Starting a new business? Get 40% off our accountancy services for 3 months! 😎

x

There’s so much to think about when you move abroad. From making last minute arrangements, to packing up and waving goodbye to friends, it can be as stressful as it is exciting.

The last thing you’re likely to think about when making your big move is your tax situation in the UK, but you need to let HMRC know you’re leaving, not least so you can claim a rebate on any tax that has been overpaid.
 

Do I need to tell HMRC if I leave the UK?

How do I tell HMRC that I’m leaving the UK?

What if I leave the UK part way through the tax year?

What happens to my tax status if I return to the UK for a visit?

Can I claim any tax relief if I leave the UK?

This depends on how long you’ll be away. You don’t have to do anything if you’re only popping on holiday for two weeks, but you’ll need to tell HMRC if you’re:

Why do I need to tell HMRC that I’m leaving the UK?

Leaving the UK for a tax year or longer can affect how you pay tax on your earnings. Keeping HMRC in the loop enables them to work out if you’re still classed as resident for tax, as well as calculating whether you still owe tax, or are owed a refund.

Even if you leave the UK, you may still be classed as a tax resident. There are several factors which determine residency status, including:

Tax residency is important because it determines where and how you pay tax, and can help avoid paying tax twice on the same income. If you’re relocating to live overseas but still earn income from the UK, notifying HMRC that you are leaving helps ensure that you pay the correct amount of tax, and to the right tax authority.

The process for this depends on whether you normally send a Self Assessment tax return to HMRC or not.

You might need to send both if you’re starting a new full-time job abroad for a UK-based employer and expect it to last for a minimum of one tax year.

 
This helps HMRC calculate how much tax you should pay, and in which country you need to pay it. If you haven’t lived in the UK for 3 years or more, you will generally be considered as ‘not resident and not ordinarily resident’.

It’s a very good idea to check if there’s a double taxation agreement in place between the two countries if you will be a tax resident in both. You’ll only need to pay tax in one country rather than both if there is one in place – another reason why it’s so crucial to notify HMRC!

You’ll normally only need to pay tax on the income you received during the time you were in the UK. HMRC will use your completed P85 Form or tax return to work out whether or not you’re owed a refund, or if you need to pay more.

I’m due a tax rebate from HMRC. When can I claim it back?

You can apply for a tax refund as soon as you stop working in the UK, although it might complicate things if you need to return for work before the start of a new tax year.

If you are planning to claim a tax rebate while you’re on an extended holiday or taking a gap year, make sure you stay in your new country for at least one full tax year. You won’t be eligible to claim your UK tax back otherwise.
 

Comprehensive tax return services

From only £24.50 per month

Learn more

You can return to the UK for visits, although your tax residence status depends on why you visit and how long you’re in the country.

You’ll normally be able to visit the UK for up to 90 days in a tax year, as long as no more then 30 of these are spent working.

 
If you decide to come back to the UK permanently, you’ll need to tell the other country’s tax authority to make sure you’ve paid enough tax there. The last thing you want is to end up in any tax-related hot water in either country.

There are actually quite a few things you can claim tax relief for. This is why it’s well worth getting everything right, so you don’t end up paying more tax than you need to. You can commonly claim tax relief for:

Learn more about our online accounting services for businesses. Call 020 3355 4047 to chat to the team, and get an instant online quote.

About The Author

Elizabeth Hughes

A content writer specialising in business, finance, software, and beyond. I'm a wordsmith with a penchant for puns and making complex subjects accessible. Learn more about Elizabeth.

More posts by this author
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Read more posts...

What is a Non-Established Taxable Person for VAT?

There are special VAT rules in place for online sellers who are classed as non-established taxable persons (NETPs), and use an online…

Read More

The Accountancy Partnership – Our Positive Reviews

Here at The Accountancy Partnership, we’re proud of our customer reviews The reviews we receive from our customers show how hard we…

Read More

What Type of Legal Structure Should I Choose When I Start a Business?

The structure that you choose when you start a business affects how the business operates, the amount of tax you pay, how…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.

Bookkeeping

You will receive our bookkeeping software Pandle for free, as part of your package.

You can use this to complete your own bookkeeping, or we can provide a quote to complete your bookkeeping for you.

Please select and option below:

I will do my own bookkeeping
I want you to do my bookkeeping

Call us on 020 3355 4047 if you’re not sure.