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HMRC internal manual

Claimant Compliance Manual

HM Revenue & Customs
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Migrant workers: self sufficiency

An EEA or Swiss National who is not employed or self employed only has a right to reside in the UK if they are self sufficient.

This generally means that they have sufficient funds to keep them above the level of social assistance, and that is defined as Income Support, Income based Jobseekers Allowance, Pension Credit or Income based ESA.

You will need to take all of the customer’s personal circumstance into account when deciding whether they are self sufficient.

Such factors to consider are:

  • Have there been any claims made to the UK Social Benefits by the customer or family members?
  • Has Income Support been refused on R2R grounds rather than for any other reason such as excess income or working more than 16 hours?
  • Are there any other obvious sources of income or capital declared on the claim form?

If there is no job, self employment or any other form of income declared on the Tax Credit claim form it is reasonable for you to contact the customer and ask for details of any other income or capital.

If the person has told us they are working or self employed and this proves to be fictitious, then we do not assume they fall into the category of being a self sufficient person. This is because they have instead told us they are a ‘worker’.

If other income is declared you will need to establish whether this is sufficient for the customer and family to be living off (The IS weekly dependency rate is a good bench mark).

If an economically inactive customer says they have no other resources beyond CTC/ChB you can conclude that they are not self sufficient. This means they have no R2R in the UK and therefore not entitled to CTC.

If an A8 National is employed but fails to correctly register their employment they cannot be regarded as self sufficient based on their unregistered earnings, this means they have no R2R as a worker and will not be entitled to CTC.

For further information refer to the SEES decision tree guidance ‘B&C A test for right to reside’. To view the decision tree

  • Open ‘Microsoft Excel’
  • Select ‘Sees’
  • Select ‘Information’
  • Select ‘Decision Trees’
  • Select the ‘National’ tab
  • Select ‘B&C A test for right to reside’.

For additional further information follow the guidance in TCM0287240 and TCTM02075