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Informing HMRC of leaving the country.

Informing HMRC of leaving the country.

Old Nov 9th 2015, 3:55 am
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Default Informing HMRC of leaving the country.

Finally received my p45 nearly 3 weeks after leaving the UK on my K1 Visa! Im filling in my p85 and have a quick questions in regards to the question "will i be working when i leave the UK?" I am currently not working yet even though i know i can technically work for 90 days and then again when i have filed the I-765 alongside the paperwork for the AOS, but should "yes" as i will eventually be working at some point?
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Old Nov 9th 2015, 12:45 pm
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Default Re: Informing HMRC of leaving the country.

Originally Posted by LauraLou07 View Post
Finally received my p45 nearly 3 weeks after leaving the UK on my K1 Visa! Im filling in my p85 and have a quick questions in regards to the question "will i be working when i leave the UK?" I am currently not working yet even though i know i can technically work for 90 days and then again when i have filed the I-765 alongside the paperwork for the AOS, but should "yes" as i will eventually be working at some point?
If you intend to work in the US answer "yes"
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Old Nov 9th 2015, 2:54 pm
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Default Re: Informing HMRC of leaving the country.

Originally Posted by nun View Post
If you intend to work in the US answer "yes"
This. If you say otherwise it might come back and bite you if you decide you want to make voluntary NICs.
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Old Nov 9th 2015, 8:50 pm
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Default Re: Informing HMRC of leaving the country.

How soon must p85 go in?

How long can I pay voluntary NICs while working in the USA?

And (last one) if the OH was allowed to work and did have EAD but with the change of visa they do not have it, what does that mean for NICs on their side? I'm thinking I can pay their NICs until we get back into having EAD?

Thank you for your experience and expertise!
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Old Nov 9th 2015, 9:02 pm
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Default Re: Informing HMRC of leaving the country.

Originally Posted by Hanco View Post
.... How long can I pay voluntary NICs while working in the USA? ....
So long as you have made a minimum number of years' contributions (three, I think ???), you can (under the current rules) continue paying until you retire, or until you have accumulated enough years to get a "full pension", whichever if fewer.
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Old Nov 9th 2015, 9:10 pm
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Default Re: Informing HMRC of leaving the country.

Originally Posted by Pulaski View Post
So long as you have made a minimum number of years' contributions (three, I think ???), you can (under the current rules) continue paying until you retire, or until you have accumulated enough years to get a "full pension", whichever if fewer.

Good news. I should get on and fill the form in... Thanks.
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Old Dec 21st 2015, 3:30 am
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Default Re: Informing HMRC of leaving the country.

So, i was in the process of filling the form in and taken the above suggestions, i clicked "yes" that i would be working full time in the usa, however, once this option is picked, it then goes on to ask several questions about employer, length of contract, hours work, address of employer and many more work based questions to which i cant answer because i am not currently employed and haven't even received my EAD. Should i still click "yes" and leave the employment section blank and maybe include a letter in the post with the form? or should i click no? as i am not technically working. Sorry to be a pain.. I just don't want this to come back and bite me.
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Old Dec 21st 2015, 5:45 pm
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Default Re: Informing HMRC of leaving the country.

Originally Posted by LauraLou07 View Post
..... Should i still click "yes" and leave the employment section blank and maybe include a letter in the post with the form? or should i click no? as i am not technically working. Sorry to be a pain.. I just don't want this to come back and bite me.
Do not say you are not working because it will likely louse up your ability to pay Class 2 NICs (the cheap ones). Class 2 NICs are permissible on the basis of you working before AND after you leave the UK, so saying you are not working will likely mean you would have to pay class 3 NICs (if you wanted to, contributions are not mandatory), which are almost five times as much!

I would recommend waiting until you have a job before completing any British tax forms.

Last edited by Pulaski; Dec 21st 2015 at 5:53 pm.
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Old Dec 21st 2015, 8:34 pm
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Default Re: Informing HMRC of leaving the country.

Do i have to pay any NIC whilst living in the USA? Wouldn't i just pay USA taxes when im allowed to work and get a job in the USA? If i didn't have to pay NIC and i didnt want to, could i file my tax return now and just fill it in saying im not currently working?
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Old Dec 21st 2015, 8:42 pm
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Default Re: Informing HMRC of leaving the country.

Originally Posted by LauraLou07 View Post
Do i have to pay any NIC whilst living in the USA? Wouldn't i just pay USA taxes when im allowed to work and get a job in the USA? If i didn't have to pay NIC and i didnt want to, could i file my tax return now and just fill it in saying im not currently working?
As I said above, NICs are voluntary, but depending on your age and circumstances can be extremely beneficial. For example, it is possible if you immigrate into the US before (approximately) your 37th birthday, to use voluntary NICs to obtain both a "full" British state pension and full US Social Security, and neither will be reduced in respect of receiving the other. Fortuitously I found myself in this position.

Even if you can't get full US Social Security, you can still use voluntary NICs to get a full British state pension.

At the moment an "NIC year" can be purchased for about £143, Class 2 rate, which is the bargain of the century. It has been rumoured that the Class 2 rate is going to be discontinued for expats, and the Class 3 rate offered instead, which is about £715, but that would still be a pretty good deal compared to other pension investments.

If you don't want to pay voluntary NICs, then I can't think of an issue in completing your declaration now and saying you're unemployed.

Last edited by Pulaski; Dec 21st 2015 at 8:50 pm.
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Old Dec 21st 2015, 8:52 pm
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Default Re: Informing HMRC of leaving the country.

Originally Posted by LauraLou07 View Post
Do i have to pay any NIC whilst living in the USA? Wouldn't i just pay USA taxes when im allowed to work and get a job in the USA? If i didn't have to pay NIC and i didnt want to, could i file my tax return now and just fill it in saying im not currently working?
You don't have to, but you can pay voluntary NICs. This gets you a bigger UK pension than you would otherwise receive.

At current rates, especially if you're allowed to pay Class 2 NICs (most are), then it's a bargain. However, you have to take a view: will the rules on payouts completely change by the time you reach retirement age?

Bear in mind, though, that at the moment, you can back pay for several years, seven, I think, but I'm not sure, so you don't need to make an immediate decision.
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Old Dec 22nd 2015, 10:20 pm
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Default Re: Informing HMRC of leaving the country.

Have they decided yet whether we're all going to have to do Class 3 NICs?

Anyway the application is at the back of this pamphlet: https://www.gov.uk/government/public...ty-abroad-ni38

This is where the information from the P85 becomes important. Unless everyone is going to have to do Class 3, then it won't matter anymore.

You should also file R105 with any UK banks you deal with to stop income tax withholding on the interest.
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