Refunds for Business Owners Leaving the UK

by | Apr 30, 2024 | Accounting, BLOG, Business, HMRC, Tax

compliance

If someone running a business permanently leaves the UK, they may be eligible for refunds and related matters.

Find more

Income Tax Refund: 

  • If you’re self-employed or an owner of a limited company and have paid income tax, you can apply for an income tax refund. The amount refunded depends on the individual’s or company’s tax situation in the year prior to departure.

  • You’ll need to submit appropriate income tax declaration forms to HM Revenue and Customs (HMRC), such as the Self Assessment Tax Return, to determine the refund amount. 

Income tax
national Insurance

National Insurance Contributions (NIC) Refund: 

  • Self-employed individuals or owners of limited companies may also need to pay National Insurance Contributions (NIC). If the amount paid exceeds the actual liability, a refund can be claimed. 
  • You’ll need to apply for a refund from the National Insurance Contributions Office, providing relevant payment records and evidence of departure. 

Value Added Tax (VAT) Refund: 

  • If registered for Value Added Tax (VAT) and have declared VAT to HMRC in the preceding year, you may qualify for a VAT refund. 
  • Before departure, you need to submit the final VAT return to HMRC and follow the relevant procedures to apply for a refund. 
VAT
Company

Capital Gains Tax (CGT) Refund on Sale of Business Assets: 

  • If you’ve sold business assets such as shares or property and paid Capital Gains Tax (CGT), you may be eligible for a partial or full refund.

     

  • You’ll need to submit a CGT declaration form to HMRC to confirm eligibility for a refund. 

Others：


Refunds for Other Business Costs and Expenses: 

  • You can apply for a refund of unused business insurance premiums, rent, or other business expenses. 
  • Prepare relevant invoices and records as evidence for your refund application.

     

Legal Obligations on Business Closure: 

  • Closing business registrations, such as cancelling company registration or terminating commercial leases, may involve legal obligations and procedures. 

For business owners leaving the UK, it’s advisable to consult with an accountant or tax advisor before departure to ensure compliance with all legal requirements and maximize refunds.