Tax Code 0T-M1 After Moving Out of UK

Hans_Meier

Dear all,

I've lived in the UK from 10/2015 until 12/2017.

During that time I got shares assigned from my company that only vested in 2018 (e.g. £1000 worth of shares were assigned in 2016 and they vested 05/2018). Vesting plans are taxed pro rata (i.e. the majority of the share value at the time of vesting is taxed in the UK, the remaining % in Luxembourg, where I moved to).
Now I received a payslip from the UK and they automatically changed my tax code to "0T-M1", leaving me with zero allowance. That's particularly painful as I don't have any other income in the UK.

I know it's a long shot / edge case but does anyone know if I'm eligible to have a tax-free allowance also after moving out of the UK? I had the same before when I moved from DE to UK and the DE tax automatically used the tax-free allowance until 'used up' until 2 years after I moved away.


Thanks in advance!

EdSwippet

Hans_Meier wrote: »

I know it's a long shot / edge case but does anyone know if I'm eligible to have a tax-free allowance also after moving out of the UK?

You don't state your nationality, but from the sound of things the answer is probably yes. From this document:

Personal Allowance
You’ll get a Personal Allowance of tax-free UK income each year if either:
- you’re a citizen of a European Economic Area (EEA) country - including British passport-holders
...
Claim the Personal Allowance
If you’re not a UK resident, you have to claim the Personal Allowance at the end of each tax year in which you have UK income. Send form R43 to HM Revenue and Customs (HMRC).

Hans_Meier

Thanks - can't believe I didn't find this. Seems easy but only getting the money a year later. I'm German citizen so EEA but not UK resident. Will be interesting how that plays out as I'll be trying to claim the money after Brexit. What a mess.

Hans_Meier

Should someone have a similar issue in the future: I talked to HMRC to resolve:
You can use form P85 in order to re-claim taxes within the tax year if you are eligible for a personal allowance even if you are not UK residence which is mostly true if you receive income after having moved away and are EU/EEA citizen. I can't post the link but it's the first result when you google P85.