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People across the UK yearly choose to relocate in new parts of the world, due to numerous reasons, whether we are talking about a better-paid job, or a friendlier climate. This phenomenon is acknowledged and recompensed by the Government. The Mileage tax refund is a solution for those people relocating, to have some of the taxes paid on the UK’s territory back. There are some simple rules. First, the person in discussion must leave the country for a full fiscal year, at least, in order to benefit from this. Also, you might be interested to find out that the HMRC is offering quite a substantial tax rebate. Below are some things that those interested in this kind of tax rebate might find useful.

Basic rules

The fiscal law across UK is quite an easy to understand one. A person is considered a UK resident for tax purposes if they live on the country’s territory more than 183 days in a year. If you leave the UK for working purposes, you will not fall under the tax regulations, unless you are visiting the country for more than 90 days in a year. The fiscal year in UK begins from the 5th of April one year, and end on the 5th of April of the following year.

How to have your tax money back when leaving UK

Before your departure, you have to fill in a form, the P85 form, and send it to the HMRC. The form in discussion allows you to claim a tax relief as well as a tax refund, in the amount that you are entitled to. Those employed of under a Jobseeker’s Allowance must include in their papers the parts 2 and 3 of the P45 form. Those who are self-employed must include a self-assessment tax return form with their application.

Living abroad and UK income

Even if you are leaving UK territory, you will still be liable to pay different types of taxes, such as income taxes, rental income, wages and saving taxes. Those who benefit from a Personal Allowance will only pay taxes on the amount above them.

The double taxation Agreement

Many states tax as well the worker’s UK income. If the country in which you are a resident has a double taxation agreement, you won’t have to pay the taxes twice. However, if the taxes in each country differ, the resident is due to pay the higher taxes. On the other hand, each situation differs from the previous with which the HMRC in confronted, and for seeing what regulations your particular case falls under, you must first apply for a tax rebate and have your case analysed.

If the entire process seems a little difficult, we strongly encourage you to seek professional help in one of the many agencies that are specialised in consulting services for these kinds of individuals. Tax rebate services are highly appreciated all across UK, but only make sure that you collaborate with the best.  

 

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