In this section:
- Disability benefits - how do they affect tax credits payments?
- How non-UK benefits affect tax credits
How non-UK benefits affect tax credits
If you or your partner get social security benefits from another country, they usually count towards your income for working out tax credits. But if they are 'family benefits', for example benefits paid because you have a family, they don't count as income if you claim Child Tax Credit. But they may affect how much tax credits you're paid.
Non-UK benefits that count towards your income
The amount of tax credits you get depends on how much money you've got coming in - your income. Some benefits you get from other countries count as part of your income. These include benefits paid in another country because of:
- bereavement
- old-age
- sickness
- unemployment
- invalidity
It doesn't make any difference which country is paying the benefits.
If you get any of these benefits and you're not sure whether they count as income, contact the Tax Credit Helpline on 0845 300 3900.
Non-UK benefits that don't count towards your income
Some benefit payments made by other countries don't count towards your income when your tax credits are worked out. These include benefits that are the equivalent of the following UK benefits:
- Income Support
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Attendance Allowance
- Disability Living Allowance
- Housing Benefit
- Council Tax Benefit
Examples of benefits paid by Republic of Ireland that don't count towards your income:
- Deserted Wife's Allowance
- Lone Parent Allowance
- Unemployment Assistance
If you think you get any of these type of benefits and you're not sure whether they count as income, contact the Tax Credit Helpline on 0845 300 3900.
You get 'family' benefits
If you get a 'family' benefit from an EEA country or Switzerland it won't usually count towards your income when your tax credits are being worked out. Some examples of family benefits from the Republic of Ireland may include the following:
- Child Benefit
- Family Income Supplement
- Lone Parent Allowance
If you're not sure if your benefit is a family benefit, contact the Tax Credit Helpline on 0845 300 3900.
Which are the EEA countries?
The countries in the EEA along with the UK are Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.
How EEA or Swiss family benefits affect tax credits payments
If you get family benefits from an EEA country or from Switzerland, and you're claiming Child Tax Credit, your payments will depend on your personal circumstances. Family benefits do not affect Working Tax Credit - it's Child Tax Credit they affect.
The Tax Credit Office will first of all need to decide whether the UK or the other EEA country is responsible for paying your family benefits under the European rules. They may need to contact you to get more information to help make this decision. The sorts of things that will be taken into account include:
- the country or countries where you and your partner (if you have one) work and pay social security contributions
- the country where you live
- the country where your family lives
- the type of benefits you get either from the UK or from the EEA country
Your EEA or Swiss family benefits are more than Child Tax Credit
If the UK is responsible for paying you your family benefits, for example because you work in the UK and pay UK National Insurance contributions, but the amount of family benefits from the other EEA country or Switzerland is more than the Child Tax Credit (together with any Child Benefit you're entitled to), you'd normally get a top-up from the other country. You would still get the Child Tax Credit and Child Benefit that you are entitled to as well. This is to make sure that, overall, you don't lose out on getting the right money for you and your family.
The top-up is worked out by taking away the UK benefits from what the other country pays you. You'll get the difference between the two.
Your tax credits are more than your EEA or Swiss family benefits
The amount of tax credits you get depends on which country is responsible for paying your family benefits.
If another EEA country or Switzerland is responsible for your family benefits and those benefits are lower than UK family benefits, you'll normally get a top up of Child Tax Credit and any Child Benefit you're entitled to.
The amount of the top-up is the difference between:
- the family benefit payments the other country makes
- the total amount of Child Tax Credit and Child Benefit you're entitled to
If the UK is responsible for paying you your Child Tax Credit and any Child Benefit, and these are more than the family benefits you get from the other country, the other country usually stops their payments.
Any changes to your non-UK benefits
You'll need to let the Tax Credit Office know if any of the benefits you get from another EEA country or Switzerland go up, go down or stop. Tell them too if you start getting a new benefit.
It's important to tell the Tax Credit Office about any changes straight away so you go on getting the right payments.
Contact the Tax Credit Office
If you need more help you can call the Tax Credit Helpline which is open from 8.00 am to 8.00 pm every day except Christmas Day, Boxing Day and New Year's Day. The numbers you can ring are:
- tel 0845 300 3900
- textphone 0845 300 3909 - if you are deaf or have a hearing or speech impairment
If you're outside the UK you can also call on Tel + 44 289 053 8192.
You can ask the Helpline for someone to translate for you when you call.
More useful links
How your tax credits entitlement is worked out
Get details of Child Benefit rates
Your family isn't in the UK - get help with your tax credits claim
