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HMRC internal manual

Claimant Compliance Manual

From
HM Revenue & Customs
Updated
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particular aspects: residency and right to reside - customers from an EEA country, including A8 and A2 countries - general

The general rule is that to be treated as being in the United Kingdom for the purpose of CTC and WTC, a person must be both present and ordinarily resident here throughout the period of the award.

The requirement to have a right to reside only applies to CTC claims made on or after 1 May 2004. However, an EEA (European Economic Area) national claiming WTC who is not exercising their free movement rights in the UK as a worker will not be treated as being ordinarily resident in the UK unless they have a right to reside.

Prior to the 1 May 2004 the EEA was made up of Austria, Denmark, Finland, France, Germany, Greece, Iceland, Italy, Liechtenstein, Luxembourg, the Netherlands, Norway, Portugal, Republic of Ireland, Spain, Sweden and UK.

All UK nationals have a right to reside in the United Kingdom. EEA nationals can have a right to reside in a number of different ways (special rules apply to A8 and A2 nationals). Non EEA nationals only have a right to reside if they have leave to enter or remain in the UK.

On 1 May 2004, together with Cyprus and Malta, the following eight countries joined the EEA.

  • Slovenia
  • Slovakia
  • Hungary
  • Lithuania
  • Latvia
  • Poland
  • Czech Republic
  • Estonia

Nationals of these eight countries are collectively referred to as A8 nationals.

An A8 national taking up employment in the UK from 1 May 2004 up to and including 30 April 2011 will be required to register their work with the Home Office Workers Registration Scheme (WRS), unless they are exempt from registration.

In principle this will give A8 nationals the same right to equal treatment as other EEA workers while they are legitimately working in the UK. After 12 months of uninterrupted employment (for example periods of unemployment must not total more than 30 days in any 12 month period) an A8 worker will no longer be required to register their employment under the WRS.

From 1 May 2011, A8 nationals taking up employment are no longer required to register their work with the Home Office Workers Registration Scheme. This is because the registration scheme is not being extended beyond this date.

The effect on tax credits of this change will be as follows

  • an A8 national whose effective date of tax credits claim falls on or after 1 May 2011 will no longer be required to register their work with the Home Office Workers Registration Scheme
  • an A8 national whose current tax credits award runs beyond 30 April 2011, and who is not otherwise exempt from registration, will still be required to register their employment but only up to and including 30 April 2011. Any new or existing employment on or after 1 May 2011 will not need to be registered

From 1 May 2011, A8 nationals will acquire full free movement rights and their right to reside will be decided in the same way as for other EEA nationals.

On 1 January 2007 the following countries joined the EEA

  • Bulgaria
  • Romania

Nationals of these countries are collectively known as A2 nationals.

From 1 January 2007, A2 nationals who want to take up employment in the UK, unless exempt from registration, will generally need to be registered with the Home Office Workers Authorisation Scheme before taking up employment.

For further information follow the guidance in CCM20000 Migrant Workers.