Working immigrants in UK to receive paid tax back if work less than 12 months??

Hi,
So there's a rumor spreading around the office that those in the UK on a work visa can file to claim their entire UK taxes if they leave the UK before 12 months. In fact, one person said their friend would routinely "quit" their job in the 11th month to go back to Australia for a month just to be rehired by the same place in the 13th month and do it all over again. And get thousands back in UK taxes every year.
Have any of you heard about this? If this is true, it seems kind of risky because I would think your home country would want taxes paid on the income. I can't imagine there a loophole this big in the system. What do you all think?

I'd be concerned that potentially not paying taxes as required may harm future visa applications / ability to visit / work / study in the UK, not to mention any implications of possibly avoiding tax in your home country.   

For proper tax advice (rather than relying on rumours!  ), see the Institute of Chartered Accountants of England and Wales:
http://www.icaew.com/index.cfm/route/158976/icaew_ga/en/Home/Find_a_chartered_accountant/Find_a_Chartered_Accountant

More about Income Tax and leaving the UK:
http://www.hmrc.gov.uk/incometax/tax-leave-uk.htm
http://search2.hmrc.gov.uk/kbroker/hmrc/forms/viewform.jsp?formId=767

HTH. 

Income Tax and arriving in the UK:
http://www.hmrc.gov.uk/incometax/tax-arrive-uk.htm

I've seen this asked lots of times on other immigration sites, so I guess this rumour is still doing the rounds.It seems they can only claim tax back for the months (in the tax year) that they didn't work: just like any Brit can.

Tax is worked out over 12 months over the tax year of April to April: if you work less than a full tax year, then you get some tax back - if you ask for it. Just make sure you check their calculations as strangely, errors always seem to be in the tax office favour.

I've seen this asked lots of times on other immigration sites, so I guess this rumour is still doing the rounds.It seems they can only claim tax back for the months (in the tax year) that they didn't work: just like any Brit can.

Tax is worked out over 12 months over the tax year of April to April: if you work less than a full tax year, then you get some tax back - if you ask for it. Just make sure you check their calculations as strangely, errors always seem to be in the tax office favour.

Not everybody gets money back.  As a non-dom you may owe tax if you elect the remittance basis because most PAYE codes give the full personal allowance - but non-doms claiming the remittance basis are entitled to a zero personal allowance.

The rule is if you are planning on staying for less than 2 years you can claim back NI contributions and living expenses. No such thing as getting back income tax. And coming and going wouldnt change anything. Ill try to find a link but Im not sure where it is. FYI: Im a tax accountant.

Couple more things: Its called the DDR. You can also deduct transportation to work and your move back to the US. You have to have been moved by your employer. I can find a link at work tomorrow when I have the right research software available. HRMC website is a joke.

Great guys, thanks!

Detched duty relief requires the correct circumstances.

It also requires guessing whether a Court would agree that an individual was not ordinarily resident, so you want significant clarity in all documents to provide later as evidence when the return is later audited.

Same as if you are a UK citizen and only work 10 months in the year.

It's to do with your tax free allowance (first £6,500 or whatever it is). They work out how much you pay per month so that allowance is included throughout the year. So if you only were to work 10 months instead of 12 then you would have paid too much tax so can get a refund. Happened to me when I was made redundant a few years ago and had 2 months out of work - I got a £500 rebate.

Sounds like someone has realised this also applies to foreign workers, no reason why it shouldn't, and then misunderstood or misreported it to make it sound as though immigrants can reclaim ALL their tax back!

Same as if you are a UK citizen and only work 10 months in the year.

It's to do with your tax free allowance (first £6,500 or whatever it is). They work out how much you pay per month so that allowance is included throughout the year. So if you only were to work 10 months instead of 12 then you would have paid too much tax so can get a refund. Happened to me when I was made redundant a few years ago and had 2 months out of work - I got a £500 rebate.

Sounds like someone has realised this also applies to foreign workers, no reason why it shouldn't, and then misunderstood or misreported it to make it sound as though immigrants can reclaim ALL their tax back!

Non-UK domiciliaries are not entitled to personal allowances if the remittance basis is claimed.  To claim the personal allowance would therefore require reporting worldwide income and gains - unless de minimis (below GBP2,000).