Archive » United Kingdom » HSMP AND TAX CREDITS
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| ajani Junior Member Member # 6289 | Posted October 27, 2003 01:33 PM Hello kalayami and all others like joseph and travon. May i commend you all for your brilliant contributions to this discussion board. A lot of guys out there owe you lots of thanks for in depth advise given for free. May i especially say thanks to kalayami, i have read a lot of your post and they are brilliant. I will want you to pls advise regarding working tax credit and children tax credit for hsmp status holders. A friend told me that the working families tax credit has been replaced by the two. He stated that although the two falls other public funds, there is an exception for married partners with a foreign couple settled in UK. Is this true? How will the receipt of this credit affect the extention application of an hsmp applicant taking into consideration that it takes time to get a really good job, and there are the kids to feed. I hope to hear from you soon. thanks |
| Joseph01 Member Member # 7141 | Posted October 27, 2003 06:34 PM Ajani, I believe that the Children's Tax Credit (currently not on the list of public funds) replaced the Child Benefit (which is on the list). If you made a certain level of income below about £35,000 per annum, you ccould get some of this benefit. Since it is not on the list of Public Funds, apparently you can take this benefit without consequences. Personally, I wouldn't bother--simply because the rules can change (I suspect that the Immigration people haven't updated their list yet) and the benefit is not that much anyway. That's just my opinion however! The Working Family Tax Credit is on the list of Public Funds and therefore cannot be taken, especially if you want to renew and get ILR. You mentioned that your friend said "foreign couple settled in the UK." "Settled" normally means having ILR and, if that is the case, none of these restrictions apply. Joseph |
| Thorsten von Thyssen Member Member # 4397 | Posted October 28, 2003 03:03 PM I agree with Joseph. Small correction - Children Tax Credit was replaced by the "Child Tax Credit" and has nothing to do with Child Benefit. [ October 29, 2003: Message edited by: T-N-A-V-O-N ] -------------------- ----------------------------------- |
| Thorsten von Thyssen Member Member # 4397 | Posted November 02, 2003 10:13 PM Child Tax Credit will be soon added to the "Public Funds List". The Tax Credits (Immigration) Regulations 2003
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| Joseph01 Member Member # 7141 | Posted November 03, 2003 10:17 AM T-N-A-V-O-N That's exactly what I thought would happen... Joseph |
| Kayalami Member Member # 5984 | Posted November 03, 2003 10:35 AM Yep it was too good to last - it really sucks for employment based visa holders who pay Income Taxes and NI contributions but don't even qualify for the Tax Credits. I wonder when they will scrap free NHS care for them. -------------------- ---audi alteram partem--- |
| Thorsten von Thyssen Member Member # 4397 | Posted November 03, 2003 11:10 AM If you ask me, I would not cry if they scrap the NHS altogether. It is much safer to go to witch doctors. -------------------- ----------------------------------- |
| Thorsten von Thyssen Member Member # 4397 | Posted November 03, 2003 11:35 AM Joseph, Are you an American? If so, you can do something in order to get the Child Tax Credit. -------------------- ----------------------------------- |
| ajani Junior Member Member # 6289 | Posted November 03, 2003 12:18 PM what will happen now, if one has already taken the child tax credit, do you need to tell them to stop paying it/ |
| Thorsten von Thyssen Member Member # 4397 | Posted November 03, 2003 12:21 PM Wait until the Home Office formally publish the updated list of public funds. -------------------- ----------------------------------- |
| Joseph01 Member Member # 7141 | Posted November 03, 2003 01:03 PM T-N-A-V-O-N Yes I am. What could I do to get the benefit? Joseph |
| Kayalami Member Member # 5984 | Posted November 03, 2003 01:18 PM Note that until the Home Office officially list a benefit/ credit as a public fund claiming such is not a breach of the 'no recourse to public funds' condition endorsed in any entry clearance/ further leave to remain visa. -------------------- ---audi alteram partem--- |
| Thorsten von Thyssen Member Member # 4397 | Posted November 03, 2003 02:08 PM Joseph, As far as I know the US does not discriminate against UK citizens when it comes to US Child Tax Credit. They can get it as long as they are resident in the US (no requirement to be free from US immigration control = greencard). -------------------- ----------------------------------- |
| Joseph01 Member Member # 7141 | Posted November 03, 2003 03:54 PM T-N-A-V-O-N, Actually the IRS does discriminate against non resident aliens. Rule #3 of the Earned Income Credit rules state: "You must be a US Citizen or Resident Alien (green card holder) All Year." Personally I think the US already violates the rules of the treaty when it doesn't allow foreign tax credits against 10% of AMT (for high earners) in spite of the UK taxation rate being substantially higher than the US's. But that's another story--part of the cost of being a US citizen. Joseph |
| Thorsten von Thyssen Member Member # 4397 | Posted November 05, 2003 11:39 PM Joseph, The US does not discriminate as you claim. The non-discrimination article in a tax treaty works like this: Country B cannot descriminate against the nationals of country A resident (for tax purposes) in country B. But country B CAN discriminate against nationals of country A who are not resident (for tax purposes) in country B. In almost any tax treaty the term "Resident" for tax purposes is judged under the domestic tax rules of each contracting country. There is a "tie breaker rule" if both contracting countries consider a taxpayer to be resident of theirs. US Tax residence rules are much different from UK rules. In the UK the rules are quite simple. If you are present in the UK for 183 days or more in any tax year and / or visits the UK for more than 91 days in four consecutive years then you are resident for UK tax purposes. (For simplification reasons I am not referring to the term Ordinary Resident.) In the US the rules are more complicated. You are resident (for tax purposes) if you are a US citizen, a US permanent resident or an alien who meets the Substantial Presence test. Most foreign nationals who would be considered resident for UK tax purposes will be considered as Non Resident Aliens for US tax purposes as they don't meet the Substantial Presence test. Consequently, the US has no obligation under a tax treaty to give these taxpayers any favorable treatment as they are not resident for US tax purposes. [ November 06, 2003: Message edited by: T-N-A-V-O-N ] -------------------- ----------------------------------- |
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