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UK tax in the year of move away...

UK tax in the year of move away...

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Old Apr 24th 2012, 1:56 pm
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Default UK tax in the year of move away...

Just wondering - When you leave the UK, you cease to be a resident of the UK for tax purposes - filing P85 - right? No planned return to the UK.

Now, I will have paid tax all year to date (April - July) at 40%ish when actually my wages over the whole 12 months of the 12/13 tax year (there will be 0 UK income from August - March) will actually fall below the 40% tax threshold. Therefore, over the whole year - I have overpaid my tax - right?

If the above is correct, how do I go about getting my tax back?

If the above is incorrect, why so? Are my allowances pro-rated over the year so that I only get 4/12 of the allowances leaving me in the same tax bands?

Appreciate any responses. Thanks guys...
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Old Apr 24th 2012, 2:08 pm
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Default Re: UK tax in the year of move away...

From the DirectGov site:

"HMRC will use the information on the form (P85) to send you any tax refund you're owed and work out if you'll become non-resident."

http://www.direct.gov.uk/en/MoneyTax...heUK/DG_078445
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Old Apr 24th 2012, 2:08 pm
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Default Re: UK tax in the year of move away...

Originally Posted by lj2
Just wondering - When you leave the UK, you cease to be a resident of the UK for tax purposes - filing P85 - right? No planned return to the UK.

Now, I will have paid tax all year to date (April - July) at 40%ish when actually my wages over the whole 12 months of the 12/13 tax year (there will be 0 UK income from August - March) will actually fall below the 40% tax threshold. Therefore, over the whole year - I have overpaid my tax - right?
Correct - i was in the same situation, moving in Jan 2011, 3/4 of the way through the UK tax year.

If the above is correct, how do I go about getting my tax back?
File your P-85. HMRC works out how much you've overpaid and sends you a nice fat cheque. Make sure you keep a UK bank account as the HMRC cheque can only be paid into a UK account.

If the above is incorrect, why so? Are my allowances pro-rated over the year so that I only get 4/12 of the allowances leaving me in the same tax bands?
Correct - the allowances and bands are pro-rated on the assumption that you'll be a (higher-rate) UK tax payer for the entire UK tax year.
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Old Apr 24th 2012, 3:23 pm
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Default Re: UK tax in the year of move away...

Thanks guys! that is very useful. Not as useful as a cheque from HMRC may prove to be, but useful nonetheless!!
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Old Apr 24th 2012, 5:58 pm
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Default Re: UK tax in the year of move away...

I left the UK in November 2011 and sent my P85 in December. I got my refund in January 2012 - HMRC were unusually quick

Might no be the case right now as they will be busy with the end of the fiscal year
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Old Apr 24th 2012, 6:21 pm
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Default Re: UK tax in the year of move away...

We left in May 2008 and got a cheque for overpaid tax last week. We filed our P85 when we left and then forgot all about it, so it was a nice surprise in the post!
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