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British expats face tax credits ban as Cameron seeks EU compromise







crookie

Well-known member
Jun 14, 2013
3,313
Back in Sussex
Good post. These policies should never have been introduced in the first place.

True, the elephant in the room is the fact that successive Governments haven't built enough homes, stoking up house price bubbles to make us feel wealthy, the consequence being, in large parts of the country, working families need tax credits/housing benefit to be able to afford their rent/mortgage as the cost of housing has spiralled out of all proportion to the average wage that people earn. If house prices/rent were 50% cheaper, no one would need tax credits/housing benefit at all if they worked
 


Hastings gull

Well-known member
Nov 23, 2013
4,635
Not necessarily true. Crown pensions like Armed Forces and Civil Service can only be taxed in the UK no matter where you live, so anyone retiring overseas with a crown pension is still paying all of their income tax to HMRC.

I was in this situation and paid all my taxes to the UK, so anyone in this category would not be an expat in the traditional sense that they were working for a foreign firm abroad.
 


Seagull1989

Well-known member
Oct 31, 2011
1,198
I currently live in Germany but until next April will be paying tax in the UK. After that I believe I'll pay it in Germany.
So am I correct in my understanding that if I stay in Germany for 5 years then return to the UK I will not be entitled to tax credits etc? Regardless of how much tax I paid before I left?
 






KZNSeagull

Well-known member
Nov 26, 2007
19,878
Wolsingham, County Durham
I currently live in Germany but until next April will be paying tax in the UK. After that I believe I'll pay it in Germany.
So am I correct in my understanding that if I stay in Germany for 5 years then return to the UK I will not be entitled to tax credits etc? Regardless of how much tax I paid before I left?

That's how I interpret it, yes. I have been out of the UK for 12 years, but paid tax for 18 years before that in the UK. I would not be entitled to tax credits for 4 years when I return to the UK under these rules. I do not particularly have a problem with that as it stands, but may of course change my mind once I return to the UK!
 


Herr Tubthumper

Well-known member
NSC Patron
Jul 11, 2003
59,754
The Fatherland
Not necessarily true. Crown pensions like Armed Forces and Civil Service can only be taxed in the UK no matter where you live, so anyone retiring overseas with a crown pension is still paying all of their income tax to HMRC.

Correct. And this applies to all income taxed at source and not just crown pensions. I can't speak for all countries but in Germany if you live here for 6 months and a day you pay tax here period. And this tax is on world wide earnings. Whilst the pension you mention will be taxed at source, ie in the UK, it will need to be declared to the Germans as income. The UK tax will then be used as a credit against the local German tax bill. https://en.m.wikipedia.org/wiki/Double_taxation. I think the Germans actually claim the UK tax for themselves behind the scenes.

This is my understanding anyway.
 


BensGrandad

New member
Jul 13, 2003
72,015
Haywards Heath
I believe that all benefits to expats living abroad should be abolished and the only payment made is State Pension if entitled every thing else like heating allowance, tax credits etc should only be paid to any body living 185 days in the UK so therefore classed as resident and subject to UK tax laws
 




Herr Tubthumper

Well-known member
NSC Patron
Jul 11, 2003
59,754
The Fatherland
I currently live in Germany but until next April will be paying tax in the UK. After that I believe I'll pay it in Germany.
So am I correct in my understanding that if I stay in Germany for 5 years then return to the UK I will not be entitled to tax credits etc? Regardless of how much tax I paid before I left?

If Cameron's proposal comes to fruition then yes.
 


BensGrandad

New member
Jul 13, 2003
72,015
Haywards Heath
Surely if a person choose to work and live abroad and not pay tax to HMRC why should they be able to get the tax credits etc. If as in servicemen somebody works abroad and pays tax to HMRC then they shouldnt be classed as Expat and this wouldnt apply. Is this not a way of saying a Moldovan or similar coming to the UK couldnt get tax credit for 4 years?
 


Herr Tubthumper

Well-known member
NSC Patron
Jul 11, 2003
59,754
The Fatherland
If as in servicemen somebody works abroad and pays tax to HMRC then they shouldnt be classed as Expat and this wouldnt apply.

I'm guessing but I presume servicemen stationed at a foreign base are not the same as regular folk who move to another country.
 






Herr Tubthumper

Well-known member
NSC Patron
Jul 11, 2003
59,754
The Fatherland
It should emphasised BY ChOICE. if it was for work t and they were sent to complete a contract they would still pay tax in the UK.

I'm not quite following you I'm afraid.
 


topbanana36

Well-known member
Dec 29, 2007
1,753
New Zealand
Cameron is a fraud. The EU is an outdated and undemocratic organisation which for the good of real British people should be consigned to the dustbin of history. And no I do not live in New Zealand anymore!!!!!!!!
 






Herr Tubthumper

Well-known member
NSC Patron
Jul 11, 2003
59,754
The Fatherland


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