The COVID-19 pandemic is affecting economies and societies at their core, making it more than a health crisis.
According to a new study announced on Aljazeera.com, 1.3 million migrants have left the UK for a period of one year - the largest population decline since World War II.
Many non-residents who were working in the UK were left with no choice but to return to their home country, thanks to COVID 19.
If that sounds like you, you may be wondering if you have any tax responsibilities after you leave the UK.
Should you inform HMRC (HM Revenue & Customs)? Do you get your tax back when you leave the UK?
In this guide, we are going to cover everything you need to know about filing your tax return and claiming your tax refund from outside the UK.
Do I need to tell HMRC if I move out of the UK?
While there is no need to inform HMRC if you are leaving the UK for holidays or a business trip, it is important to tell the tax office if you’re either:
leaving the UK to live abroad permanently
going to work abroad for at least one full tax year
Who is required to file a tax return when leaving the UK?
If you do not usually complete a Self Assessment tax return, you must complete Form P85” and send it to HMRC.
If you were employed in the UK, you must also send parts 2 and 3 of your P45 form (you get these from your last employer or if you’ve been claiming Jobseeker’s Allowance, from Jobcentre plus) to HMRC.
Be aware that if you lose the original, your former employer won’t be able to give you a replacement. Instead ask for a Statement of Earnings, for the tax year you have been employed.
Once you leave the UK, you will have to complete a tax return if, for instance, if you receive UK-sourced income (like rental income on a property based in the UK).
To make sure you do not pay tax twice, the UK has double taxation agreements with many countries.
How do I claim tax back after leaving the UK?
If you are leaving the UK, you will not be able to use HMRC’s online services to tell them. You will have to send your tax return by post.
You have the following options:
You can apply directly with the HMRC - While this option is free, it’s also important to be aware that it will be up to you alone to ensure you are compliant with HMRC and that you receive your maximum tax refund
You can get help from a tax expert - If you would like a hand filing your taxes and claiming your refund, Taxback.com can help you
What if I normally complete a tax return?
To claim your tax back, if you usually complete a Self Assessment tax return (if you are self-employed, or have an active UTR number), you should complete it as normal, when you have all the information for the tax year. In this instance, it’s not necessary to complete Form P85.
It will be calculated as part of the tax return process if you are due a refund.
If you are planning to come back to the UK or will remain a UK tax resident you may need to keep your Self-assessment record open.
If your tax affairs get complicated, consider looking for professional advice to help you complete your tax return. Our tax experts are available 24/7 to answer all of your tax-related questions.
If you are leaving the UK permanently, you must submit the date that you departed on your tax return. HMRC should close your Self Assessment record and stop sending you tax returns to complete.
Do you get your tax back when you leave the UK permanently?
If you are leaving the UK (or you have relocated in the last four years), you are most likely due a leaving the UK paye tax refund.
To work out how much your UK tax rebate could be, you can use our UK free tax refund estimator.
HMRC will send you any tax refund that they owe you if you have overpaid tax when they process Form P85. They may ask you to complete Form R43 as well before they send you a tax refund, if you have been in the UK for a short period of time.
Will HMRC send my tax refund outside of the UK?
It’s important to know that HMRC won’t make payments to overseas bank accounts. On the other hand, Taxback.com can send your tax refund worldwide.
Why would I be due a leaving the UK tax refund?
You may be due a UK tax refund if:
you have not used the entire amount of personal allowance in the year you leave the UK
you are still a UK taxpayer but you are employed abroad
there is a range of work-related expenses that you may not have claimed before you left
you are a non-resident landlord of a property in the UK or you have a non-resident status
The average UK tax rebate is £963
How much tax back can I claim when I leave the UK?
The average UK tax rebate a Taxback.com customer receives is £963.
However, exactly how much you will be due back will depend on your personal circumstances.
Can I get my National Insurance money back if I leave the UK?
If you leave the UK permanently, you won’t be able to claim back any National Insurance you’ve paid while working in the UK.
If you are moving to a country that has a social security agreement with the UK, anything you’ve paid might count towards benefits in the country you’re moving to.
Who can help me sort out my tax documents and claim my tax refund?
We will sort out the tricky tax paperwork and make sure that you avail of every tax relief that you are entitled to so that you get the maximum legal tax refund.
Why choose Taxback.com?
Our team will ensure you avail of every expense and relief you're entitled to
We'll transfer your maximum legal UK tax refund straight to your bank account anywhere in the world
It's a convenient online service. We do the work. You get the cash!
Got tax questions? Our Live Chat team are on hand 24/7 to answer you