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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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I wanted to know if I go traveling from the 1st of April

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Hi, I wanted to know if I go traveling from the 1st of April 2020 for 6 or 7 months will I have to pay income tax when I return and i am back at work or will I be exempt until I reach my 12,500 tax free allowance?
Assistant: Which tax year are you filing for?
Customer: I suppose that would be next year?
Assistant: Anything else you want the Accountant to know before I connect you?
Customer: No

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

You are entitled to tax free allowance of £12,500 in the current tax year.

I presume you are at work now and that when you leave work for your travels you would be issued with a P45.

That being the case, when you return to the UK and start work again, you would continue with your tax free allowance until such time your earnings have surpassed the tax free pay of £12,500.

The same scenario would apply for next tax year.

My aim is to give you aprofessional service. I hope this is helpful and answers your question.

Please remember to rate my service by selecting the 5 stars at the top of the screen before you leave JA today. If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

Customer: replied 8 days ago.
Thank you for your fast reply. I am currently on a zero hr contract which allows me to go away for long periods of time so my job will not be issuing me with a p45. My plan is to leave at the beginning of the financial tax year for 6 months, when I come back start working with the same company until I have reached the £12,500 and then leave again. Is this something I am able to do or is it not as simple as that?
Customer: replied 8 days ago.
I will be earning around £3500 a month, will all of this money go into my pocket and not be taxed. (apart from my pension)
Customer: replied 8 days ago.
roughly around three and a half months without being taxed, is that how it works?
Customer: replied 8 days ago.
Does that make sense?

Thank you for your reply.

Your tax free allowance is given to you spread over the year in twelve equal instalments roughly £1,042 per month. Earnings over this figure would be taxed under PAYE.

If you work for 3 months before going abroad you would have used £1,042 x 3) £3,126 of £12,500 tax free allowance and the rest of your allowance is available to be used when you come back after your 6/7 months trip.

I hope this is helpful and answers your question.

If there are no more issues, I will appreciate if you would kindly rate my service by selecting the 5 stars at the top of the screen before you leave, to ensure I get credited for it by Just Answer today.

Customer: replied 8 days ago.
Thank you for your reply. That is helpful. Just one last question, What happens if I am out of the country for 9 months and I come back in January, how would they calculate that? Would it just roll over to the following tax year?

Thank you for your reply.

Our tax year runs from 6 Apr to 5 Apr following year. Even if you returned in Jan/Feb 2021 you would be returning within the tax year.

I hope this is helpful and answers your question.

If there are no more issues, I will appreciate if you would kindly rate my service by selecting the 5 stars at the top of the screen before you leave, to ensure I get credited for it by Just Answer today.

Hi there

Just checking to see if you need more clarification/information or have I answered your question.

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Many thanks

Customer: replied 8 days ago.
To clarify, if i haven't worked for 6 months from the start of the tax year, and then start working in October I will not get taxed on the first £6000?

Thank you for your reply.

If you get a normal tax code of 1250L (equivalent to £12,500 for a full year) and you start work in month 6 then you would have tax free pay of (1250*6) £7,500 before your pay is taxed.

I hope this is helpful and answers your question.

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