Written confirmation has been received today (02/06/2015) regarding HMRC’s position on Tax Credits for couples where one claimant works overseas.
Previously we have quoted the rule – ‘In the case of a joint claim, where one claimant works out of the UK for 8 or more weeks at a time, the claimant remaining in the UK in entitled to make a sole claim’
We have never received a definitive response from HMRC, despite numerous requests, until NOW. The response was requested as many clients were receiving different advice from the Tax Credit helpline and the rules seemed to be open to interpretation.
Working outside of the United Kingdom on a rotation/transit basis is regarded as a temporary absence from the UK, in this case a joint claim would need to be made and overseas income needs to be declared to the Tax Credit office.