Brooks52

Hi Everyone

We will both stop working in early June ready for our move. Because we will be earning less than the annual tax free allowance(~£11,000), does that mean that in theory we should get a tax refund on everything we have paid since April? Say we earned exactly £11,000 and paid £4,400 in tax, should we get a refund of £4,400?

I'm not expecting anybody to be giving me official tax advice here, I'm just wondering if that's roughly how it's worked based on other peoples experiences/knowledge?

Thanks

christmasoompa

Yep. If you've paid tax via PAYE but haven't earned over £12,500 (I think that's what it's going up to next month) in the 2019-2020 tax year (assuming you are eligible for the personal allowance of course i.e. don't earn over the limit), then you'll get that tax back once you submit the P85.

Brooks52

Thanks, that's the answer I was hoping for. Certainly not going to factor that in to spending plans, but it will be a nice bonus!

A final one on that, do you know if I'd be expected to add those earnings then (April - June) to next years Canadian tax return, or would they only be concerned with earnings after we land (July)?

christmasoompa

Not a clue, sorry! That was the extent of my tax knowledge. I'm sure others will know though.

Hurlabrick

The UK and Canada have different tax years. UK runs 6th April to 5th April, Canada runs 1st Jan to 31st Dec. AIUI, you will only be liable for Canadian tax from the date you 'land as settler'.

Hurlabrick

Having said all that, I believe (but am not certain), that CRA in Canada pro-rata's your first tax year in Canada such that you do not get the full Canadian equivalent of a tax-free personal allowance in Canada, so yes, you might be getting a bunce from HMRC and the amount you earned before coming to Canada is not liable to Canadian tax, but CRA will get you another way.

As I say no expert and I might have that 'around my neck' - happy for others more expert to chime in and shoot me down if necessary!

Siouxie

All about how Canada Taxes work - for newcomers!
https://www.canada.ca/en/revenue-age...nada-2016.html