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Where Taxpayers and Advisers Meet

Moving to Spain for two years

pqtaxation
Posts:353
Joined:Wed Aug 06, 2008 3:38 pm
Moving to Spain for two years

Postby pqtaxation » Sat Apr 23, 2011 4:28 am

A person will be moving to live in Spain in September for at least two years and will be resigning from their job in UK in August.

Which form(s) should they return to HMRC to claim a rebate on PAYE paid in 2011-12 and to inform them they expect be non-resident for 2012-13?

pqtaxation
Posts:353
Joined:Wed Aug 06, 2008 3:38 pm

Re: Moving to Spain for two years

Postby pqtaxation » Sat Apr 23, 2011 11:17 am

... Which form(s) should they return to HMRC to claim a rebate on PAYE paid in 2011-12 and to inform them they expect be non-resident for 2012-13?
Further to my OP, I think I have been able to find the following answer on HMRC's website:

P50 – to reclaim (partially) PAYE in 2011/12 on stopping work

P85 - to tell HMRC you are moving abroad for at least one tax year 2012/13

I'm abroad currently and so only have the internet to help me. But I am not an expert on UK income tax and so if anyone with more expertise than me (not difficult) believes I have misinterpreted the HMRC guidance on forms then please post.

maths
Posts:8230
Joined:Wed Aug 06, 2008 3:25 pm

Re: Moving to Spain for two years

Postby maths » Sat Apr 23, 2011 11:34 am

I would suggest that you only initially lodge Form P85 asap and await HMRC's response. This is usually sufficient.

A residence determination will not, as such, be made by HMRC as this is for the taxpayer to determine and in due course if necessary the "Residence etc" Supplementary Pages of the tax return are completed. No need to distinguish between the 2011-2012 and 2012-2013 as you indicate (the P85 deals with it).

For info" the notes on the Form state:
Use this form to claim tax relief or a repayment of tax if: • you have lived or worked in the UK • you are leaving the UK, and • you may not be coming back or you don’t know when
you’re coming back or, • you are leaving the UK to work full-time abroad for at least
a complete tax year.
Do not fill this form in if: • you normally live in the UK and are going abroad for
short periods, for example on holiday or a business trip • you have completed, or are required to complete a
Self Assessment tax return for the tax year that you leave the UK (unless you are leaving the UK to work full-time abroad for at least a complete tax year for a UK based employer).
No necessity to file P50.

pqtaxation
Posts:353
Joined:Wed Aug 06, 2008 3:38 pm

Re: Moving to Spain for two years

Postby pqtaxation » Mon Apr 25, 2011 4:30 am

Thanks, maths. Very helpful as always.

pqtaxation
Posts:353
Joined:Wed Aug 06, 2008 3:38 pm

Re: Moving to Spain for two years

Postby pqtaxation » Fri May 31, 2013 7:52 am

Further to maths’ response to my query in 2011, the person has recently returned from Spain to reside in UK and expects to start with a new employer in June. I realise the person, who completed P85 on 2011, will have to advise HMRC of their return to UK. But is a letter sufficient or is there a specific form to complete and if so what is its number/name?

Peter D
Posts:10668
Joined:Wed Aug 06, 2008 3:37 pm

Re: Moving to Spain for two years

Postby Peter D » Fri May 31, 2013 10:43 am

Form P86 is required to be filed with HMRC. Regards Peter

pqtaxation
Posts:353
Joined:Wed Aug 06, 2008 3:38 pm

Re: Moving to Spain for two years

Postby pqtaxation » Sat Jun 01, 2013 2:17 am

Peter

Form P86 was withdrawn in 2010 - see EIM 42890/42900

There does not seem any replacement form as HMRC website says:

The form P86 Arrival in the UK has been withdrawn. You no longer need to complete it to tell HM Revenue & Customs that you've come to the UK. Follow the link above to find out what you need to do to start work and how you pay tax and National Insurance

Does anyone else any knowledge of this area?

etf
Posts:718
Joined:Mon Nov 02, 2009 5:25 pm

Re: Moving to Spain for two years

Postby etf » Wed Jun 05, 2013 11:25 am

Yes, you are right, form P86 has been withdrawn.

The completion of either:

- form P46 (Expat) for an individual who comes from abroad to work in the UK for a foreign employer, or

- form P46 for those employed by a UK employer with no foreign employment

will allow HMRC to update their records.

See Revenue notes copied below:

Since 1 June 2010 the form P86 has been withdrawn and new arrivals to the UK will be integrated into HMRC processes by existing means

Form P46 or P46(Expat) for new employees
CWF1 for newly self employed, or
SA1 registration process for customers who are not self employed but who need to complete a tax return


Kind Regards

etf

www.theexpatriatetaxfactory.com

pqtaxation
Posts:353
Joined:Wed Aug 06, 2008 3:38 pm

Re: Moving to Spain for two years

Postby pqtaxation » Wed Jun 05, 2013 8:26 pm

Than you etf

fyfin
Posts:5
Joined:Wed Aug 06, 2008 3:05 pm

Re: Moving to Spain for two years

Postby fyfin » Fri Jun 14, 2013 10:05 am

I apologise if I am slightly hijacking this thread but I have moved to Spain permanently as from 01.11.2012 and so I will complete a UK tax return this year. As under the EU rules (or Spanish rules) if I spend more than 182 days in Spain in a calendar year I am tax resident in Spain for that year so obviously in 2013 I am tax resident in Spain and will complete a return here.

Can I chose therefore to be tax resident in Spain from 06.04.2013 thus making a clean break from the UK side of things at that time. I suppose the question I'm asking is "Can you chose when you become tax resident so long as you comply with the 182(3) day rule?" I'm not bothered about how much tax I could save by choosing a particular date as the income figures are not great.

Also at what point should you advise the HMRC that you have moved to Spain e.g. in my wife's case, she receives a works pension (we are both under State Retirement Age) but she does not have to complete a tax return. The Pension Scheme administrators are aware of her change of address but we have never notified HMRC - should we do so?

Any expert advice would be greatly appreciated.


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