Are you currently in the UK on a Working Holiday Visa or are arriving soon? If so then you will need to know about your tax liabilities.
Table of Contents
How Will My Income Be Taxed?
The common way those who are employed in the UK are taxed on their income is through the Pay As You Earn (PAYE) system. This is the simpler way that the Inland Revenue can tax you, where your employer handles the process on your behalf. However, as a Working Holiday Maker, there is a high chance that you will be placed on an Emergency Tax Code.
This is common where you are fast tracked so that you can begin work as soon as possible.
Am I Paying Emergency Tax?
To find out whether you have been processed under the emergency tax code is fairly simple to identify. By looking at your payslip which you will receive from your employer you can see your tax code and the emergency tax code is either of the following:
- 1060L W1
- 1060L M1
- 1060L X
The common cases where anyone is placed on an Emergency Tax Code is when the individual is starting a new job, no longer being self-employed or receiving benefits from either the State or company.
Filing Your Return
As a Working Holiday Maker, your work pattern is most likely not going to be as common as others employed in the UK. Working for short periods at a time and then embarking on your travels across the country will usually see you earn considerably less than the Personal Allowance figure, £10,600 for 2015/2016 Financial Year.
As a result, any tax you have paid from your earnings will be returned to you when you file your Tax Return. To file your claim you will have to do it either do it at the end of the Financial Year (FY) or when you have stopped working and will not be working for the rest of the FY.
To discuss this further get in contact with our agents now!