Am I due a Brexit tax rebate?

The decision to leave the European Union has raised a vast number of questions for UK citizens, British expats and foreign nationals alike.

The complexities involved in negotiating the terms of Brexit are, unsurprisingly, guaranteeing that this will be a lengthy process. This seems to leave many UK tax payers up in the air in terms of deciding where to live and work.

One thing that hasn’t changed as a result of the Brexit vote is the UK tax relief system. It still stands that if you have worked and paid tax in the United Kingdom and are leaving, then you are entitled to tax relief for a variety of reasons. If you don’t take into consideration how Brexit could affect your tax position you could lose out on hundreds and in some cases thousands of pounds.

Brexit tax rebate for foreign nationals

If you are a foreign national living in Britain, but are planning to move elsewhere or return to your home country, these tax relief rules also apply to you. The key is that you pay UK income tax on your earnings and your nationality is not a factor if you have paid too much.

It may be easier to organise your UK tax rebate before you leave, although we have many clients that we help after they have moved home to another country. Most tax reliefs can be backdated for four tax years ( 5th April to 6th April), so if you didn’t know about this before you may still have time to claim. Not every claim requires evidence, so don’t worry if you’ve shredded the documents that were to do with your old British job, you may still be able to claim.

British Nationals leaving the UK and British Expats living abroad

While we appreciate that emigrating to another country comes with its own enormous to do list, it is worth adding ‘get UK tax rebate’. Why leave your overpaid tax to the UK Treasury?

If you are already living as a British expat, it’s not too late as most tax reliefs have a four year deadline. UK non resident tax is a concern for many expats and is definitely worth knowing more about due to its importance and complexity. It’s not easy to negotiate the process with the hurdle of time differences, but we regularly work around this without any hassle.

Our free expat tax return guide is a great way to find out more about how the UK tax system affects you after you have left.

What would I be due a Brexit tax rebate for?

The UK Tax Office tackles claims on a case-by-case basis, so there is no straightforward answer to this. It entirely depends on your personal situation. This is why there are so many surrounding tax reliefs; they need to cover every eventuality.

We have over 15 years’ experience helping UK taxpayers who are leaving the UK to claim their maximum UK tax relief amount. The most commonly claimed tax reliefs in these circumstances are:

• Work expenses
  Such as: Trade Union or professional body subscription fees, tools and equipment, uniform, using your own vehicle for work journeys.  If you have paid these essential work expenses yourself and not been reimbursed by your employer, then you are fully entitled to reclaim the tax you have paid on those items.
• Pension income from the UK
  You can reclaim the tax on your UK private pension income at the highest rate of tax you pay. In addition if you pay tax on a UK pension and are no longer living in the UK you could be owed a non resident pension tax rebate.
• Personal Allowance
  In the year you leave the British Isles, if you have not used up your full Personal Allowance entitlement, then you are entitled to a rebate.
• Being a non-resident landlord of UK property, or having non-resident status.

How much is a UK tax rebate claim worth?

As previously mentioned, it is entirely dependent on your own situation and your final rebate amount considers many factors. You can use our UK tax back calculator to help work out what you may be owed in the tax year you leave the UK.

Will I need a lot of paperwork to make a UK tax relief claim?

What you will need to do does depend on what is possible in your own set of circumstances.

You will normally need a P85 or UK tax return and your P45, which your employer will give you when you leave your job. The P85 form has all the important information regarding the date you leave Britain, your next employment in your new home and your UK residency status. If your P45 has gone missing, it doesn’t mean we can’t continue your claim, it just means that it can take longer to complete.

In terms of the different tax reliefs, they all require different levels of evidence. Some need receipts or travel logs, and some don’t. We can advise you about this during our initial chat.

It is important to remember that HMRC cannot just return any money you are owed. You have to officially apply.