For those who are requesting income payments and are currently resident outside the UK, to avoid payment of emergency tax and the need to reclaim the tax, we will require confirmation from HMRC of the UK tax code to apply to these income payments. This needs to be supplied as either a Tax Coding notice or a certificate of non-residence. Please note this must be supplied prior to the payment being made.
If you believe that your client should be able to draw income tax free due the existence of a Double Taxation treaty between your resident country and UK, HMRC have a Double Taxation Treaty Relief Form to apply for tax relief. When completed, this form usually gets sent to the tax authority in your country of residence for confirmation of eligibility before the tax authority sends the form either to HMRC directly or to you to forward to HMRC. Following this, HMRC should issue a certificate of non-residence, which will enable us to pay the income on a Nil Tax code. The sooner you are able to start this process the better, where you are dealing with HMRC and other tax authorities, there can be a wait for receipt of this certificate, and we will be unable to pay the income tax free without this tax confirmation.
You may find this HRMC page to be of assistance
If requested, we can pay the tax free cash element of the payment before any coding or certificate of non-residence is received.
We will always do our best to assist our clients as much as we can, however we are not able to discuss an individual’s tax affairs with HMRC as we do not have authority to do so. We are not authorised to provide tax advice and would always suggest you seek regulated tax advice in the country to which you are resident prior to receiving any payments.