Claiming Tax Back When Working Abroad

When working abroad, many people are confused about whether they are able to claim a tax refund. The answer is simple. Because you’re leaving the UK, you are eligible to claim tax back if you go overseas part way through the tax year.

How Much Tax Can I Reclaim?

This really depends how much you have earned in the year. If you have left the UK early enough that you have earned less than the tax free income allowance, which for this tax year is £6,475,  then you will be able to reclaim all of the tax back that you have paid for that year. This tax free income allowance is increasing to £7,475 for 2011/12. If you earned more than the tax free income allowance, your tax rebate will only be a part of the tax you paid for the year. So if you had earned £10,000, you would not receive the full amount of tax back that you had paid.

How Do I know How Much Tax I Will Get Back?

Every person who works in the UK gets a P45 from their employer when their employment finishes. This document is a legal requirement and must be issued. It will tell you how much income you’ve earned for that tax year, and how much tax your paid. You can then use a tax refund calculator from a tax refund specialist, and this will give you a figure of how much tax back you can expect to receive.

Can I Reclaim Tax For Other Tax Years?

HMRC allow you at present to reclaim tax for up to six years ago, however you can only claim tax back if you overpaid it in previous years. If you had a period of unemployment for instance, you will be entitled to a refund for the time that you were out of work, however if you have been working you will probably not be entitled to a tax refund, unless you were on an incorrect tax code, so you will need to check the tax codes on all previous P45 and P60 documents.

What Documents Are Needed For A Tax Refund?

You will need to provide you P45 which would be issued upon leaving your employment, along with a P85 from and a P50 claim form. You can then forward these on to your tax refund specialist and they will get the ball rolling on your claim for you.

What Is The Timescale On A Tax Rebate?

It usually takes around 6-8 weeks to claim your tax back. This is provided that all of the documents that you provide are correct, which is why it is useful to use a tax refund specialist as they can check these for you. Depending on the workloads of your local tax office, there may be some delay however claims are usually dealt with by 8 weeks, so long as there are no queries raised during the process. You will then be sent the funds by BACS bank transfer if you request for this method.

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