Tax Advice For Britons Working Abroad

Tax tips for Britons working abroad

Have you claimed an income tax refund due in the tax year that you leave the U.K. to commence foreign employment. Although you are not obliged to claim an income tax repayment you should advise H M Revenue and Customs (HMRC) that you are leaving the U.K. to commence foreign employment.

Have you commenced to receive income from property/furnished lettings, even via an estate agent etc? If so, you may be able to claim any unused Personal Tax Allowances against the net income. The receipt of income from property will bring you into contact with HMRC who will also require full details of your foreign employment, visits to the U.K. etc.

Have you retained "comprehensive evidence" of foreign employment income and visits to the UK? e.g., Payslips/Employment Contracts/Bank Credit Notices and air flight tickets, boarding cards, passport stamps etc. Added to this, if any periods are spent abroad on holiday, you should ensure that you retain documentary evidence that you did spend time out the UK on such foreign holiday(s) e.g., holiday tickets/receipts for purchases made whilst abroad.

Have you reclaimed any income tax deducted from U.K investment income as there are deadlines for repayment claims?

On returning to the U.K. have you adhered to the "cessation precautions" necessary before your date of arrival in the U.K? i.e. closed offshore accounts prior to return to the U.K. Unfortunately the “old wives tale” still regularly circulates amongst the expatriate community that there is a "best date" for return to the U.K. otherwise foreign earnings in that tax year would automatically be taxable in the U.K.Have all monies owed to you under the terms of your foreign contract been paid to you before your final date of return to the U.K? Whilst earnings received prior up to the date of return are exempt, payments received thereafter such as bonuses, golden handshakes etc., are in fact taxable in the U.K. on the receipts basis of assessment. If you are at all unsure of your tax position????Take specialist advice concerning your foreign employment before, during and at the end of the contract and in particular before any contact is made with H M Revenue and Customs.