Hey

Not sure if any of you guys will have this info but I am aware that if I am leaving the country and my job and travelling round the world for 6 months probably end up living and working in Oz - I understand you can claim some tax back, which would be real handy for our trip (most websites say average is about £1,200)... do any of you guys know which company/website is best and wont take a high percentage off the total amount?

Tax Refunds.co.uk looks the best, but just thought I would ask

:)

(8 weeks yesterday to our trip!! So excited!!)

Thanks
Serendipity

Hiya,

Er... what type of tax would you be looking at claiming back? I presume you mean some sort of refund on your PAYE that comes out of your payslip every month, or a National Insurance rebate? I doubt you could get the latter for only a 6 month stint away. Or do you mean you will travel for 6 months, and then live in Oz on top of that?

Regardless, this should be something you can process yourself with HMRC. Just ring them up and tell them your situation clearly, and they will be able to advise you on whether you are entitled to a tax rebate. Don't let some agency cream off 10% of anything you might get without making that simple phonecall first!

cheers
Steve

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Owner, travelforum.org
My latest travels: Shikoku Pilgrimage

Hi Steve

Sorry yeah we have our working visas for Oz so planning on staying there for a year or 2 at least. When I applied for our working visas it advised you are entitled to claim back some tax for part the year you worked...

I will contact HMRC and seek some advice from them... thanks again :)

Serendipity

I am not an accountant but I suspect any tax refund would be based on the fact your paye tax deductions will have been based on your total projected earnings for the year. If you stop working halfway through the year you will presumably only earn half the salary and as such your tax liability will be reduced. Either because you remain under a particular earnings threshold or because your annual tax free allowance was spread over 12 months when in fact it needs to be allocated against the 6 months you worked during that year.

Tax usually works some time out of sync with and refunds being applied after the event. Speak to your local tax office or if you have one an accountant.

Henry :)

Just to say the above post is mine. I'm struggling a little with the whole log in / moderated posts thing. I'll stick to the day job :)

Henry

No worries Henry - I knew it was you :) Part of the joy of this forum is you don't have to log in every time you need to post - you can just do so as a guest and just answer a simple anti-spam question to validate your post. The downside is it might take a few hours to see your post on the forum as every guest post is moderated.

I think your advice has hit the nail on the head. Your UK tax code assumes in advance a year of employment at the same rate. If you only work half a year, say - or even less - then you are due back some PAYE tax.

Another thing to consider is National Insurance contributions (aka social security in other countries). I know as a self-employed person that you are due back some contributions to that if you spend a certain amount of time out of the country (the "Class-B" part, at least - whatever that might mean!)

These things are usually automatically adjusted if you move jobs, as is the assumed status. Regardless, as you say, contacting HMRC is the first port of call. It will inevitably lead to them sending you a form to fill out - maybe now, maybe tax year-end - and yes, payment will likely be retrospectively paid at the end of the tax year. But rather a few hours of head-scratching than a massive 10% of your windfall taken by someone doing it on your behalf!

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Owner, travelforum.org
My latest travels: Shikoku Pilgrimage