Common UK tax questions for Expats
Tax is a confusing thing at the best of times but when you’re looking to move abroad then it takes on a whole new level of confusion. To try and make things easier for UK expats living overseas we list and answer the most common questions regarding taxes.
Now that I’m no longer living in the UK will I still need to pay tax there?
If you have left the UK to live or work full time abroad and are no longer UK resident, you might still be liable to pay tax on income from the UK. To check whether you will need to pay tax check here: http://www.hmrc.gov.uk/international/leave-uk.htm
When I leave the UK can I get a tax refund?
A lot of the time the answer is yes and that you are likely to be owed a tax rebate. Simply put, if you worked or were employed in the UK you will most likely be eligible for one. You should ensure that you keep all relevant documents from your employer such as a P45 and look to see if you paid tax under the PAYE scheme. It’s also a good idea to get in direct contact with the Inland Revenue.
Can I keep paying National Insurance Contributions?
Yes, you can by paying voluntary National Insurance contributions when you leave the UK. These will ensure you are still entitled to Welfare benefits, State Pensions and also helps contribute to the NHS too. It’s a good idea to do this if you plan to only move away for a temporary amount of time and even if you plan on leaving permanently its worthwhile as you be entitled to UK healthcare when necessary. To get the full benefits of this though, you need to have paid up to 30 years worth of qualifying contributions. It’s a good idea to seek expert advice when considering National Insurance contributions.
I own a house in the UK and am renting it out but live abroad, do I have to do/pay anything?
Yes you will. Most expats choose to rent out their property in the UK rather than sell as they take the precaution of having somewhere to return to should their expat venture go awry. Once you leave the UK you fall into the Non-resident landlord scheme which is used by the HMRC to tax the rental income of non-resident landlords.