View Full Version : working families tax credit
Kett
7th September 2009, 23:28
Can anyone confirm whether the working families tax credit and/or child tax credit are for all working families, or just for UK (+ EU) ones?
I have friends from Papua New Guinea, working here on legitimate visas, but struggling to cope.
They have not applied thinking they would not be eligible for benefits.
But I understand this to be a tax credit rather than a benefit and they do pay tax.
On searching through google, I cannot find any exemptions to do with nationality.
But am I missing something here?
yorkshirejames
8th September 2009, 07:28
I don't know is the honest answer, but I would agree with your logic that it is for everyone who is a taxpayer. http://www.hmrc.gov.uk/taxcredits/index.htm In one of the example scenarios on there they use foreign-sounding names, which I guess is done to reinforce that these credits are available to all.
Tom McClelland
8th September 2009, 07:30
http://www.hmrc.gov.uk/taxcredits/start/who-qualifies/new-arrivals-intro/index.htm
Tom McClelland
8th September 2009, 07:39
The really curious thing about it is that you don't actually have to pay tax to be entitled to the credit. You just have to be in work. The name of the benefit is a sham. It used to be administered through the employer's PAYE system, but it doesn't even have that figleaf any more.
It was important politically for Gordon Brown when he introduced it to be considered a tax credit because naming it as one makes UK taxes and government spending seem lower than they actually are.
RAL
8th September 2009, 08:24
Claimants must usally be in the uk and an individual who is not ordinarly resident in the uk is treated as not being in the uk.
For the purpose of working tax credit, a person shall be treated as being ordinarily resident if he is exercising in the UK his rights as a worker pursuant to Council Regulation (EEC) No 1612/68 as amended by Council Directive No 2004/34/EC, or Commision Regulation (EEC) No 1251/70 or he is a person with a right to reside in the UK pursuant to Council Directive No 2004/38/EC.
So you need to check his working permits or visa. The person may be entitled to working family tax credit.
Kett
9th September 2009, 17:04
Just to thank everyone and say that the wife rang up the help line and after declaring everything was awarded £20 per week. £10 for each husband and wife.
It will make life a lot easier for them. Pity they did not know about it before.
If they had unlimited residency status it would have been more, rather than residency linked to the job. But it is indeed welcomed.