If you’re moving to Australia, whether it’s permanently or to work full time, for at least one full tax year, then you could be due for a large tax refund. Getting your tax rebate is easier than you may think, however, many people don’t know about it and therefore miss out on a substantial tax refund.
So how do you claim tax back, if you’re moving to Australia? Well before moving you will first need to fill in a P85 form. If you’re employed or receiving employment benefits it also helps to send part 2 and 3 of your P45.
If you’re self employed then you’ll need will need to send a self assessment tax return. Some PAYE employees will need to submit a tax return as well for example if you are going to be working for a UK based employer while in Australia.
You cannot use HMRC’s online services to tell them you are leaving the UK, you must send the tax returns by post. However you can fill out the P85 form online, you can also go through a UK tax back accountant to help you if you’re unsure of what you need to send.
Once HMRC has received your documentation they will work out if you are owed any tax back, for the year in which you leave the UK and then issue you with a refund.
Personal Allowance Tax
Personal allowance tax grants people free UK income if they have worked in the UK government or are a current citizen of a country within the European Economic Area. The tax free Personal allowance currently stands at £11,500, meaning you will only be taxed on any money over that amount for any UK income you receive, while living abroad.
National Insurance
While you don’t have to carry on paying national insurance after you’ve left the UK, you still can and indeed probably should if you attend to move back to the UK at some point. If you’re planning to receive a state pension then it’s usually a good idea to continue paying your national insurance.
Things To Know
The tax year in the UK runs from April 5th to April 6th the following year, if you are physically present in the UK for at least 183 days per year, then you will be considered a UK resident. Which means you’ll be responsible for paying tax.
When you leave the UK you will be treated as a non-UK resident from the date that you leave. Although if you return to the UK for more than 90 days per year, then you can still be counted as a UK resident, even if you live abroad.
If you still have UK incomes like pensions, wages or rental incomes then you will still be taxed for it even if you live abroad. Australia does have a double taxation agreement with the UK which means you won’t have to pay tax twice for income tax. If you are charged then you can apply for a tax refund.
