British expats face tax credits ban as Cameron seeks EU compromise

[Herr Tubthumper]

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

 

[Hampster Gull]

Seems fair enough

 

[driller]

I am fine with this

 

[yxee]

Fine. No problem.

 

[Westdene Seagull]

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.

 

[yxee]

Aren't we phasing tax credits out anyway? Pay tax, government pays you some back, why not just pay less tax?

 

[Herr Tubthumper]

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]

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.

 

[TWOCHOICEStom]

Living abroad. Seems fair enough.

 

[Soulman]

Fair enough.

 

[Chicken Run]

Fair enough from me too, think an ageing relative of mine who "winters" on the Costa Del Sol has just lost her heating allowance.

 

[Seagull58]

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.

 

[KZNSeagull]

Seems fine to me also. Are Tax Credits automatic, or do you have to apply for them?

 

[Perfidious Albion]

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]

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]

'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.

 

[rrruss]

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]

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]

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]

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.