TCTM09375 - Decision Making, Joint or Single claims, Couples where only one partner is in the UK: Cross border workers and how EU Law affects joint claims
The following examples show how the rules - set out in TCTM09374 - apply where a couple who are either a:
- UK, EU, EEA-EFTA or Swiss national living in one EU State, or EEA-EFTA State (Iceland, Liechtenstein, and Norway) or Switzerland and work in the UK; or
- UK or Irish national moving between the UK and the Republic of Ireland; and
how they should claim tax credits, either singly or jointly, depending on different circumstances.
Example 1: Cross border worker - Only one partner working in UK
A couple, Rosie and Jim are both UK nationals. They live together in France with their children. Jim does not work, Rosie works in UK returning to their home in France at the end of every working week.
In this example Rosie and Jim must make a joint claim for tax credits and HMRC will treat their claim for WTC and CTC differently.
WTC - Rosie must be treated as being present and ordinarily resident in the UK, but Jim doesn’t work in the UK, so must not be treated as present and ordinarily resident in the UK. HMRC will treat their claim for WTC as a single claim made by Rosie.
CTC - Rosie is entitled to UK family benefits (CTC and ChB) for her family members living in France as if they were living in the UK. Rosie, Jim and their children must be treated as if they all lived in the UK. HMRC will treat their claim for CTC as a joint claim.
Example 2: Cross border worker - Both partners work in the UK
In example 1 above, if both Rosie and Jim work in the UK they must make a joint claim. HMRC will treat this as a joint claim for both WTC and CTC.
Example 3: Cross border worker - One partner works in the UK, other starts work in the EEA
Using example 1, if the non-working partner, Jim, starts work in France, that country becomes responsible for paying any family benefits - due to Jim’s employment in France and residence of the children. The UK’s competency for paying CTC ends and France becomes the ‘competent state’ to pay their equivalent of CTC and CHB. If France’s rates are lower than the UK’s rates, the UK may ‘top up’ the amount to what the couple got from the UK to ensure they do not lose out. The amount of CTC the couple would get from the UK must be calculated on a joint claim basis.
In this example, they must make a joint claim for tax credits. HMRC will treat the claim for CTC as a joint claim and the claim for WTC as a single claim made by Rosie.