There is still a lot of unanswered questions about Brexit situation after 29 March 2019. This is the official date of UK withdrawal from the European Union. While there is little time left, there is no clarity about the conditions. Emigrants and Lithuanians who have already came back to Lithuania have a lot of questions about tax refunds.
© Reuters / Scanpix

Žydrūnas Janušauskas, the CEO of the tax refund company “RT Tax” states that this year there is an exceptionally high interest in tax refunds from the United Kingdom: “We have many queries, people are interested if it will be possible to recover taxes under the same conditions in the future. Returning emigrants also submit documents for tax refunds more intensively than in previous years. To say that people are frightened would be too daring. But we really feel worry or anxiety from the returning emigrants,” RT Tax wrote in a press release.

However, there are more questions than answers about the procedure after Brexit comes into force. So far, UK tax authority does not provide information on changes in the tax refund process. “Unfortunately, we cannot confirm nor deny that after 29 March it will be impossible to recover taxes. We do not have such information. Nevertheless, we urge people who have been working in UK for the last 5 years to start a tax refund before Brexit comes into force. There is high probability that there will be no significant changes. However, as there is no guarantee, it is better to handle all formalities on time.” – says Ž. Janušauskas.

Under the current legislation, the tax year in the United Kingdom starts on April 6th. Lithuanian citizens, who have worked in UK and came back to Lithuania, can recover taxes for the last 5 years, so this year it is possible to apply for a refund for the period from 2014 onwards. It is estimated that an average of € 860 in overpaid income tax returns per person. Different procedure applies to the self-employed persons, who must submit tax declarations each year by 31st of January. Ž. Janušauskas states: “Self-employed persons must fill in tax declarations without exceptions - even if they are registered as "Self-employed" but have not worked in UK. Failure to complete all formalities on time will result in penalties for delays, starting from £ 100 per month.” There is no information if the tax laws will change for self-employed persons after Brexit comes into force.

There are currently around 200,000 Lithuanians living in the United Kingdom. Citizens who are watching Brexit news have few options for the future – to come back to Lithuania, to emigrate to richer countries of the European Union or to stay in the country and consider of getting the passport of UK.

Įvertink šį straipnį
Norėdami tobulėti, suteikiame jums galimybę įvertinti skaitomą DELFI turinį.
  • 1
  • 2
  • 3
  • 4
  • 5
(0 žmonių įvertino)
Leave a comment
or for anonymous commenting click here
By posting, you agree to terms
Read comments Read comments

Wellness start-up Urban establishes development office in Lithuania

Urban was founded in 2014 by Jack Tang and Giles Williams to provide easy and affordable access to...

Profits in Lithuanian banking sector highest since 2007 (1)

Lithuanian banks and branches of foreign banks in Lithuania earned almost 358 million euros (406...

Alternative lending in Baltics is taking market share from traditional banks and credit unions

In the ever-growing European alternative finance market, Lithuania - together with other Baltic...

Global supplier to mobility industry to open shared service centre in Lithuania

Dana Incorporated, a world leader in highly engineered solutions for improving the efficiency,...

Lithuanian organizations join forces to manage fintech risks

Nine Lithuanian entities agreed on Monday to cooperate in managing risks in the financial technology...