R2R and non EU family member

Hi there

Client is Italian, wife Nigerian. He came in 2010 and was self employed until April 2011 when gave up due to lack of work. He was then supported by family and friends, not working or claiming JSA. Wife and 3 kids came in August 2011 - 2 kids went into school in Sept/ Oct 2011 while neither parent working. He did some vocational training eg in door management (security) and first aid. uncoonected with his former self employment.

Claimed HB in Aug 2011, refused and he has now come for advice.

Wife got residence card in Feb 2012 then started working f/t from March 2012. Client has worked for 10 hrs pw from July 2012.

LA have refused to review earlier disallowance from March 2012 when wife started work as she has a derived R2R and he was not exercising treaty rights at the time. I know you cannot rely on the residence vard for a R2R, but is this correct?

I have advised a fresh claim while we sort out the back period as he has clearly been a worker from July 2012 but would appreciate some advice on issue of whether non EU national work can count and also possibly Art 12 rights where kids went into school before eother parent started work.

Many thanks!