British expats face tax credits ban as Cameron seeks EU compromise

[Ernest]

As if such a minor thing is going to change anything , unless Cameron proposes to stop free movement he is wasting his time, simply say the EC is as it is and promote the virtues and get on and hold the vote

 

[crookie]

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]

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]

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?

 

[Kalimantan Gull]

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.

But in this case, the Polish guy in the UK is paying his taxes to the British Government, so why shouldn't he benefit from tax credits?

 

[KZNSeagull]

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]

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]

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]

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]

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]

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.

 

[BensGrandad]

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

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.

 

[Herr Tubthumper]

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]

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!!!!!!!!

 

[swindonseagull]

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

Pay tax to HMRC nothing to host country. ( 10 years experience)

 

[Herr Tubthumper]

Pay tax to HMRC nothing to host country. ( 10 years experience)

As a serviceman?