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Tax Credits overpayments where immigration status was not fully consideredThose coming to the UK for a limited period - for example, to work or to study - are generally subject to the condition that they do not have recourse to public funds.
However, because of a temporary administrative easement, which was ended in 2004, some claimants' immigration status was not fully considered when processing their original claim for tax credits.
This has resulted in some people receiving tax credits in error, when their immigration status actually meant they were ineligible.
Where any such awards have been paid in error and confirmed that the claimants are no longer entitled, the award will be terminated. The amount of tax credits paid to those claimants will not be recovered as an overpayment. This is because it was paid as a result of an official error and it was reasonable for the claimant to think that their award was correct.
Claimants whose claims have been terminated will be sent a letter to explain the reason for the termination and be advised that the overpayment will not be recovered.
Following recent discussions with the Home Office, the letter will also invite the claimant to send a copy to that department when applying for further or indefinite leave to remain in the UK. This should ensure that the Home Office does not consider these payments of tax credits as access to public funds when processing any application for leave to remain from these claimants.
(Accessing defined public funds such as tax credits whilst in the UK for a limited period would otherwise be a breach of conditions, and could result in leave being curtailed or applications for further leave being refused.)
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