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British expats face tax credits ban as Cameron seeks EU compromise



Herr Tubthumper

Well-known member
NSC Patreon
Jul 11, 2003
59,198
The Fatherland
What do folk think about this?

"British expatriates could be banned from claiming tax credits for up to four years as part of a compromise deal David Cameron is negotiating with fellow EU leaders, the Guardian understands.
In an attempt to win support for his proposal to ban EU migrants from claiming in-work benefits for four years, the prime minister is looking at whether the ban could apply to Britons who live abroad for four years or more."

http://www.theguardian.com/politics...tend-four-year-tax-credits-ban-british-expats
 








Westdene Seagull

aka Cap'n Carl Firecrotch
NSC Patreon
Oct 27, 2003
20,938
The arse end of Hangleton
What do folk think about this?

"British expatriates could be banned from claiming tax credits for up to four years as part of a compromise deal David Cameron is negotiating with fellow EU leaders, the Guardian understands.
In an attempt to win support for his proposal to ban EU migrants from claiming in-work benefits for four years, the prime minister is looking at whether the ban could apply to Britons who live abroad for four years or more."

http://www.theguardian.com/politics...tend-four-year-tax-credits-ban-british-expats

I guess it depends where you pay your income tax. If 100% of your income tax is paid to HMRC then I can see it being unfair not being able to take advantage of tax credits. If on the other hand your income and tax are split - let's just for example say 50/50 between the UK and Germany - and that lowers your UK income to be able to qualify for tax credits but if you added in the German income you wouldn't then no bloody way should you be able to claim them.

That said it's all a smoke screen as Cameron will get bugger all changes from the EU anyway.
 






Herr Tubthumper

Well-known member
NSC Patreon
Jul 11, 2003
59,198
The Fatherland
I guess it depends where you pay your income tax. If 100% of your income tax is paid to HMRC then I can see it being unfair not being able to take advantage of tax credits. If on the other hand your income and tax are split - let's just for example say 50/50 between the UK and Germany - and that lowers your UK income to be able to qualify for tax credits but if you added in the German income you wouldn't then no bloody way should you be able to claim them.

That said it's all a smoke screen as Cameron will get bugger all changes from the EU anyway.

If you're an expat in the truest sense, ie you live most of the time abroad, you'll only pay tax in the country of residence. So you wouldn't be paying anything to HMRC.
 


Westdene Seagull

aka Cap'n Carl Firecrotch
NSC Patreon
Oct 27, 2003
20,938
The arse end of Hangleton
If you're an expat in the truest sense, ie you live most of the time abroad, you'll only pay tax in the country of residence. So you wouldn't be paying anything to HMRC.

And if that's the case then I agree .... no tax credits.
 












Seagull58

In the Algarve
Jan 31, 2012
7,138
Vilamoura, Portugal
No problem for me but I am not happy with the fact that 1 million foreign workers who are already in the UK will continue to get the tax credits under Cameron's proposal. The change, if it ever happens, should apply to all foreign workers, not just new arrivals.
 




Perfidious Albion

Well-known member
Oct 25, 2011
5,987
At the end of my tether
The article said "could" , so I guess it is not definite. Sounds right to me. As I understand, Tax Credits are based on U K cost of living. If you choose to live elsewhere that may be chaper, it does not apply.
 




happypig

Staring at the rude boys
May 23, 2009
7,935
Eastbourne
I'd rather see employers pay a reasonable wage so that the taxpayer doesn't have to top it up, effectively subsidising the business owner.
Couple that with strict and fair (to the tenant) rent control and maybe tax credits will be unnecessary.
 


Chief Wiggum

New member
Apr 30, 2009
518
'The plan could prove controversial among British workers who take advantage of EU free movement rules to relocate to countries such as Spain, and who would expect to be able to top up low wages through tax credits on their return to Britain'

So, if for example Someone living in the UK, has paid UK tax, social etc for 20 yrs say, then takes a job in an EU country for five years paying their tax in whatever country it is, and then
comes back to the UK finds themselves banned from claiming in work tax credits in their home nation having already paid into the system? Is that my correct interpretation? If so how is that right?

I guess every situation will vary according to circumstances, but to me it seems as if Cameron is clutching at straws and will propose anything to appear to have struck a deal in order to recommend a 'stay in' Europe vote.
 
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rrruss

Wandering Seagull
If you're an expat in the truest sense, ie you live most of the time abroad, you'll only pay tax in the country of residence. So you wouldn't be paying anything to HMRC.

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.
 


beorhthelm

A. Virgo, Football Genius
Jul 21, 2003
35,264
im surprised you can get tax credits when resident abroad in the first place, if you're not here and paying tax here, shouldnt get tax credits. or any benefits, welfare or state payments, pension aside. bloody daft how we've ended up spending on TV licences and winter fuel payments to ex-pats living in the sun. and then we end up with perversions of the system such as foreign workers here claiming child benefit for children in their native country. shirley no one thinks thats a sensible use of welfare budget? meanwhilre we worry about poverty for children here, overlooking how the funds would be better spent if wasnt wasted on the above.
 




yxee

Well-known member
Oct 24, 2011
2,521
Manchester
I'd rather see employers pay a reasonable wage so that the taxpayer doesn't have to top it up, effectively subsidising the business owner.
Couple that with strict and fair (to the tenant) rent control and maybe tax credits will be unnecessary.

Or the capitalist alternative, get rid of tax credits and let the system sort itself out without additional tinkering.
 


Soulman

New member
Oct 22, 2012
10,966
Sompting
im surprised you can get tax credits when resident abroad in the first place, if you're not here and paying tax here, shouldnt get tax credits. or any benefits, welfare or state payments, pension aside. bloody daft how we've ended up spending on TV licences and winter fuel payments to ex-pats living in the sun. and then we end up with perversions of the system such as foreign workers here claiming child benefit for children in their native country. shirley no one thinks thats a sensible use of welfare budget? meanwhilre we worry about poverty for children here, overlooking how the funds would be better spent if wasnt wasted on the above.

Good post. These policies should never have been introduced in the first place.
 



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