Moving Abroad - Tax Help!

airhostess

Hi there,

I am moving abroad out of the EU in May and not intending to return! Well just for a few visits, not totalling more than 28 days per tax year. Will be living & working abroad out of the EU & I don't own any UK property etc.

Am I able to claim back income tax back for the tax year 2008-2009 (just from April's pay)?

Am I able to claim VAT back on anything I buy in the UK in the run-up to leaving (ie over the next 6 weeks?) I will be buyinga few things before I leave and to claim the VAT back would be great.

Can I keep savings here in my UK bank account, and if so, can I get the interest paid to me without the tax deducted? I also have a mini cash ISA, do I have to close this down now I am not a UK taxpayer? Or can I keep it?

If anyone know the answers to this, or the relevant forms I need to fill, or how long each procedure takes I would be very grateful!

Thanks very much for any help in advance!

AH

fengirl_2

You need to download form P85 from www.hmrc.gov.uk and send it to your tax office with the P45 which you will receive on leaving work. Without knowong your total pay and tax up to the date of leaving the UK, its hard to estimate your tax refund, but there will be some. You can stuill have a UK bank account and HMRC will give a ruling on your reisdence status regarding tax deducted.
Someone else can advise on VAT!

prenton01

you need to fill in a p85 form which declares yourself non domicile , you tax will be re calculated for the time you have been in the uk this tax year and you should get a small tax rebate (i have done all this and spend my time between france, uk and angola)

not sure about your savings and such as i bank offshore

the process depends on your tax office mine was brierly hill and i sent my form off last aug and they were only just opening mail from may so mine didnt go through until dec

read this it should help you

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

fengirl_2

I'm sorry to correct prenton, but the P85 is nothing to do with domicile. It gives the necessary information for HMRC to decide on your residence status - only something they can determine. It is almost impossible to change your domicile status.

prenton01

you can change your domicile status and the p85 is to declare yourself non resident

AIRHOSTESS

if you want some good advice and are willing to pay try these http://www.whittakerandco.org/joomla/

below is a summary of working abroad and becoming non resident

To qualify as UK non resident for tax purposes you have to do a full tax year Apr - Apr out the country although in that year you are allowed to return to the UK for 90 days. Before your travel days did not count as being in country ie if you left the UK on the Monday then that counted as you being out the country, but from this April if you leave the UK on a Monday then it won't count as you being out it will be taken from the next day.
If you go abroad after or before April no dramas BUT you will still have to do a full tax year out the country........Say you leave the country in Sep then you will be allowed a proportion of the 90 days in the UK (45) till April then 90 days till the following April its all evened out at the end so dont feel you have to have 45 days in the first 6 months then the 90 for the Apr=Apr.
Any days not used are carried over to the next year.
If you have to return to the UK for compassionate reasons then these days dont count.
If you do a course on leave in the UK relevant to your current role then again these days dont count, (get a letter from your employer stating this)
I do know of someone who didnt bother getting his days right and was collared off the tax man for 40K after working abroad for 3 years.
Bit long winded but hope it helps.
As for paying voluntary national insurance......to qualify for a full state pension you need to have paid up for 44 years into NI now its only 30 years..............


tony

ohbrightone

OK. I assume that you are ROR (resident and ordinarily resident) as well as UK domiciled. BIG assumption but I don't know anything about you.

In order to break residency you need to remain outside the UK for one complete tax year, i.e. not come back to reside in the UK (e.g. take up employment here) in your case until 6 April 2010. Additionally you cannot spend 91 days on average in each tax year since departing the UK otherwise you may not break UK residency.

That said, assuming you break UK residency, you will become NR in the UK from the day after the date of your departure (assuming here that you are ROR). As a UK resident you are taxable in the UK on your worldwide employment income, thus, if you are NR, you ceased being taxed in the UK on your WW employment income.

You will not necessarily be able to claim back the tax paid at source on your April pay unless it is under the personal allowance threshold.

Regarding your ISAs you must cease contributing to them from the date you become NR in the UK as ISAs are only available to individuals who are ROR. You must notify your provider that you are leaving the UK. THe funds in the ISA will continue to earn interest though.

You can apply for your UK bank interest to be paid without tax deducted subject to a few conditions

fengirl_2

To correct the previous post, you do not have to be below the tax free threshold in order to be due a tax refund - merely to not have used all you allowances which, under PAYE you will not have.

rxconnol

Following on from this topic I have a number of questions

I am due to move overseas (UAE) during mid to late May to take a new job, assuming I do not come back to the UK for the 08/09 tax year will my earnings be tax free as I will have been in the UK for only 60 days? or does it need to be April to April?

Would there be any implications if I was paid into my UK bank account and then transfered sum overseas when needed, or should I get a local account.

Off shore accounts - are these worthwhile, and should I be considering one

I may have to get my wife to post the P45 form off as I will still be getting paid from my current employer until end of June as holiday pay.

One final question, probably stupid, how do they know whether you have been in the country more than 90 days etc

Thanks
Richard

ohbrightone

agh, fengirl you are right. I wasn't quite thinking when I wrote that!

In reply to the above, it needs to span one complete tax year. In other words, it would need to span from 6 April 2009 to 5 April 2010. Note that breaking residency is based on facts, not intention. Therefore, unless you have an assignment letter/contract which will last past 5 April 2010, there isn't much to support that you will be breaking UK tax residency until you actually do.

60 days should be fine- particularly if you are not coming back to work in the UK, etc. A few incidental workdays are generally allowed.

There would be no implications in the UK of being paid into your UK bank account- except for any interest of course! This is based on the assumption that you will not be working in the UK at all and that you break UK tax residency.

Re offshore accounts- can't really see much point...? Personal choice though.

On the final question- you'd be very surprised. If you file tax returns, HMRC can choose to "audit" them for any reason.

Cook_County

Offshore accounts are often very useful for saving UK tax in years of departure/arrival.

You will only break UK residence if you remain in full-time employment in the UK until at least 6 April 2010.

GARDINER

I think the easiest solution for you Airhostess is to take time to read

http://www.hmrc.gov.uk/pdfs/ir20.htm

Excellent booklet.