Family allowance in USA

[tonytime]

My HI visa has finally been approved, and I hope to move across in October, along with my wife, also my 11 year old son will be coming along, how do we stand with the family allowance that we get for him in the UK, do we lose this, or is it best just to say nothing, and continue to have it paid into a UK bank, or can we still claim it although we are not UK resident.

[synthia]

Welcome to the forum! I think there have been some similar questions in the UK section, so check there if you haven't already.

[RICHNTRISH]

Must admit we were planning on the latter , and why shouldn't you .

[twostep]

You may want to check into this. Some EU countries consider it fraud and actually prosecute.

[synthia]

I think the UK scans passports on the way out of the country, so they will know that he is gone, and whether he has come back. It probably isn't checked by the social services people, but it might be.

[tonytime]

Thanks for the posts, I suppose I will have to bite the bullet and give them a call. I will post any reply I get.

[Bevdeforges]

Don't you have to notify the tax authority in the UK that you are moving out - in order to justify your "non-resident" status for taxes? I would think that that might notify the various agencies that pay out family or other allowances.
Cheers,
Bev

[RICHNTRISH]

Left hand doesn't know what the right hand is doing is a term thats spings to mind when it comes to UK govermental departments .You grant them way to much credit to think they talk to each other .

[twostep]

Originally Posted by RICHNTRISH

Left hand doesn't know what the right hand is doing is a term thats spings to mind when it comes to UK govermental departments .You grant them way to much credit to think they talk to each other .

Rest assured - they do occasionally:>)

[Bevdeforges]

Originally Posted by twostep

Rest assured - they do occasionally:>)

Twostep, you raise in interesting issue here! I was, of course, thinking of the UK tax folks talking to the UK benefits folks. But what about the US tax folks talking to the UK tax folks? That one is actually likely.

Technically, the family allowance would have to be reported on the US tax returns (because in the US you're taxed on worldwide income). If you don't report it, it can come back to bite you forever (i.e. no statute of limitations on income not reported).

I don't know how it's treated in the UK, but I have heard some reports of the US cross checking tax returns with other countries.

Oh well, I guess we'll hear about it if it doesn't work out.
Cheers,
Bev