Kamg Coffee

What You Should Know about Tax Credits if You are Living or Working Outside the United Kingdom

If you are living abroad or are making plans to live abroad and you are a citizen of the United Kingdom, you may be entitled to certain tax credits. Not many people may be fully aware of the credits they can get, but it would be in your best interest if you could get all the information you need regarding this; it's almost as important as knowing how much you can get with your state pension. The thing is, your tax credits in the UK can be affected depending on your circumstances abroad – for instance, if you have a child and are living in a member state of the EU, if you don't work abroad but reside with your partner abroad, and so on. So what should you know about tax credits if you are living or working outside the United Kingdom? Let's find out. Crown servants overseas If you are a servant of the crown who is posted for work overseas, you may get tax credits. HMRC (Her Majesty's Revenue and Customs) can treat you as ordinarily resident in the United Kingdom just before you went abroad, or if you have been posted overseas several times and with no breaks. Ordinarily resident means that you normally reside in the UK. For HMRC to decide this, they will have to consider factors such as where your home is, where your close relatives live, why you were in the UK, and if you are planning to leave the United Kingdom permanently or for good in the next two to three years. You may also be eligible for particular tax credits if HMRC knows that you were in the United Kingdom prior to being sent abroad and the reason for your being in the country was due to your … [Read More...]