Are you an individual who is planning to leave the UK to settle abroad for the cause of working or residing there? Here is something you should know. You have chances to be entitled for leaving the UK tax refund. It purely depends on what circumstances are you in while your stay in the UK living as well as your tax status will matter a lot. To make it a fair process, you are advised to bring this in the knowledge of HMRC as well as the UK tax authority that you are planning to move abroad.
Furthermore, this will help them to make accurate decisions to identify whether you are eligible according to the criteria for a UK tax refund. The relevant calculation, in this case, will take time, so, your information should be right on time if you aim to pursue your dream of a tax refund. If you are moving and wondering about how to get the tax refund, whether you are in a position to claim, or how can you do it? We have got you covered here with everything that you need to know about leaving the UK tax refund.
Get in touch with one of our professionals to learn about Tax Refund if you are planning to leave the UK soon, we will love to help!
Leaving the UK Tax Refund – Know Whether You are in A Position To Claim?
The prominent condition to claim the tax refund is the scenario that you are an individual who is residing in the UK currently and planning to move abroad for working or living reasons. This is obvious to understand that in such a case you will become a non-UK resident in the future. You will continue to pay your taxes, however, the only difference it will make is that you will pay it in the country you plan to settle. Not in the UK anymore.
There is a possibility to claim the tax refund even if you are a taxpayer who is residing and working in the UK. You have to be associated with the UK tax net continuously. However, you plan to move back to the home country you belong to or work in a different country. You should be able to identify if you are in a position to claim the tax refund in the UK or not. Once you ensure that you can be the one who has a chance to be entitled to the tax refund, you can begin the process. Informing the tax authorities in the UK and HMRC should be your first step.
Claiming Tax Back? – Learn How To Do It?
It will be a requirement by HMRC to fill out a few forms to complete the claim process for a tax refund when you are leaving the UK to settle or work abroad. Some people find it suitable to initiate the process on their own. However, for a seamless process, it is advisable to seek help from an expert. This is because tax affairs are mostly known to be complicated and you might not be able to handle them professionally and in an error-free manner when you are working on your own.
You need to consider the time limit that is given to you to complete the process. You have to identify and deal if there are any chances of overpaid tax or overpaid capital gains tax. The necessary explanation in both the scenarios is given in the following.
Overpaid Capital Gains Tax: You may have a chance to identify that you have overpaid capital gains tax. This is possible in a situation where you sold out any of your properties during the tax year and you have paid the tax within two months. This is considering the taxable income of the whole year. Now the taxable annual income is calculated to be less than before. You have overpaid tax and you can claim overpaid Capital Gains Tax.
Overpaid Tax: Such situations where people have overpaid tax in the UK happens generally when:
- the personal allowance is not used fully.
- The tax is prepaid.
- There is a change in an individual’s circumstances.
- There is a change observed in the residence of the individual.
Reasons You Be Due Tax Refund in the UK
When you are residing in the UK, you are normally eligible to get a personal allowance that is tax-free every year. In case you could not use the number of your tax-free allowances completely, you can claim a refund for that amount. A few other scenarios that make you eligible to claim a refund include the following:
- In this case, you are working in the UK and you are that employee who is associated with tax withheld at source. You are now a non-UK party.
- You are a UK resident and work as a self-employed individual. The annual tax liability is taken seriously and you have paid through payments on accounts. This makes your tax status change and the prepayments of tax will be considered more than your tax bill. This means you have overpaid tax. Now you can claim a refund.
The Bottom Line
Now that you have gathered a fair amount of information about leaving the UK tax refund, we can say that the process of claiming a tax refund is known to be tricky especially when your tax affair is complicated. You may begin by informing HMRC and other UK tax authorities, however, you might require an expert to complete the process promptly.
Hence it is recommendable to go through the required details of the process and identify whether you are in a position to claim the refund or not. Or simply get in touch with a professional to do it for you.
Disclaimer: The information about leaving the UK tax refund is provided in this blog including text and graphics in general. It does not intend to disregard any of the professional advice.