Work permit holder claimed tax credit :o(

[Asif1969]

Hi All,

I am eligible for PR in about a month time having been on work permit visa for 5 years now. My current work permit visa has another 3 years to run. I have started looking at the forms to fill in and just stumbled on something that has really turned my world upside down at the moment.

I reached the section on public funds and I thought; let me just check the list. A google search brought up this link:
http://www.ind.homeoffice.gov.uk/applyi ... ublicfunds

Lo and behold, working tax credit now forms part of the public finds. I am 100% sure when I started claiming tax credits, it was NOT on the public funds list! I feel so gutted that I did not check this out again at a later time (

I still have 2 years left on my second work permit visa but I am already eligible for ILR in about a month's time. Can you guys advise as to what the best way forward is?

I am in dire need of some assurances (specially from anyone of the moderators); anyone who has been in similar situation, please advise. I am ready to return all the money I got as I never intended to claim any public funds anyway.

TIA,
Asif

[maveli62]

I know a person who did exactly same as you and ended up in big trouble. HO asked them to leave the country and informed the employer. This guy was ready to pay back everything they got as tax credit. But HO was not satisfied. Finally they sought the help of local MP and got it resolved..

[jaas]

Check this out .....may be you will find some useful information ....

http://www.ind.homeoffice.gov.uk/docume ... iew=Binary

[Jeff Albright]

Yes this is one of the downsides living in this country as compared to other European countries.
You can work like mad, 60-70 hours a week for many years, pay a hell lot of tax but you will never ever be able (for the duration of your limited leave, which may be up to 5 years) to get anything from this government back even if you are having problems, say redundancy. Whilst the others, recognised as certain category of asylum seekers can have access to all the support after having lived here for a much shorter period of time, have several kids and be given free houses. I know so many examples when this system is being exploited this way.
This is outrageous but the fact.

[John]

Asif1969, let's not be too hasty here! Firstly, can you state the nationality of you and your spouse. I ask because some nationalities are totally allowed to claim Tax Credits, even if they holder a visa with the "No recourse to Public Funds" restriction.

Secondly, you are quite right. If you applied for Tax Credits when they first started, Tax Credits were not on the Public Funds list. Not only that, at that time the construction of the Tax Credits application form and guidance meant that IR (the predecessor to HMRC) did not even gather enough information to determine whether Tax Credits should be paid or not.

Asif1969, there is no need to panic about this. And before suggesting a next course of action, please post details of the nationalities of you and your spouse.

[Asif1969]

I can't believe this is happening to me ... it is just very slowly sinking in that I have got myself into a big mess

The link from jaas was quite helpful actually. It says in in

Code: Select all

Section 5.1.6 Wrongly paid tax credits by HMRC
V 1.0
When child and working tax credits were introduced in 2003, they were paid in error to some individuals subject to immigration control. HMRC are stopping
payments to anyone incorrectly awarded tax credits. In such cases, the erroneous receipt of tax credits will not count as recourse to public funds.

I remember I did some enquiries before applying for the tax credit due to my status. I was told that I am allowed to apply for these. However, unfortunately I do not have anything on paper that the HMRC was aware of my status.

I can't remember if the form I submitted at the time required that I declared my status. If so, I would have expected them to stop making any payments to me once it became classified as a public fund.

Can I enquire with HMRC about this?

maveli62, since your friend has had this issue already, I'm guessing he probably started getting this benefit when it was still not classified as public fund. Do you know why he was not able to use the Section 5.1.6 in his case?

TIA,
Asif

[jes2jes]

Asif1969 wrote:

Can I enquire with HMRC about this?

Definitely you should under the data protection act. Google the HMRC website and familiarise yourself as to how to access any information held in your name.

As John quoted:

Asif1969, there is no need to panic about this. And before suggesting a next course of action, please post details of the nationalities of you and your spouse.

Can you post these details so that this can be ascertained before you panicked and also tell us when you made the application. I read the document posted above and it also explains that certain circumstances can lead to an award of PF without breaching the IR. So, your circumstances at the time of application may be a deciding factor.

[jes2jes]

I know a person who did exactly same as you and ended up in big trouble. HO asked them to leave the country and informed the employer. This guy was ready to pay back everything they got as tax credit. But HO was not satisfied. Finally they sought the help of local MP and got it resolved..

According to the policy document posted below in this thread, HO are not allowed to ask receipients to refund the monies received for Immigration Purposes. That is the sole responsibility of the Tax Office no case officer is empowered to do so. The only thing they are asked to do is to fill an enquiry form to HMRC to enquire about revenue collection.

[SYH]

What kind of statement or form would you ask from the HMRC to indicate that you have paid your taxes every year?

[jes2jes]

What kind of statement or form would you ask from the HMRC to indicate that you have paid your taxes every year?

You do not need to ask for a statement or form to ascertain the above. If you are a UK tax payer, then every year you do receive a Form P60 detailing how much tax you have paid etc. Also, when you leave your job, your employer provides you with form P45 and this would detail your tax and NI contributions as such.

You do not need a form to make a request under the DPA. A simple letter with your personal details and identification would suffice.

[John]

Asif1969, again, the nationality of you and your spouse?

[maveli62]

maveli62, since your friend has had this issue already, I'm guessing he probably started getting this benefit when it was still not classified as public fund. Do you know why he was not able to use the Section 5.1.6 in his case?

TIA,
Asif

When this guy applied for Tax Credit HMRC form didn't have the question regarding immigration status. He got it without any question asked by HMRC. But HO told them it was clearly stamped on the passport and Tax Credit is given only when a person applies for it and he should not have applied for it. Only when the MP intervened HO decided to give them another chance. But I think it was because his child got Irish passport(at that time any child born in N.Ireland could claim Irish Citizenship)

[maveli62]

According to the policy document posted below in this thread, HO are not allowed to ask receipients to refund the monies received for Immigration Purposes. That is the sole responsibility of the Tax Office no case officer is empowered to do so. The only thing they are asked to do is to fill an enquiry form to HMRC to enquire about revenue collection.

HO didn't ask him to refund. He volunteered to do so.

[John]

HO didn't ask him to refund. He volunteered to do so.

Why on earth did he do that?

Absolutely no need to pay the money back where the applicants for Tax Credits made a full disclosure of the facts, but nevertheless IR/HMRC made an error, and there was no reason why the applicants for Tax Credits knew it was an error.

[maveli62]

Why on earth did he do that?

Absolutely no need to pay the money back where the applicants for Tax Credits made a full disclosure of the facts, but nevertheless IR/HMRC made an error, and there was no reason why the applicants for Tax Credits knew it was an error.

I don't think IR/HMRC made an error. they treated the application according to the rule prevailed at that time. He was not supposed to make the claim on the first place.. It is stamped on the passport. So the error is made by him.

[John]

Absolutely wrong. There was nothing wrong with him making the claim, especially as Tax Credits were not defined the definition of Public Funds at the time.

[Asif1969]

Hi,

John, thanks very much for your input. I and the wife are both Indian origins. I can see from the list that Indians are not allowed any of these when they have Limited Leave to Remain.

Also to another question about the circumstances; I first claimed in 2003 when tax credits were NOT part of the public funds.

TIA,
Asif

[John]

Asif, do ensure that the Tax Credits claim is withdrawn now, if you have not already done that.

Make it clear to the Tax Credits office that you correctly and completely entered information on to the application form back in 2003. And until very recently you were not aware that you were not permitted to claim Tax Credits.

Do not offer to pay the money back! Indeed ask for written confirmation that you do not need to pay the money back.

The SET(x) form ... notice the Public Funds question is in the present tense. Assuming that you are no longer claiming any Public Funds when the form is submitted, the accurate answer to that question is "No" !

[kariarxy]

If you dont make a claim in the applicaiton form, they wont know that you have received the tax credit, as it is not shown in the P60. I know we should be honest, but only curious if the HO will especially to check with HM about the tax credit if you dont mention it.

[John]

BIA in its wisdom ..... or maybe lack of wisdom, but that is their problem ... have included a question "Are you or your partner receiving any public funds?". That is most certainly a present tense question.

If BIA had wanted to know whether the applicant had ever claimed any Public Funds they could have asked the question differently, or indeed asked an additional question worded in the past tense.

[Jeff Albright]

I know we should be honest, but only curious if the HO will especially to check with HM about the tax credit if you dont mention it.

They have direct links with DWP and it is within their standard procedure to check with DWP if there were any claims for "public funds" during the consideration of an application.
Incidentally, Child Tax Credit is also now regarded as being "public fund" although it is actually the return of your tax that you have paid and therefore it should belong to the category of Tax Credits. It is plain that after your child is born, which he/she is simply entitled to the refund of a part of your money.

[jes2jes]

Jeff wrote:

It is plain that after your child is born, which he/she is simply entitled to the refund of a part of your money.

But although this is true for ILR/PR and Brits, it does not apply to foreigners on WP and othe Limited LTR visas although they all contribute equally to the 'tax man' per ratio of their earnings. IR are sometimes not fair but we live in an unfair world.

[dost halepoto]

Dear Asif,
Dont Worry,
Just stop getting Tax credit as soon as possible before applying ILR. Those who claimed tax credit before 2005 by misstake are ok. see HOME OFFICE LINK BELLOW
www.ind.homeoffice.gov.uk/6353/11464/publicfunds.pdf

Dost

Hi All,.


I am eligible for PR in about a month time having been on work permit visa for 5 years now. My current work permit visa has another 3 years to run. I have started looking at the forms to fill in and just stumbled on something that has really turned my world upside down at the moment.

I reached the section on public funds and I thought; let me just check the list. A google search brought up this link:
http://www.ind.homeoffice.gov.uk/applyi ... ublicfunds

Lo and behold, working tax credit now forms part of the public finds. I am 100% sure when I started claiming tax credits, it was NOT on the public funds list! I feel so gutted that I did not check this out again at a later time (

I still have 2 years left on my second work permit visa but I am already eligible for ILR in about a month's time. Can you guys advise as to what the best way forward is?

I am in dire need of some assurances (specially from anyone of the moderators); anyone who has been in similar situation, please advise. I am ready to return all the money I got as I never intended to claim any public funds anyway.

TIA,
Asif

[adindas]

In fact I have seen quite reasonable number of people have cheated the system. In fact they are just ecomonic migrants rtaher than refugees.

Whose money they are using, it is Tax Payer money, it is your money.

Adindas

Whilst the others, recognised as certain category of asylum seekers can have access to all the support after having lived here for a much shorter period of time, have several kids and be given free houses. I know so many examples when this system is being exploited this way.
This is outrageous but the fact.