherwise you may be left with a large overpayment. See our repaying an overpayment debt section for more information about repaying overpayments due to relationship changes.
From 1 July 2014, a new rule was introduced for child tax credit but it does not apply to claims made (or treated as made) prior to that date. If you do not have a job, then to meet the basic condition of ‘being in the UK’, you must have been living in the UK for a consecutive period of three months in the period immediately before you claim. The 3-month rule does not apply if you:
- are a family member of someone who works or is self-employed
- are Croatian and have a certificate to work, or are the family member of someone who has one
- are a refugee
- have been granted discretionary leave to enter or stay in the UK and you can get benefits
- have been given leave to stay as a displaced person and you can get benefits
- have been given to leave to stay and have applied for settlement as a victim of domestic violence
- have been granted humanitarian protection
- were made redundant in the UK (or your family member was) and you are looking for a job or in training
- were working in the UK before but temporarily cannot work because of your health or an accident
- have been abroad for less than a year but usually live in the UK and were claiming Child Tax Credits before moving
- have been abroad for less than a year but usually live in the UK and were in the UK for at least three months before moving
- paid Class 1 or Class 2 National Insurance contributions while you were working abroad, and paid these in the three month period before returning to the UK.
To claim Child Tax Credit (but not Working Tax Credit) you must have a right to reside in the UK.
You will have a right to reside in the UK if you are a national of UK, Republic of Ireland, the Channel Islands or the Isle of Man.
If you are from another EEA country or Switzerland, you will have a right to reside if you are:
To have a right to reside as a self-employed person, your work needs to be genuine and effective. To show your work is genuine and effective you will have to show that for the last three months you have been earning at least £156 a week. An EEA migrant who has some earnings but not enough to satisfy this minimum earnings threshold will have further checks carried out to see if the work is genuine and effective.
You also need comprehensive medical insurance for yourself and your family if you are not working or looking for work (eg, you are studying or able to support yourself).
You need a
certificate to work in the UK if you are from Croatia
You can find further information on the GOV.UK website and on our website for advisers about right to reside
If you live outside the UK, you usually cannot claim tax credits.
If you live in another European Economic Area (EEA) country but you are still liable to pay (and actually pay) UK National Insurance contributions (for instance you live in Republic of Ireland but work in Northern Ireland), you may still be able to claim CTC if you are responsible for at least one child. HMRC will check with the authorities of the EEA country that you live in whether you are claiming any family benefits from them and may reduce the amount of CTC payable if the other EU country is also responsible for paying you.
If you are married or in a civil partnership with someone who lives outside the UK and not in another EEA country, you should make a single claim. If they live outside of the UK but in another EEA country, you should contact HMRC before claiming to check with them whether to make a joint or single claim.
You can find further information on the GOV.UK website about claiming if you or your partner live outside of the UK.
Normally, you need to be present in the UK to claim tax credits. But if you (or your partner) go abroad for up to eight weeks at a time, HMRC will treat you as if you were still in the UK, providing you intend your visit abroad to be temporary. Temporary means you expect it to last less than 52 weeks.
The eight-week period can be extended to a maximum of 12 weeks if you are ill or your trip is in connection with ill health or the death of a relative.
After the temporary absence period, you will not be treated as being in the UK. This means that if you are part of a couple, you will need to end your joint claim and the partner who remains in the UK will need to make a new single claim. If the 8-week/12-week rule applies, you will need to wait until after that period ends before your partner can claim as a single person; this means that they may not qualify for any childcare support during those 8/12 weeks. Once they make a claim as a single person, only their income will be taken into account; any income from the partner who is abroad will be ignored.
However, when the partner who is abroad returns to the UK, the single claim must end and a new joint claim made. This can create numerous problems for people who work abroad for long periods as it can mean switching claims several times a year.
If you are not a national of the UK or another European country, you usually need permission to enter and stay in the UK. This means you are likely to be subject to immigration control. You cannot usually claim tax credits if you are subject to immigration control, but there are some exceptions to this.
When you arrived in the UK, your passport will have been stamped to show your status. If you are subject to immigration control, it may say ‘no recourse to public funds’. If you are unsure of your status, you should contact UK Visas and Immigration .
You will not be subject to immigration control if:
- you are a UK national
- you are a national of an EEA country or Switzerland
- you are a national of the Republic of Ireland, Channel Islands or Isle of Man
- you have refugee status (after seeking asylum)
- you have been told you by the Home Office that you are allowed to stay in the UK indefinitely.
Even if you are subject to immigration control, you may still be able to claim tax credits if you have a partner in the UK who is not subject to immigration control or is subject to immigration control but covered by one of the other exceptions. In this case you must make a joint claim but you may not be able to get the second adult element included in your claim.
There are also other exceptions to the immigration rule for other groups such as:
- those who have permission to stay in the UK with a sponsor
- nationals of certain countries (Algeria, Morocco, San Marino, Tunisia, Croatia, Republic of Macedonia, Turkey) if certain conditions are met
- people claiming CTC who receive financial support through certain DWP benefits and claimed asylum before 5 February 2006
- people granted the 'destitute domestic violence' concession from the Home Office – where this is granted, the no recourse to public funds restriction is lifted.
You can find more detail about each of these exceptions on the GOV.UK website .
This section of the site gives a brief overview of the basic conditions for claiming tax credits. For more detailed information, visit the following pages on our website for advisers :Source: www.taxguideforstudents.org.uk