Why don't expat UK tax payers with children get Family Tax Credit.?

Question

We pay as much tax as everyone but we cost the country nothing for police, health, education etc. Why should our children not have the same benefits from the country their parents pay tax to?

UK tax is due on income arising in the UK regardless of where the tax payer lives. I don't expect to avoid the tax so I accept that. I just think that paying the same tax deserves the same relief. This is not a National Insurance question. Either resident or not income does not necesserily incur National Insurance. This is not an issue which an accountant could do anything at all about, it is the law regarding income arising in the UK.

gvih2v2. Either about UK resident or Expat you can assume either that people do declare all their tax or they don't. What work I do is on the internet so I don't need to be in England to do it and has the same liability to NI here or there, none in either place, but Tax Credit is based on Tax Paid, not on NI so in the UK I would get it and here I don't. Benefits that would be available because of NI are not available to me as an expat anyway but this is an issue about Tax, not NI. And no, I am not 'doing the expat thing'. All my income arises in the UK and is declared on my Tax Return.

KarenS - I am not disputing the legality of it, I am objecting to the unfairness of it. The same rule for everyone who pays tax, regardless of where they live and how much they get from it, but different rules about who can have relief and credit, particularly unfair when applied to support to British Citizens supporting children.

Could the fact that expats are not voters have anything to do with it?

Bootleg, Who said I paid tax abroad? I said all my income arises and is taxed in the UK. Tax isn't about patriotism, it is a business arrangement to fairly distribute the cost of running the country and there is nothing at all fair about scrapping child allowance which was available to all but then replacing it with taxation which leaves children of some British Tax Paying Citizens with less support than others on the same income.

Answer 1

I agree it's unfair. I suppose the answer is that Family Tax Credit is seen as part of the "social welfare" system, which tends to be based on residence - that's why you only pay Social Security (National Insurance) where you live, not where you work or are "ordinarily resident".

Be honest, though, do you really pay "as much tax as everyone else" to the UK? If so, you're probably not doing the expat thing right!

>> Graham, I wasn't talking about failling to declare anything either. It's an interesting position you're in, and one where the tax laws probably haven't caught up with new technology.

I used to live in Holland but work in Germany. I paid income tax in Germany on income from my job; NI in Holland; and tax in the UK only on income from investments (eg my house which was rented out). I would have assumed that you would have some tax liability in your country of residence (which you could then offset under dual tax relief), but it's almost as if you were a cross-border worker from that country "working in" the UK. Very interesting question!

As I say, although tax credits are (as their name implies) part of the tax system, my guess is that the regulation which governs them is the same as for social welfare benefits, because that's the way the government intended them to work. Typical of Mr Brown's love of confusing complexity!

The confusion at government level would seem to be supported by the fact they were amended in an instrument called "The Social Security (Working Tax Credit and Child Tax Credit) Regulations 2003".

I note from the original legislation that "a claim for tax credit may be made:
(a) jointly by the members of a married couple or unmarried couple both of whom are aged at least sixteen and are in the United Kingdom, or
(b) by a person who is aged at least sixteen and is in the United Kingdom but is not entitled to make a claim under paragraph (a) (jointly with another)."

It's that phrase "IN the United Kingdom" that gets you. Sorry.

Answer 2

that sounds highly unfair but completely typical of the money grabbing, useless UK government. they take as much as they can from us and if at all possible they will give nothing back.
i agree with you completely, that as a UK tax payer, regardless of where in the world you are, your children should be entitled to the same benefits as those residing in the UK. but then again, are they really benefits? i have had no end of trouble with tax credits for the past 18 months and really wish i had never bothered applying because its a stress that i could do without.
write a letter to the government asking them why they see fit to exclude you from credits that will benefit you but they can still debit you to benefit them. see what excuse (if any) they come up with!

Answer 3

Tax credit is based on working contributions. If you are not working in the uk where you are paid a salary you are not entitled to it no matter if you pay tax or not. If you feel it is wrong speak to them but just paying tax doesnt give you the right to an award if you have children.

Answer 4

I assume you knew the situation when you decided to leave this country so why are you complaining now. While to you it might seem unfair, what of the pensioners who have paid into the system for all of their working life and witness what savings they had be whittled down year after year. They had no fore-knowledge of where they would stand financially they just took the governments word.

Answer 5

If you are overseas and still paying full tax - change your accountant. The Tax depts of many countries have reciprocal arragments too, in which casde you can pay your taxes in your host nation and get all the same advantages as their locals citizens.

Answer 6

if you pay tax in the u.k you can get it as long as you are not over the amount stated but you need to explain the question better

Answer 7

where do you live mate? if you live in UK you get full benefit, You can't be that patriotic if you are living abroad and paying tax abroad.

Answer 8

Do you pay National Insurance stamp, at full rate?

Answer 9

i'm confused, you dont live in the country yet to have to pay tax for this country? so do you pay tax in the country you live in as well?