One thing to consider before moving abroad is claiming your tax back. Many people leaving their home country are unaware that they may be eligible to claim their tax back, which can often be worth a significant amount.
Every year you are allocated a certain amount of tax credits. If you leave the country during the year and do not avail of all your tax credits, you can claim a refund on both your unused tax credits and a refund of the tax you have paid that year. This is a great way to pocket some extra money before moving abroad.
How to Claim a Tax Refund
There are numerous different companies and websites that assist people in getting their tax back. It’s generally quite simple to find out if you are owed money, and how much you will be refunded. For most, all you will need is a wage statement (such as a P45) from your employer, outlining how much tax you have paid. Once you provide these forms for a tax refund company, they will be able to inform you how much you are eligible to receive.
To claim the money back, you can contact your local tax office. However, this can involve lots of paperwork and can be time consuming, which is why many people choose to avail of tax refund companies to do it for them; usually for a small percentage of the money they are refunded. Tax refunds usually take a few weeks to be processed and sent to you, but this will depend on the country you are claiming from.
Keep in mind there is usually a time limit to how long you can wait before claiming tax back (e.g. 6 years), so do not wait too long after you have finished working in your home country.
For a list of companies that provide tax refund services, see our directory.