There is an unfortunate oddity in the rules when one member of a couple goes overseas for a short visit. Mainstream credits will usually continue uninterrupted for either 8 or 12 weeks depending upon circumstances.

However, if one member of a couple gives up work on going abroad, the couple’s entitlement to the childcare payments under Working Tax Credit also ceases until the partner returns to the UK and resumes work. This is because both members of a couple normally have to be in work in order to get the childcare tax credit.

This situation has not been well publicised and it is very often the case that those on the lowest incomes will not have understanding employers who will allow them to remain employed whilst overseas. When the facts emerge (and there is a requirement to notify the 8/12 week absences from the UK within three months of departure) then there may be a significant overpayment.

Many people in the UK have had to make emergency visits overseas to cope with the tsunami disaster and could find themselves with a tax credits overpayment as a result.

The Low Incomes Tax Reform Group with the support of other welfare and tax bodies would like to have these rules changed and have raised it with the Revenue. There is more information to be found here: http://www.litrg.org.uk/news/index.cfm?id=181.

If you have come across this problem we would be glad to hear from you via the Contact Us section on our website.