tax rebate when emigrating

jim11115

I am planning to leave the UK in 2009 to live in the Republic of Ireland. This will be a permant move - I have been told that I can get a tax rebate on leaving, is this true?

If so, when would be the best time to leave (this is flexible) and what percentage could I get back?

Thanks, Jim

Murdina

when you leave and if you have hitherto been taxed under PAYE, a tax rebate may arise because PAYE codes assume (unless it is a month 1 code) that you will be in UK for the full tax year so that your allowances are split evenly over the 12 months. So if you stop work part way through a tax year for any reason at all and then have no other income you are most likely going to have paid too much tax.

However, you need to consider if you are going also to be non resident for that year e.g. if you leave late in the tax year, you may be taxable on the whole of your worldwide income in the UK.

If you are leaving to work in Ireland, you may be entitled to split year treatment.

It's not so much the fact you are leaving gives you some special rebate as the way PAYE works. If you are self-employed, then you need to consider if you have any overlap relief which will come back in when you cease working in UK. If you live off investment income, then you need to think about when you leave in the year - probably early is better.

Finally you need to dovetail what you are doing with the Irish situation and make sure you are not gaining by the date you chose to leave UK only to lose out by when you arrive in Ireland.

There are so many variables it may be worth paying for professional advice if your affairs are at all involved and you would need someone who knew about the Irish side to get full all round advice.

jim11115

Thanks for the reply Murdina.

I don't have any investments or much in savings. I work full time for the civil service - so its only PAYE I need advice for. I was told by someone that I could claim back the tax in the same way that migrants to the UK do so when returning home. Its probably going to be a year or so before I leave and I know that the Irish tax year starts on 1 Jan.

Any thoughts on this?

fengirl_2

If you are leaving the Uk permanently and you leave before the end of the tax year (5 April) then you are likely to have unused personal allowances which would give rise to a repayment of tax.
When the time comes you need to download form P85 from www.hmrc.gov.uk, fill it in and send it with your P45 to your tax office in the UK. Refund can be paid into your bank account or by cheque.

Grass_Stained_Feet

I will be leaving full time work and have no source of income from Oct 2008, so presumably I will be able to do the same for the tax taken from April 2008? Thanking you

I take it it wouldn't work the other way around? I started my job in August 2006 and worked August 2006-April 2007 and have continued to work from then.... presumably that tax year I would have been charged correctly? Or do they sometimes over charge that aswell?

Cook_County

If you claim the remittance basis in 2008/09 you won't get a personal allowance so might owe some UK tax.

I am assuming here you are domiciled in Ireland.