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Preparing to leave... What do I need to do now?

Discussion in 'Teaching abroad' started by zdaea, Mar 22, 2016.

  1. Roseea123

    Roseea123 New commenter

    Hi all,
    Don't know where to start! We've decided we will be going abroad and contract is 2 years. So what now! I don't want to return (if I return) to a tax bill! How do I go about it? Do I need to inform banks/mortgage? I really feel overwhelmed! Any advice will be appreciated. Feel free to pm me. Thanks
  2. musikteech

    musikteech Occasional commenter

    if you're paying tax abroad, why would you need to pay tax when you return?
  3. Roseea123

    Roseea123 New commenter

    No. Don't think you understand my question or situation. I'm on about becoming a non uk resident. If you are still classed as uk resident then you pay tax. I won't be paying tax in ME as there is no tax on salary. I'll just go to a solicitor and an accountant because I need to do this properly.
  4. musikteech

    musikteech Occasional commenter

    I think I had to do this once. I think you just need to call the tax office and they will send you a form. It depends how many weeks in the year you will be out of the UK whether you're classed as resident or non uk resident I think
  5. 576

    576 Established commenter

    Folasade91 and zdaea like this.
  6. Carlsberg

    Carlsberg New commenter

    Thanks for that 576.
    Very helpful.
    When I left 19 years ago(!) I did not inform HMRC- through ignorance rather than intent, I should add.
    Anyone else in a similar position? Have kept NI payments up to date
  7. Roseea123

    Roseea123 New commenter

    It states that certificate need to be signed by a solicitor or notary public in the UK too. So if I only do that, it looks like I then just send it all to the embassy myself. Thanks.
  8. lovely.lady

    lovely.lady Occasional commenter

    You can apply to become ordinarily non resident. You should do this prior to leaving and you will then get a tax rebate at the end of the tax year because you will not have used your tax allowance. Well, at least thats what happened to me!
  9. 576

    576 Established commenter

    Resident and non-resident are the tax terms.
    Ordinarily non-resident or ordinarily resident are terms used by NHS.

    The criteria for and implications for these are NOT the same.
  10. dumbbells66

    dumbbells66 Lead commenter

    576, can you clear something up for me then, as you seem to know a bit about this. i left the UK, and probably through negligence on my part did not fill out this form. i have no assets in the UK (i.e a house), have not earned anything in the UK for nearly 10 years. why would i have to fill this form out if i do not, or have not earned any money in the UK for so long?
  11. stopwatch

    stopwatch Lead commenter

    The form that you need to fill in is a P85 which can be downloaded from the HMRC website.

    Contact your local National Insurance office too and tell them you want to elect to pay class 2 whilst overseas, by direct debit. They will send you a form to fill in.
    576 likes this.
  12. the hippo

    the hippo Lead commenter Community helper

    Yes, it does cost money to have the services of an accountant or a solicitor. On the other hand, it could cost you even more if it all goes pear-shaped.
  13. stopwatch

    stopwatch Lead commenter

    I also believe that you now have to be overseas for 2 years minimum in order to establish/maintain non-resident status for tax purposes.
    I am guessing that the way this works is that you don't pay tax on your ME income unless you return earlier than the 2 years in which case they may ask you to pay your tax retrospectively. I am guessing there will be someone on this forum who can further elucidate on this.
    You are OK transferring your ME income to UK without paying tax on this provided the P85 is sent in.

    What are you doing with your property? if you are renting it, there will be implications from a number of angles.
  14. 576

    576 Established commenter

    I see no benefit if you left 10 years ago.
    However for someone leaving now from full-time employment it will almost certainly result in a tax rebate.
    Also for anyone leaving and renting out a house in the UK while they're gone then completing NRL1i is the easiest way to ensure that they earn that rental income tax-free. Though they may then have to complete a tax self-assessment form. I got away without doing this on my first stint abroad, I then found myself back in the UK for a year before my current stint abroad and the first time I escaped the dreaded self-assessment, the second time not so lucky.

    Having said that as horrendous as the first one is - once you know what info you need if you collect the information throughout the tax year (I use excel to do this) then subsequent ones are much less of a headache.
    stopwatch likes this.
  15. Roseea123

    Roseea123 New commenter

    So I will need to complete P85 and NRL1?
    @stopwatch can I still pay towards NI?
    Also would I still be able to contribute to pension or best saving it and paying into a Private pension? (not sure if that's allowed)
    Thanks all for the info!
  16. 576

    576 Established commenter

    Yes complete P85 but you can't do that till you have P45.
    If you have property to rent out also complete NRL1i and find a good agent - renting privately may seem a better idea but I've had 2 colleagues whose tenants have given notice to vacate while they're out here - far better to pay someone a % of the rent to deal with all hassles for you.
    You can still pay your NI - though it's worth checking if it's worth it - depends on NI conts you already have and how long you anticipate being out of UK - HMRC in Newcastle are awesome and will help you. I pay class 2 which is something like £2.80 a week.
    You can't pay into TPS once you leave the UK.
    You also can't open a private pension in the UK whilst you are outside the UK. Same goes for bank accounts. You need to check the pension situation with your new school - both my overseas postings came with pensions which I got/ will get as a lump sum upon leaving the country.
  17. 576

    576 Established commenter

    What you also need to do is begin the de-cluttering process.
    Making decisions about what you want to a) ship out with you b) leave behind in storage c) part with.
  18. stopwatch

    stopwatch Lead commenter

    Regarding NI, for the sake of £12.00 a month it is worth doing it anyway. The government constantly move the goalposts (like changing it from 30 years to 35 years) so best to have as many years as you can.
    You may be thinking 'what's the point, I am only going overseas for 2 or 3 years' but many people (like me!) think the same and end up overseas for 15 years plus.
  19. Roseea123

    Roseea123 New commenter

    Thank you so much all. Feel very informed and ready to start sorting things. Last week I was in limbo as to whether this will work out!
  20. Kartoshka

    Kartoshka Established commenter

    Playing devil's advocate - but if the goalposts are constantly moving, who's to say NI contributions will count for anything in the future? So it could just be £144 x years down the drain.

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