Check gap year destination tax rules, gappers urged

People planning to work overseas during their gap year need to think about tax planning before they leave home, it has been claimed.

Writing for the Guardian, Jill Insley urged gappers to acquaint themselves with the tax regime in the country they are heading to.

A failure to do so could see travellers incur excessive charges once they start working abroad, she stated.

"For example, gappers going to Australia should apply to the Australian Taxation Office for a tax file number before they head off down under – this is essential to avoid paying emergency tax at 48 per cent when you arrive," Ms Insley added.

"In the US, exchange visitors only pay federal and state taxes, not social security, but still need to apply for a social security card."

People seeking paid employment in another country also need to establish whether they need a special visa, according to Bob Atkinson, travel expert with Travelsupermarket.com.

Click here for gap year advice.