happygolucky121

I was looking for some information. I am trying to understand how tax rebates are worked out, i am due to depart for Brisbane in Sept, which means i will be 6mths into this tax year?
Can anyone tell me how the inland revenue calculates what the rebate is? I am update with all tax and have a standard allowance. ?? Would like to try and work out what is due to aid with forecasting how much money i will have to take to Oz.

Any help appreciated...

DrWho

Just work out your expected earnings before you go, deduct your allowances and apply your tax band to what's left...

Check out this link for lots of Tax info for people moving abroad...

DirectGov

jayr

I cant remember all the UK tax bands anymore so the numbers below are all made up.

Let say you earn 50,000 a year. You are tzxed monthly as if you are going to be there the full year. Lets say that 10,000 of that is paid at 40% tax band so 4,000 a year of that is tax or 333 a month.

If you leave after 6 months you have only actually earnt 25,000 in that tax year, but you were still taxed as above.

If a 25,000 salary should have only been taxed (marginally) at say 30%, then over 6 months you have paid too much tax based on 10,000 x (40%-30%), or 1,000 for the year. Given you had been paying that for 6 months the IR would owe you 500 GBP.

carmele

oh you clever clogs!
Logic has never been my thing!
This has helped me to woekout what rebate oh may get as you have put it in its simplest form!

Ta

Carmel

datamile

You get the full UK year allowances I believe, so if you're taxed expecting to be in the 40% band, then you should get some back if you're still under.

Just done my 06/07 uk tax returns.. first time in 10 years that I've not done it in late January.

Go through the p85 notes here as this is the lovely form that you fill in when leaving the uk tax system

http://www.hmrc.gov.uk/cnr/r_and_d.htm#p85