Tax implications while travelling overseas

[Goldman]

I'm looking at the possibility of taking some time off work next year to go travelling around the world. Based on work commitments, this is likely to happen by June 2012. I expect to travel until at least the end of 2012...

In terms of taxation, I'm trying to get a handle on what may be the best approach to take:

1. Look for a tax return based on my tax paid for the year to date. or
2. Declare myself a non-resident as I will be out of the country for a period of > 6 months

In terms of option 1, I would expect that I will receive tax back. Has anyone experience of this process and what I would need to do?

If I go with option 2, are there any implications for me as a citizen returning (do I lose certain entitlements to healthcare?; if in the event that I struggle to obtain a new job, will I be entitled to social welfare etc.). Has anyone experience of the process or steps involved with option 2?

Obviously I'm going to contact the Revenue separately, but I just want to get a general indication and as much information as possible in advance. I haven't given salary details in the thread, which probably limits input but any information would be appreciated (DM if you need more info)... I think the implications for tax on shares may need another thread

Thanks,
Goldman

 

[elcato]

For option 1) you have a choice of waiting till the end of the year and based on your p60 you will get a tax refund OR you can fill in a p50 form and tell them you will not be working for the rest of the year and if they accept this (no reason not to) they will refund you sooner. I'm not sure what you mean exactly in option 2 but your welfare entitlements are based on the year previous to your claim so I don't think there will be a problem in benifits while waiting on a new job.

 

[T McGibney]

You can't just declare yourself a non-resident. Tax residence rules are complicated at the best of times but it takes a lot more than 6 months absence from the country to be non-resident for tax purposes.