Are you planning to leave the UK? You should know that you are entitled to a tax refund when you leave the country. This is especially true if you leave part-way through the tax year, where any chance of you receiving your full tax-free allowance is lost.
Since your tax-free allowance is divided evenly throughout the year, you can claim for the months that you are out of the country. For example, if you worked and paid tax for 8 months and had to leave the UK, you can claim a rebate for the remaining 4 months.
Considering that tax was deducted from your payroll, you should take advantage of any opportunity to get it back. Any amount you receive could pay towards your adventure outside the UK.
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FAQ On Tax Refunds
Are you eligible for a tax refund when leaving the UK?
Yes. Anyone who worked and paid income tax is eligible for a tax rebate when they leave the country for an extended period. It won’t hurt to lodge an application.
If you leave the UK for good, can you claim all your tax back?
The answer will depend on how much tax you paid based on your income for each previous tax year. What is a certainty is that, from the tax year in which you leave the country, you are due a tax refund.
How your tax refund is calculated when you leave the country
Refer to your P45 forms and check out your income and tax figures for each tax year, and then use these numbers with a tax rebate calculator.
Can you claim tax rebates for previous years?
Yes. You can claim tax rebates for six years in arrears. Use your P60 forms for previous years to check if you overpaid tax, so you can apply for a tax rebate.
When can you claim back your tax rebate?
You can apply for a claim as soon as you stop working.
Regardless of the reason that you are leaving the UK, you should take advantage of a tax rebate. It is important to note, however, that this only applies if you DO NOT return to the UK to work before 6 April, which is the start of the tax year.
If you plan to claim back tax when you take a gap year or an extended holiday, make sure your stay outside of the country will last one full tax year to ensure your eligibility to claim back tax.
Because of the complexity of the UK tax system, it will be to your advantage if you consult with tax experts. Work with someone who can help you get as much of the tax rebate you deserve.