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HMRC internal manual

Tax Credits Technical Manual

Entitlement: Tax credits and European Law: Article 7 of Regulation (EU) 492/2011 - Working Tax Credit (WTC)

The Tax Credit (Residence) Regulations 2003 and Article 7 of Regulation (EU) 492/2011

Article 7 provides that workers from other Member States must not be treated differently from nationals of the host Member State as regards their conditions of employment and in particular, that they should enjoy the same tax and ‘social advantages’ as national workers.

The principle in EU law that provides that workers shall be entitled to equal treatment regardless of which Member State they live or work in is recognised in the Tax Credits (Residence) Regulations 2003.

Regulation 3(4) of the Tax Credits (Residence) Regulations 2003 provides that EEA nationals who are exercising free movement rights as workers are treated as ‘ordinarily resident’ in the UK for the purpose of claiming working tax credit (WTC).

Where the worker is working in the UK, and is not ordinarily resident, but is treated as being ordinarily resident in the UK under the provisions of Regulation 3(4) of the Residence Regulations, and the partner is neither present nor ordinarily resident in the UK (nor treated as such) then the couple are not entitled to make a joint claim for WTC. In such cases, the worker should make a single claim for WTC.

For examples of when a single or a joint claim for WTC should be made - please refer to the decision making chapter TCTM09370.