The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
New claims for tax credits are no longer possible as they have been replaced by the universal credit for all claimants. Until January 2021, it was possible for those entitled to severe disability premium (SDP) to make a new claim for tax credits, but SDP claimants are now also being migrated to universal credit.
Existing claimants of tax credits will continue to receive tax credits until they are migrated to the universal credit system. Migration will take place when a change in circumstances is reported.
See the Universal credit guidance note.
To be eligible for tax credits, the individual must usually live in the UK ― that is England, Scotland, Wales or Northern Ireland. The UK does not include the Channel Islands or the Isle of Man.
For claims made on or after 1 July 2014, the claimant must have been living in the UK for three consecutive months immediately prior to making the claim. This rule applies equally where the claim is backdated; the claimant must have been living in the UK for three consecutive months immediately prior to that earlier date. However, this three-month rule does not apply to individuals who entered the UK before 1 July 2014 or have UK refugee status. For a full list of exemptions, see the revenuebenefits website.
A claim can continue during short absences from the UK of up to eight weeks a year, or up to 12 weeks where illness is a factor.
The claimant must be present and ordinarily resident in the UK for the period of the claim. Although the term ‘ordinarily resident’ was generally abolished for tax purposes from 6 April 2013, the concept still exists for tax credits. The guidance for tax credit purposes describes this as normally residing in the UK (apart from temporary or occasional absences), and that residence in the UK has been adopted voluntarily and for
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
What is a settlor-interested trust?A settlor-interested trust is one where the person who created the trust, the settlor, has kept for himself some or all of the benefits attaching to the property which he has given away. A straightforward example is where a settlor transfers assets to trustees for
RDEC ― large company R&D reliefSince 1 April 2016, or from 1 April 2013 by election, large company R&D relief is given through research and development expenditure credits (RDEC), which is a taxable credit payable to the company. As the credit is taxable, it is also sometimes called an above the
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s
Class 1 and Class 1AClass 1 and Class 1A are the categories of NIC that can be charged on expenses reimbursed and benefits provided to employees. These classes are mutually exclusive. A benefit cannot be subject to both Class 1 and Class 1A NIC. Three requirements must be met before Class 1A NIC is
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.