Question
“I was granted my Spain Digital Nomad Visa yesterday as a UK employee, can anyone tell me how I apply for the No Tax code please and also whether my employer needs to do anything?”
Answers
“I would advise your payroll dept to ensure the No Tax code gets applied straight away, and also update your details with HMRC. If you only advise HMRC, they’ll probably take about a year to action it (happened to me when I lived in Greece).”
“Employers aren’t allowed to change the tax code without HMRC notification, but they come through quite quickly now RTI is in place.”
“You have the option to file a claim online or utilize the P85 form to inform HMRC of your departure from the UK, aiming to reclaim taxes paid on your UK employment income.
Eligibility for this claim includes those who have resided and been employed in the UK, those who have left the UK with no intention of returning, or those who are employed overseas on a full-time basis for a minimum of one complete tax year.”
Conclusion
For UK employees moving to Spain under the digital nomad visa, understanding how to apply for the No Tax Code (NT) code is essential. It involves promptly informing your payroll department and updating your details with HMRC to avoid delays.
The shared experiences underline the importance of taking action with HMRC and the potential benefits of engaging an immigration lawyer to navigate the process.
Additionally, the P85 form emerges as a vital tool for those leaving the UK, allowing claims for tax back under specific conditions, such as working abroad full time for at least one full tax year.
