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Concern about TAX Credit

Discussion in 'UK Visa and Immigration Help' started by Nickel, Oct 9, 2018.

  1. Nickel
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    Nickel Active Member

    Has anyone on a spouse visa and has been working ever received Tax credit?
    Will it affect future visa application if you had ?
    Is Tax Credit considered a public fund,considering that FLR-(M) has "no recourse to public fund"?
  2. Anon04576
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    Anon04576 Well-Known Member

    Working Tax Credit is a public fund:-

    https://www.gov.uk/government/publications/public-funds--2/public-funds
  3. oss
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    oss Somewhere Staff Member

    This is Working tax credit :

    https://www.gov.uk/working-tax-credit

    However you could receive a tax credit if you have overpaid tax under Pay As You Earn that is totally different and would not be an issue.

    Are you talking about a claim made for Working Tax Credit or a letter you have received refunding an overpayment?
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  4. Nickel
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    Nickel Active Member

    I do received tax credit that "automatically" comes on my payslip.especially if i work less hours.(Tax as you go)
    I had never sent them any letter for any claim,but i just received a letter that they had over paid me by £192.(note:I would be printing all my payslips to check how much was my tax credit) and would need to get in touch HMRC afterwards.

    I will be lodging my FLR-M(2)early next year and i am a wee bit worried that it could be counted against my application.
    Thank you for providing the link.Grateful for that.
    I will try to read them.
  5. Nickel
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    Nickel Active Member

  6. Alexnew
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    Alexnew Active Member

    The key word here is overpaid. Sounds like a tax rebate to me. A good idea to call HMRC anyway, just to clarify. You'd needed to have applied for working or child tax credits
  7. oss
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    oss Somewhere Staff Member

    That sounds like normal taxation adjustments and that is not a state benefit it is just a correction that your employer makes as they adjust your overall tax for the year.

    For example I get a benefit from my employer as part of my contract which covers dental work, my employer will pay all of my NHS dental treatment each year, I never used that benefit until this year, but because I am directly paid dental expenses by my employer that means that I have paid too little tax this year so my employer had to adjust my tax increasing the amount of tax I pay by about £30 a month until the end of March next year.

    In your case if you have never submitted a claim for Working Tax Credit you should be fine, also if you have worked greater hours and then switch to fewer hours you will normally be entitled to a small tax refund under the PAYE system, if you suddenly start doing a lot more hours you could be told that you need to pay more tax in other words you had been overpaid, adjustments like these normally last for a month or two or until the end of the tax year.

    The important thing is that you have never made a formal claim for the 'Working Tax Credit' benefit.

    One question did the letter stating that you had been overpaid come from HMRC ?
    Last edited: Oct 10, 2018
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  8. bigmac
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    bigmac Well-Known Member Trusted Member

    my mrs received a very nice--and unexpected tax rebate last year..in fact she ended up not paying much tax at all during that year. it was because in 2012, she was here on a student visa...worked lots of hours before her visa ended in the august. so she paid too much tax that year.
  9. Nickel
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    Nickel Active Member

    I will definitely email or see them.
    With regards to application for working or child tax credit,in my case it is absolutely not allowed.
  10. Nickel
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    Nickel Active Member

    The explanation was "Too little tax paid".

    On my first 5 months i wasn't deducted with tax.On my next 12 months they had deducted but since i don't work full time i only earned a little below the Tax free amount when the tax year ended.So on the succeeding year (5th month to be exact) i was already hitting half of the tax free amount and that's when they started deducting tax again.
  11. Nickel
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    Nickel Active Member

    I received a letter together with my P45..saying i owe HMRC that amount.
  12. oss
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    oss Somewhere Staff Member

    That's great, you are absolutely fine you are not in receipt of any state benefit put your mind at rest.

    Not so great that you got your P45 :( Were you made redundant or did you leave your work voluntarily?

    On the one hand everything is fine in immigration terms but on the other you will have to pay HMRC for the underpayment.
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  13. Nickel
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    Nickel Active Member

    Nope.There was a change of Agency Affiliation,but was automatically taken in by the new one.
    I will contact them for that,as soon as we get back from London.
    Thanks a lot..gives me peace now.

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