Previously, Richard could claim working tax credit and his claim would be treated as made from July the start date of his PIP award.
This is because Richard needs the PIP award in order to qualify for the disability element and establish entitlement for working tax credit by working at least 16 hours. Otherwise he would need to work 30 hours to qualify.
However, Richard is not able to make a claim for working tax credit because he doesn't fall into any of the exceptions listed above. He can claim UC but will not receive backdating like he would have done under tax credits. Members of a couple must make a joint claim with their partner.
Although this may appear a straightforward and sensible requirement, it is one of the more complicated and problematic parts of the tax credits system. You can read more about the detailed requirements in our Understanding Couples section of the site.
Tax credits may be claimed by persons who are in the United Kingdom. This basic rule is subject to some exceptions which are explained below. The residence rules for child tax credit changed from 1 July , when the 3-month rule was introduced. HMRC's technical manual TCTM gives some insight and examples as to how they treat occasional days outside of the UK in that period and whether it will disrupt someone being classed as living here if they returned to their home country for a weekend.
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. Accept additional cookies Reject additional cookies View cookies.
Hide this message. Home Benefits Manage an existing benefit, payment or claim. Working Tax Credit. Hours you work You must work a certain number of hours a week to qualify. Print entire guide. Brexit Check what you need to do. Explore the topic Manage an existing benefit, payment or claim Financial help if you have children Tax credits.
Is this page useful? Maybe Yes this page is useful No this page is not useful. It is important that you make the correct claim, or if you have a claim already 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 , 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. To claim child tax credit but not working tax credit you must have a right to reside in the UK. Further information on the right to reside rules is available on the GOV.
UK website. If you live outside the UK, you usually cannot claim tax credits. However, there are some exceptions, for example if you live outside of the UK and you are a Crown servant posted overseas or the partner of a Crown servant posted overseas you may be able to claim tax credits.
See the GOV. UK website for more information. If you are married or in a civil partnership with someone who lives outside the UK you should make a single claim. If they live outside of the UK but in an EU 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 are 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. Once they make a claim as a single person, only their income will be taken into account, any income from the partner overseas will be ignored. However, when the overseas partner returns to the UK, the single claim must end and a new joint claim made.
This can create numerous problems for people who work overseas for long periods as it can mean switching claims several times a year. If you are not a national of the UK or other 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 unsure of your status, you should contact the UK Visas and Immigration.
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. You can find more detail about each of these exceptions on the GOV.
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:. Skip to main content.
Who can claim tax credits? Updated on 2 July Tax credits and benefits. New claims for tax credits Universal credit UC is replacing tax credits. What are the main conditions for claiming tax credits? You have to be aged at least 16 years old although some people will need to be older to claim WTC. For child tax credit you must be present, ordinarily resident and have a right to reside.
You can find out more about the residence conditions on the GOV. You must not be subject to immigration control, but there are some exceptions to that rule. Do I make a joint claim or single claim? What is the 3-month rule? The 3-month rule does not apply if you: are a worker or self-employed person in the UK retain the status of a worker or self-employed person in the UK have been temporarily absent from the UK for a period not exceeding 8 or 12 weeks have been temporarily absent from the UK for less than 52 weeks and had been ordinarily resident in the UK for a period of at least 3 months prior to that absence Have been temporarily absent from the UK for less than 52 weeks and were receiving child benefit before you went abroad return to the UK after being abroad and have continued to pay Class 1 or 2 National Insurance contributions during your absence allowing for a break of up to three months prior to the absence have UK refugee status have been granted leave to remain in the UK with recourse to public funds, including restricted leave to remain pending an application under the domestic violence concession or humanitarian protection.
Right to Reside To claim child tax credit but not working tax credit you must have a right to reside in the UK. Can I claim if I live abroad? What happens if I leave the UK for a short amount of time?
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