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reclaiming tax when leaving the UK

reclaiming tax when leaving the UK

Old Jan 3rd 2010, 8:46 pm
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Default reclaiming tax when leaving the UK

I'm sure that someone posted a thread last year about being able to reclaim some of your tax back before you leave the country. If this is correct, is there a 'best' time to do this ie in March when you have probably paid the highest amount in one financial year, or does it just somehow depend upon your annual salary.
Also, if you can claim some tax back, are you able to claim it before you leave?
Thanks in advance
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Old Jan 3rd 2010, 9:05 pm
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Default Re: reclaiming tax when leaving the UK

If you leave the country before the end of the tax year and have no other income derived in the UK, then you can fill in the form P85 to claim it back. You can put in the claim as soon as you stop earning, it might not get processed before you leave, depends upon how big a gap you have really.

Most employed people, i.e. paid under PAYE will be entitled to a tax refund because their personal allowance will have been pro-rated but they will not have received the full benefit of it - which they are entitled to as it is as it an annual entitlement even if they are only in the country for, say,two months.

The further through the tax year somebody is the more of the personal allowance they will have used up and thus the smaller the tax refund. So I would expect somebody who leaves at the end of March to receive little to no rebate but somebody who leaves at the end of April will get a larger refund. I am not sure I would base a decision on when to leave on this though.

Last edited by Bermudashorts; Jan 3rd 2010 at 9:07 pm.
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Old Jan 3rd 2010, 9:45 pm
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Default Re: reclaiming tax when leaving the UK

Thanks Bermudashorts - much appreciated
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Old Jan 3rd 2010, 10:03 pm
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Default Re: reclaiming tax when leaving the UK

Just noticed on the P85 form they ask whether you will be renting. We will be renting and earning only about £150 per month although this will pay for my child maintenance and home insurance. Does this mean that I will not be able to claim anything?
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Old Jan 3rd 2010, 10:26 pm
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Default Re: reclaiming tax when leaving the UK

I wanted to add that we reclaimed using the P85 form when we left the UK in October last year and received our repayments direct into our banks in December. The whole thing was remarkable straightforward.

Sorry, we weren't renting out a house in the UK so I can't comment on that.
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Old Jan 3rd 2010, 10:48 pm
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Default Re: reclaiming tax when leaving the UK

The tax due on your rental income (less rental expenses) may well offset any tax rebate you are owed due to not have used your full personal allowance in your employment. It doesn't necessarily mean you won't get anything, it just needs to be taken into coinsideration.
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Old Jan 4th 2010, 10:44 am
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Default Re: reclaiming tax when leaving the UK

Originally Posted by chris and tracy View Post
I wanted to add that we reclaimed using the P85 form when we left the UK in October last year and received our repayments direct into our banks in December. The whole thing was remarkable straightforward.

Sorry, we weren't renting out a house in the UK so I can't comment on that.
I second this. Very straightforward once all the forms are filled in.
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Old Jan 4th 2010, 12:55 pm
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Default Re: reclaiming tax when leaving the UK

Is the refund amount depending on your salary? (stupid question I know) just trying to work out is it worth completing the form is it pennies or pounds!
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Old Jan 4th 2010, 1:06 pm
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Default Re: reclaiming tax when leaving the UK

Originally Posted by nbn8 View Post
Is the refund amount depending on your salary? (stupid question I know) just trying to work out is it worth completing the form is it pennies or pounds!

The size of the refund is really more to do with how much unused personal allowance there is left over. So if two basic rate tax payers both put in the P85 at the same time (and PAYE had been correctly applied for both and they both have same tax code..) then they would get the same refund, even if one earned a lot more than the other. Same for two higher rate tax payers, they would get the same refund as each other but it would be larger than the basic rate payers refund.

(This assume salary is the only income)

Last edited by Bermudashorts; Jan 4th 2010 at 1:35 pm.
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Old Jan 5th 2010, 12:28 am
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Smile Re: reclaiming tax when leaving the UK

We left the uk end of January 2009 and didnt find out about the P85 until we arrived over here and speaking to others that had made the move. Anyway between Claire and myself we earned around £50k in 2008/2009 and completed our P85's and sent them off from oz along with our P45's. We were also renting our house out in the uk but not earning any profit as it doesnt even cover the mortgage, and you have to declare this on the P85. If renting your uk property out you must also complete an overseas landlord tax form (sorry do not recall the number) as this may well delay your P85 payout as it did mine!! claire got around £250 direct to our bank account after 6 weeks i think, and mines took around 6 months (after numerous phone calls from oz) but i got back £500 again direct to our nominated UK bank account.

Overall it was definitely worth doing, i think i would have done it even if it was less than £50!! End of the day whatever the amount its better in your pocket than the HMRC's.

Last edited by Mike82; Jan 5th 2010 at 12:30 am. Reason: spelling edit
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Old Jan 5th 2010, 7:50 am
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Default Re: reclaiming tax when leaving the UK

Rent not covering mortgage does not necessarily mean you have not got profits chargeable to tax. Your mortgage is not fully allowable - only the interest component is.
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Old Jan 5th 2010, 8:34 pm
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Default Re: reclaiming tax when leaving the UK

Thanks Mike but can't you offset some of your tax in Australia against your financial loss on your UK rent? I also thought you would have both received more than what you did but who am I to know!!
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