Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Tax Credits Technical Manual

From
HM Revenue & Customs
Updated
, see all updates

Entitlement: Tax credits and European Law: Determining whether a person is subject to the legislation of a Member State for the purpose of claiming UK family benefits under Regulation (EC) 883/2004

Article 67 of Regulation (EC) 883/2004

The meaning of ‘subject to the legislation of the UK’

A person is subject to the legislation of the UK if they are fully affiliated to the UK social security scheme. Persons fully affiliated to the UK scheme include:

  • workers who are liable to pay Class 1 national insurance contributions. A person who is employed in the UK is liable to pay Class 1 national insurance contributions if their weekly income is equal to or above the Lower Earnings Limit (LEL) for Class 1 national insurance contributions; and
  • Self employed persons who are liable to pay and paying Class 2 national insurance contributions. A person who is self employed in the UK who has not claimed Small Earnings Exemption (SEE) is liable to pay Class 2 national insurance contributions.

Persons who are fully affiliated to the UK scheme are eligible to claim family benefits (CTC and ChB) under Article 67 of Regulation (EC) 883/2004.

Example

Quentin, a Belgian national is employed in the UK with gross weekly earnings of £240.00.

He claims tax credits and Child Benefit for his two children who live with their grandmother in Belgium.

Under Article 67 of Regulation (EC) 883/2004, Quentin is eligible to claim CTC and Child Benefit for his family resident in Belgium if he is subject to UK legislation.

As his weekly income is above the LEL of £107 in 2012/2013 - as prescribed in section 5 of the Contributions and Benefits Act 1992, he will be required to pay Class 1 national insurance contributions and is subject to the legislation of the UK.

So, Quentin will be eligible to claim CTC and Child Benefit under Article 67 of Regulation (EC) 883/2004 and should make a single claim for CTC.