ADMINISTRATIVE PROCEDURES
Starting A New Life: Moving Abroad To New Pastures
Each year, a significant number of people leave the UK for other countries. Some depart the UK temporarily, while others move permanently. Read this article to discover the issues that must be resolved before moving abroad to ensure a hassle-free experience.
What You Must Deal with Before You Move Abroad
As well as saying goodbye to loved ones and dealing with personal possessions, you must tend to several governmental affairs before moving abroad from UK. These could include any of the following:
1. Local Council
Contact will need to be made with the local council to finalise council tax bills. A forwarding address should be given to receive any outstanding bills. It will also terminate the account and prevent further bills going forward in the future. Details of the local council are available through this government website.
2. Tax
To ensure the correct tax is paid and claim tax back (if overpaid), the HMRC must be informed of a person’s intention to move abroad. Notification is required even if the move is temporary. The notification method will depend on whether or not a person usually completes a tax return via self-assessment.
If You Complete A Tax Return Via Self Assessment
The HMRC can be informed through the self-assessment tax return by completing form SA109 (the resident section). The form must be sent by post; online services cannot be used in this instance. However, the self-assessment part of the tax return can continue to be completed online.
If You Do Not Complete A Tax Return Via Self Assessment
Those still in the UK and yet to leave the country must download and complete form P85 offline. The form provides details of where to send the application. However, people who have left the country should fill in form P85 online. As part of the application, Part 2 and Part 3 of the P45 must be attached (obtained from the previous employer or the JobCenter Plus if receiving JobSeekers Allowance).
Non-residents of the UK will no longer pay any taxes once they leave the UK (unless they earn a UK income). However, people who have left the UK but are classed as UK residents may need to continue to pay taxes in the UK. You can take the government's online "Automatic UK test" to check if you are considered a resident for tax purposes.
3. National Insurance (NI) Contributions
It is possible to continue to pay NI contributions for those who are planning to return to the UK at a later date. Paying NI contributions will enable people to claim benefits and obtain a state pension during retirement. This guide provides more information on how to go about paying NI.
4. Social Benefits
The majority of social benefits are aimed at people living in the UK. But certain benefits are available to UK citizens who have moved abroad. These are listed below.
- • New Style Job Seekers Allowance (JSA): this can be obtained up to 3 months after arriving in the new country and only if certain conditions are met. You can read more about in the link above.
- • Statutory Maternity Pay (SMP): This benefit is available to those who work in the EEA or Switzerland and if a person works for a UK employer. It is also open to those who work in any other country as long as their employer pays NI contributions in the UK for their employee.
- • Maternity Allowance: Those who fail to obtain Statutory Maternity Pay (SMP) can apply for Maternity Allowance from the governing authorities of the new country. It is only available in countries where the UK has employment-related ties or treaties.
- • Child-Related Benefits, like tax credits, Child Benefit, and Guardians Allowance are available in the EEA and Switzerland.
- • Statutory Sick Pay (SSP): for those working for a UK employer in the EEA or Switzerland. Also open in other countries if a person's employer pays UK NI contributions for their employee.
- • Industrial Injuries Disablement Benefit (IIDB)
- • Benefits for the disabled and their carers: Attendance Allowance, Personal Independence Payment (PIP), Disability Living Allowance (DLA) for adults, Adult Disability Payment, Child Disability Payment, Disability Living Allowance (DLA) for children, and Carer's Allowance.
- • Bereavement benefits: Those collecting the Widowed Parent's Allowance and Bereavement Support Payment will continue to obtain it no matter where they move. Anyone who has already moved overseas can still apply.
- • Winter Fuel Payments: Whether you can still access this benefits once you move abroad would depend on several factors. For example, when you moved and where you were born. Follow this link for more information on eligible countries, application process, waiting times, and a step-by-step guide.
5. Pension
The UK state pension is available to anyone who has reached the state pension age and has made enough National Insurance Contributions. It is also possible to make an application 4 months before reaching the pension age (currently 66).
Payments are made every 4 or 13 weeks (as chosen by the applicant) into a bank account in the UK or the new country. The overseas country may charge tax on the pension payments, and depending on income, those with a UK residency may be liable for tax. Any changes in circumstances can be reported through this link.
6. Student Loans
Those paying off a student loan must inform the Student Loans Company (SLC) of their intention to move abroad. Usually, student loans are collected and paid through the tax system via HMRC. Since the HMRC will no longer be involved, an agreement will need to be reached with SLC to continue to pay the loan. Contact SLC to find out more.
7. Citizenship and Voting
Your British citizenship is not affected by your decision to leave the UK and move abroad. This means you can still vote in UK elections. To do so, you must be registered to vote and renew your registration yearly.
People living abroad can vote in the national election and referendums, but not in local elections. Voting must take place by proxy or through the post. A proxy vote is where someone in the UK votes on behalf of the individual concerned. For more details on voting while abroad, read this UK government website.
A New Life With Great Possibilities
There are all sorts of reasons why people leave the UK. Some do so for work purposes. Others migrate back to their home countries, while many wish to retire abroad. There is a great deal of administration and paperwork that requires completion before leaving, especially in relation to tax. If you are emigrating, we hope this guide has been helpful and wish you every success going forward.