Tax Back
 

Can anyone tell me, when we apply for are tax back before we leave, do we get a percentage of what we have paid since April or all of it back?

Thanks Helen

Re: Tax Back
 

I'm not sure on what basis you are applying for tax back but my experience on leaving the UK to go to US was this. I left in July. This meant that I had worked for 4 months of the tax year in the UK. I completed a tax form at the end of that financial year and I got some money back. The reason was because I had only worked for four months my income for that year fell into a lower tax bracket than it was expected to, had I worked the full year. So any tax that the IR had taken at the higher rate was returned.

But as far as I know you do have to pay tax in the UK on any money earned while you live there. I'm not aware of any reason why you would get it all back.

Re: Tax Back
 

It all depends on your tax code. If for example your tax code is 453L, that means you can earn up to £4530 before paying tax, however your tax is worked out monthly so even if you've earned less than £4530 you'll still pay tax. If by the time you leave the UK you have earnt less than £4530 you can claim all your tax back, if you've earnt more you will get back part of your tax but you will still have to pay tax on the amount over £4530.
This is what my bosses accountant told me.

Does that make sense?
Marie

Re: Tax Back
 

there is a specific tax form to fill in......if you do a forum search you will find several interesting and informative threads on the subject...!! :D

Re: Tax Back
 

There is a special part of the Inland Revenue that deals with overseas UK taxpayers. There is a form you can fill in and send to them to inform them that you are going overseas, I think once you have done this, they will refund you any tax owing. Any tax owing will be because you are taxed at what is your predicted average tax rate for the year assuming you will keep earning at the same rate.

The reason most people fill this form in is that if you let your property and use an agent, then the agent is obliged to withold income tax on the rental income if the agent knows you are abroard. By filling in this form, you can get an exemption that will stop the letting agent taking this tax.

Alex

Re: Tax Back
 

It is the IR85:

http://www.hmrc.gov.uk/cnr/p85.pdf

Re: Tax Back
 

Thanks Worzel, I was about to look for that.
Marie

Re: Tax Back
 

Good work Worzel, I will be recommending you for a promotion.

Jim

Re: Tax Back
 

Hubby was told that if you leave the country part way through the financial year you will be entitled to tax back as you are charged tax based on being in the country for the whole year. You just ring the inland revenue and they send a form. It was no use to us as we emmigrated I think the day before or after the tax year ended.

Katie

Re: Tax Back
 

You need to submit IR form P85, which needs to be supported by your P45.

Stu