gleni

Hi

Just a couple of questions in regards to relocating to Mallorca: -

1. We currently receive Working Tax Credits - can we continue to claim whilst living in Mallorca?

2. I have been self employed for over eight years now and paying Class 2 National Insurance Contributions to HMRC. Can, should, could I keep paying to ensure my state pension or is it transferred to Spain's NI system once I get there?

Any help or recommendations on this would be appreciated.

Many thanks

Gleni

cricketman

Hi Gleni

Social security is residence based so you will have to pay that in Spain. Unfortunately this will mean roughly 260 euros per month each for you and your husband before you start earning. This is fine if you are earning well but a real problem if you need time to build up business

For working tax credits, I have no direct experience, but assume you cannot claim UK ones in Spain. I think only some disability benefits are transferable

However, there are some allowances you can claim from the Spanish government. You get 100 euros per child per month until they are 3. And you can get quite a big tax rebate for having children at the end of the tax year.

Mitzyboy

Just for info, you can actually pay for extra years in your state pension. I looked at it before I left (before realising I didnt need to) and it would have cost me about £300 or so a year

Domino

I cannot see how you can get working tax credit from the UK when working and/or living in another country (albeit in the EEA)

You may be entitled to Child Benefit whilst in the EEA

if you havent already done so look at
http://www.direct.gov.uk/en/BritonsL...oad/DG_4000102

as said above you will have to pay into the Spanish system to gain any pension rights out here, you may not be able to top up to the maximum once you have left the UK

let us know how you get on
rgds

whitelinen

1. Child benefit is not exportable.

2. Yes you can continue to pay in to UK state pension (see Sniks post above)

lynnxa

absolutely correct

although if one parent is still living & working in the UK then that parent can claim it

jojojojojo

If you continue to pay into the UK pension scheme is up to you. But you will have to pay autonoma if you are self employed in Spain (250€+ a month regardless of income). Unless you pay that, you or your family will not be eligible for free Spanish healthcare. You cant take any UK benefits with you (only the disability living allowance with proof I believe) and the benefit system in spain isnt anywhere near as generous and wont give you anything unless you've paid a minimum amount, and then its only for a maximum of two years I believe. There certainly arent any top up benefits or child allowance as such. Hence the desperation of people who are living in spain to get jobs, so newcomers taking them arent always very popular

Someone suggested commuting, which is fine, my husband did it, altho we were in mainland Spain, close to malaga airport and the flights to and from Gatwick were very regular and cheap, I'm not so sure they are from Mallorca

Jo xxx

anonimouse

I was told this week by DHSS, if you make contributions it only gives you something like bereavment benefit, sorry can't remember what it was, but it's a waste of time and money. You can pay class 2 if you are working and paying over here.

battlezone123

If you are claiming certain UK contribution based benefits you are entitled to continue receiving child benefit in Spain.

whitelinen

Do you know which ones? as everyone thinks you can't.

jojojojojo

The bottom line is financially and "stressability", you are better off staying in the UK - certainly til the crisis is over!

Jo xxx

steviedeluxe

Am I the only one who's surprised that someone who has his own kitchen + bathroom fitting business, with a partner who has an online business, can qualify for tax credits in the UK? Surely business isn't that bad?

snikpoh

... just depends on what they declare as income

Mitzyboy

I may be wrong, but I seem to remember DLA

whitelinen

The red flag was the mention of Ltd. Co. Directors are employees (unlike Spain) and can pay themselves what seems a pittance whilst using other legitimate methods to increase the amount.

Ask any woman going through an ugly divorce where husband is a director and appears to be pot less.

Just sayin like ......no finger pointing/offence/accusing intended.