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Tax Credits If You Move to UK

What happens about tax credits if you move to the United Kingdom? This section explains tax credit procedures if you settle in the UK from another country.

Changes as a Result of the Referendum?

Note: There will be no change to the rights and status of EU citizens living in the UK until after 2021. You and your family can now apply for ‘settled status‘ to continue living in the UK after June 2021.

If you do not have a job there are conditions to meet before you can claim Child Tax Credit if you moved to the UK on or after the 1st of July 2014.

First of all you must live in the United Kingdom for 3 months. However, this rule does not apply if you:

  • Are a family member of someone who works in the UK or is self-employed.
  • Are Croatian with a certificate to work (or the family member of someone who has one).
  • Here and classed as a refugee.
  • Have been granted:
    • Discretionary leave to enter or stay in the UK and you can get benefits.
    • Humanitarian protection.
  • Have authorised leave to stay:
    • As a displaced person and you can get benefits.
    • If you applied for settlement as a victim of domestic violence.
  • Were made redundant in the UK (or your family member was) and you are now looking for a job or in training.
  • Were working in the UK before but you cannot work at the moment 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.
    • Were in the UK for at least 3 months before moving.
  • Paid Class 1 or Class 2 National Insurance contributions while you were working abroad (and paid these in the 3 month period before returning to the UK).


Tax Credits Cross Border

What happens about tax credits for cross-border workers? In some cases those who travel regularly across the border may be eligible for tax credits. This includes those who:

  • Travel from another country to work in the United Kingdom.
  • Travel from the United Kingdom to work abroad in another country.
Working Tax Credit

You may also qualify for Working Tax Credit if you live in:

  • A European Economic Area country (including Switzerland) and work in the United Kingdom.
  • The United Kingdom and work in Switzerland or a European Economic Area country.
Child Tax Credit

In most cases you and your partner (if applicable) will usually get Child Tax Credit for your children providing:

  • You are working in the United Kingdom.
  • You pay National Insurance in the UK as a worker.
  • Your child lives in Switzerland or in an EEA country.
  • Your child is living with your partner or someone else and the child depends on you to support them.

As a rule you cannot claim Child Tax Credit for children who live outside the EEA or Switzerland. But there is an exception if your partner is a Crown servant posted overseas.

Childcare costs

The childcare element of Working Tax Credit may provide help with childcare costs. To qualify for the payments your children must either be in:

  • Registered or approved childcare in the United Kingdom.
  • Childcare approved by a Ministry of Defence accreditation scheme abroad (for a Crown servant posted abroad).


Tax Credits Immigration Control

If you are ‘subject to immigration control’ it is unlikely that you can get tax credits. However there are some exceptions to this rule and you still need to meet other criteria. The main qualifying rule includes working the relevant number of hours.

Your passport may get stamped when you arrive in the United Kingdom at border control. The passport stamp shows any relevant conditions of your stay in the UK. An example could be ‘no recourse to public funds’. The term ‘public funds’ refers to tax credits and the entitlement to benefits.


Some Exceptions

In some cases you may qualify for tax credits if:

  • Your partner lives in the UK and they are not subject to immigration control.
  • One of these five situations apply to you or your partner.

1. You Have Permission to Stay in the UK (because someone else supports you)

You might get tax credits if someone else is responsible for your maintenance while you stay in the United Kingdom. That means the person supporting you must pay for your upkeep and provide you with a place to live. This person is often a friend, a relative, or your employer. Technically, they get called your ‘sponsor‘.

In this case all of these must apply to you:

  • Your sponsor has given the Home Office a written statement stating that they are sponsoring you.
  • Your sponsor has permission to stay in the United Kingdom.
  • You have lived permanently in the UK for at least 5 years; this can be since you came into the UK or since you started getting sponsored (whichever date is later).

Those who have been living in the UK for fewer than 5 years might be able to get tax credits if:

  • Their sponsor has died.
  • All their sponsors have died (where there were more than one).

2. You are from Algeria, San Marino, Morocco, or Tunisia

In these cases you cannot get Working Tax Credit. You may qualify for Child Tax Credit if you are working in the UK or the reason you are not working is because:

  • You have retired.
  • You are pregnant or looking after children.
  • You are sick, disabled, or your partner has died.

3. You are from Turkey

If you are a Turkish national and lawfully present in the UK you may be able to get Working Tax Credit. You may also qualify for Child Tax Credit if you are working in the UK or the reason you are not working is because:

  • You have retired.
  • You are pregnant or looking after children.
  • You are sick, disabled, or your partner has died.

4. You are from Macedonia

If you are a national of Macedonia and lawfully present in the UK you may be able to get Working Tax Credit. But, you are unlikely to get Child Tax Credit. An exception applies if you have been receiving payments for your children through income-related Jobseeker’s Allowance or Income Support.

5. You Claimed Asylum Before 5th February 2006

You may still get Child Tax Credit if you claimed asylum in the UK before the 5th of February 2006. In this case you might have received financial support for your children through income-based Jobseeker’s Allowance or Income Support.


Tax Credits if You Move to the United Kingdom