12 March 2014
HMRC publishes new guidance about ‘the right to reside’ test
The new minimum earnings threshold for European Economic Area (EEA) migrants affects the ‘right to reside’ test for Child Benefit and Child Tax Credit and came into effect on 1 March 2014.
A claimant and members of their family can have the right to reside if the claimant is classed as a ‘worker’ or ‘self-employed person’.
HMRC has published new guidance to explain the definitions of ‘worker’ and ‘self-employed person’ for the right to reside test, including the new minimum earnings threshold which plays a part in deciding if the work is genuine and effective. You can read HMRC’s guidance, which is published on the GOV.UK website, here
There are still some points we need to clarify about how the test will be applied in certain cases and we will be updating our section on Tax Credits: Who can claim? shortly.