Hi guys
Wish you a great year Wwoof-ing you should have lots of fun.
For my tuppeneth worth (used to be a grey suited accountant in a previous life!) - and please - THIS IS MY OPINION. (sorry)
This is what I would do for time defined year out scenario.
Register yourselves as self employed - take your savings and treat them as income and use them in your year out - keep any receipts, travel costs etc etc, do not claim a rebate for this year when you leave your job but ask that any rebate be applied through your tax code for future years.
By being self employed and therefore self assessing your tax and NI contributions you will not be liable to pay anything during your year out, as these will only become payable by January of the year after the tax year end, for example if your year out is until April 2010, then any payments will be due by January 2011. this gives you time to find work when you return etc etc.
I don't obviously know how much you are taking with you as savings but if it is less than the current taxable levels you won't have any tax to pay on your return anyway - and you can offset any payments out against income coming in - hence keep all your travel lodging receipts etc.
Doing it this way also leaves you covered for NI and therefore any unemployment or other benefits that are NI dependent on your return. So if you come back and you don't have work, but submit a self assessment form for the year which shows you have NI payments due, and you pay them you have not 'lost' a year of NI contributions.
And in addition by not claiming any rebate in this year - and asking that it be rolled over, you can either reduce your tax due (if any) for your self assessed self employed year, or can have your tax code altered for any subsequent job and claim back your tax that way, which can be easier if you are coming back into work and need every penny you can get.
Hope this is clear - but any queries - please feel free.
Have fun!!
Monika
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(thanks)
