Step-by-Step Guide to Applying for a UK tax refund

Transcription

1 STEP-BY-STEP TAX REFUND GUIDE Step-by-Step Guide to Applying for a UK tax refund If you have left the UK to travel or emigrate for an extended period of time, it s likely you have overpaid tax. In many of these cases, individuals do not take advantage of their entire tax free allowance. Follow this step-by-step guide to obtain the tax refund you might be due. It is possible to claim back any overpayment of tax from HM Revenue and Customs for the last 5 years. While working, you should have been given at least one of the following tax documents from your employer: P45 (See Appendix A on page 5 for an example) This document should have been given to you when you left your employer; it contains 3 sections. P60 (See Appendix B on page 6for an example) This document should have been given to you at the end of the tax year. It provides a summary of the amount you earned and paid in tax throughout the year. Statement of Earnings HM Revenue and Customs will not provide replacements for your tax documents. If you have lost your P45 or P60 a statement of earnings will replace either of these documents. Your former employer is required by law to provide this on request. If you must contact your former employer in order to obtain this document, see Appendix C on page 7 for a sample letter. 1. Gather your P60(s) (see step 2 if you do not have access to your P60) for each of the last 4 full years you have worked. You can still lodge your claim for previous years even if you do not have your P60s. If you do not have your final P45, however, you must obtain a Statement of Earnings instead, which is detailed in step 2. GETTING A STATEMENT OF EARNINGS (SEE APPENDIX C ON PAGE 7 FOR AN EXAMPLE) 2. If you are missing your P45 and P60, a statement of earnings from your former employer is an allowed alternative. Your previous employer is required by law to provide a statement of earnings upon request. WRITING A REQUEST FOR A TAX REFUND (SEE APPENDIX D ON PAGE 8 FOR AN EXAMPLE) 3. Using Appendix D as an example, write a letter to the HMRC requesting a tax refund.

2 STEP-BY-STEP TAX REFUND GUIDE COMPLETING FORM 91 (SEE APPENDIX E ON PAGE 9 FOR AN EXAMPLE) 4. Print Appendix E Form 91 Employment Record. 5. Write your National Insurance Number in the top, right hand corner where indicated. 6. At the top of page 2, write the earliest year you are due a refund. 7. Starting from April of the recorded year, complete the remaining sections. Remember to include dates when, you were not working or, were on Job Seekers allowance and tick the appropriate box. 8. In the box to the right, include as much information as you can about your previous employer. Make sure to include their name, address and tax reference number which should be found on your P45, P60 or statement of earnings. 9. Moving one more box to the right, describe the type of work you were doing (such as Administration ) and include your payroll number (which should be found on your P45, P60 or statement of earnings). If you do not know this number, leave it blank. 10. In the next box input an estimate as to your weekly income before tax. 11. For the vast majority of people, the pension section should be left blank. If you receive a pension, then you should complete this section as requested. 12. To the right of the pension section, input your date of birth. 13. Below your date of birth, tick, if you are not working or if you are only working one job. In any other case tick No. 14. Complete the rest of the form as instructed.

3 STEP-BY-STEP TAX REFUND GUIDE COMPLETING FORM P85 (SEE APPENDIX F ON PAGE 12 FOR AN EXAMPLE) 15. Go to Appendix F, at the end of this guide and print Form P85: Leaving the UK. 16. Record your National Insurance Number (top, right hand corner) and address (beneath the HM Revenue and Customs icon) in the appropriate sections. 17. Go to section 1, and record your nationality. Make sure to include on what grounds you claim this nationality e.g. passport, place of birth. 18. Write the country you are going to, the date you are leaving (or have left) and the length of time you lived in the UK. 19. Answer the question, Do you intend to live outside the UK permanently? appropriately. 20. Answer the question, Will you be visiting the UK while you are living abroad? appropriately. 21. Answer the question, Are you leaving the UK to work? appropriately. If you answer, complete section 2 as requested. If you answer No leave section 2 blank. 22. Section 3 Answer the question Will you or your spouse or civil partner, have any accommodation in the UK while you are away? appropriately. For example, if you have purchased a property in the UK and plan to make it available for rent, answer. Continue to section 4 if you have answered No. 23. Section 4 Answer the question Will you be receiving rents, premiums, or other income from property in the UK? appropriately. Move to section 5 if you answer No. IMPORTANT: If you answer yes to questions 19, 20 or 21, then you will NOT be issued with your refund directly but instead HMRC may request that you complete a Self-Assessment Tax Return at the end of the current tax year (April 2013). As part of this, you will be required to declare all of your income for the 2012/13 year. 24. Section 5 Answer all questions appropriately. 25. Section 6 Write the year you are leaving the UK as an answer for the following statement: I claim repayment of tax that I may be entitled to for the year ending on 5 April and enclose Parts 2 and 3 of my P45 - Details of employee leaving work.

4 STEP-BY-STEP TAX REFUND GUIDE 26. Below the above question, complete your address and postcode in the box to the left, and leave the box to the right blank unless you would like a nominee to receive your tax refund. 27. Write your bank account, sort code and account number. Sign and date section Complete section 7 as requested. Sending your completed documents to the HMRC 29. Send the following, completed documents, to the address in Appendix D on page 8: a. P85 Form (Leaving the UK) b. P91 Form (Record of Employment) c. P45, P60 or statement of earnings d. Tax Refund Request Letter (Appendix D) We recommend that you photocopy all documentation before sending to your tax office. FOLLOWING UP ON YOUR APPLICATION FOR A TAX REFUND Tax refunds normally take between six to eight weeks, but can sometimes take a lot longer depending on the backlog of post that HM Revenue and customs has in any particular tax office. If you have not heard anything about your tax refund within 6 weeks, it is advisable to chase the relevant tax office as there may be a bottle neck which is stopping your tax refund from being processed. If you have any queries then you should contact HMRC on their client enquiry line: (from within the UK) (if calling from abroad) Before you call, make sure that you have your National Insurance Number and your other tax documents to hand, as well as a copy, and dates of any letters that you have sent to your tax office. When a call operator answers your call, tell them that: I am calling regarding my Pay As You Earn tax refund which I sent on <DATE SENT> The call operator should check up on your tax refund confirming the reason why it is taking longer than normal.

5 Appendix A P45

6 Appendix B P60

7 Appendix C Stmt of Earnings Request: Request Statement of Earnings from Previous Employers Human Resource/Payroll Manager <PREVIOUS EMPLOYER S ADDRESS> Dear Sir or Madam, < ADDRESS> < PHONE NUMBER> <DATE> I am writing to request a copy of my statement of earnings on company headed paper for the year/s <YEARS OF EMPLOYMENT>, as is my entitlement under the 1998 Data Protection Act. If you would be so kind as to send the statement of earnings to the above address at your earliest connivance. Yours faithfully, <SIGNED> <YOUR NAME>

8 Appendix D Tax Refund Request: Tax Refund Request to Tax Office HM REVENUE AND CUSTOMS PAY AS YOU EARN PO BOX 1970 LIVERPOOL L75 IWX <YOUR ADDRESS> <YOUR PHONE NUMBER> <DATE> <YOUR FULL NAME> <NATIONAL INSURANCE NUMBER> Dear Sir or Madam, I am writing to request a repayment of any overpayment of tax for the years <YEAR/S TAX REFUND IS DUE>. Please find enclosed a copy of my P91 which should provide a complete work history for your records. If you have any further questions please do not hesitate to contact me on the address of phone number above I understand that a tax refund should take between 4/6 weeks and I appreciate your urgency in this matter. Yours faithfully, <YOUR NAME> <SIGNED>

9 Appendix E Form P91: Employment Record

10 Tax reference Employment record National Insurance number Please use these if you write or call. It will help to avoid delay. You could end up paying too much tax if you do not complete this form. I need to check that the record of your recent jobs (or any periods when you were not working) is correct. To do this I need your help. Please answer the questions on the back of this form and then return it to me in the envelope provided. Address If the address above is wrong or incomplete, please give the correct address here National Insurance number If your National Insurance number is different from the one shown at the top of this form, please give the correct one here Postcode If you have changed your address in the last 12 months, please give your previous address here this will help me find any earlier tax records for you Issued by please turn over Postcode P91 BS5/02

11 Jobs Starting from, please list in date order all the jobs you have had and any periods when you were out of work. Please do not leave any gaps between the periods. Please use CAPITAL letters and continue on a separate sheet of paper if you need to. If you have been out of work at any time and claimed Jobseekers Allowance or received taxable Incapacity Benefit please tick the appropriate box. If you were not working and not getting either of these benefits, please tick the 'Not earning' box. Date in full for example, one box only for each period Employed Selfemployed Jobseekers Allowance Incapacity Benefit Not earning If you ticked: Employed enter your employer's full name and address, and Tax reference number (if known) Self-employed enter your business name and address Jobseekers Allowance or Incapacity Benefit enter the name of the Benefit Office Not earning it helps if you can say what you were doing, for example,"abroad" or "in full time education" Type of job, payroll/works number and branch or site you worked at Total weekly income (with bonuses and overtime) before stoppages or weekly rate of benefit From To Tax reference (if known): Tax reference (if known): Tax reference (if known): Tax reference (if known): Pensions Please if you receive any of the following Pension from a previous employer (Give your tax reference, if known) A state retirement pension Please complete in all cases Date of birth Tax reference (if known): / / Is your new job your only job? ( ) No If no, give details of the other employment (Add tax reference if known) If you agree to us contacting you by phone to discuss any queries, please give a contact number Please give your title: Mr Mrs Miss Ms other Any other pension If you tick this box please state the type of pension below What is the amount of your weekly or monthly pay for your current job? Weekly Monthly Signature Date / /

12 Appendix F Form P85: Leaving the UK

13 Leaving the UK getting your tax right Help If you would like more help with this form: go to phone our helpline on if you are calling from outside the UK phone Yr Iaith Gymraeg Ffoniwch i dderbyn fersiynau Cymraeg o ffurflenni a chanllawiau. About this form Use this form to claim tax relief or a repayment of tax if: you have lived or worked in the UK you are leaving the UK, and you - may not be coming back or don t know when you re coming back or, - are leaving the UK to work abroad full-time for at least a complete tax year. Do not fill this form in if: you normally live in the UK and are going abroad for short periods, for example on holiday or a business trip you have completed, or are required to complete a Self Assessment tax return for the tax year that you leave the UK (unless you are leaving the UK to work abroad full-time for at least a complete tax year for a UK based employer). A tax year is 6 April one year to 5 April the next. Filling in this form Everyone should fill in pages 1, 2 and 5. You should also fill in: page 3 if you will get income from the UK after you leave page 4 if you will do any of your work in the UK or you will be paid from the UK. What you might need to help you fill in this form Your form P45 Details of employee leaving work if you have one, (your employer gives you this form when you stop working for them). The guidance Residence, domicile and the remittance basis. Go to and enter HMRC6 in the Search box. 1. About you 1 Your surname or family name (use capital letters) 4 Your phone number We may call you if we have any questions about this form 2 Your first names (use capital letters) 5 Are you male or female? Male Female 3 Your most recent address in the UK (use capital letters) The UK is England, Scotland, Wales and Northern Ireland 6 Your date of birth DD MM YYYY Postcode 7 Your National Insurance number, if you have one You can find your National Insurance number on a form P45 or P60 that you get from your employer, a PAYE Coding Notice or a letter from us P85 Page 1 HMRC 08/12

14 About you continued 8 Your nationality For example British, Polish, French 15 Do you intend to live outside the UK for a full tax year? A tax year is 6 April one year to 5 April the next No If No, go to question 17 9 How long had you lived in the UK before the date you left (or the date you intend to leave)? 16 Do you intend to live outside the UK permanently? 10 Your date of leaving the UK DD MM YYYY No If, go to question Which country are you going to? 17 When do you expect to return to the UK? 12 What is your full address in that country (in case we need to write to you) 18 How many days do you expect to spend in the UK in each of the next three tax years? (6 April one year to 5 April the next) For example 81 days between 6 April April Will you (or your spouse or civil partner) have any accommodation in the UK while you are abroad? No If No, go to question 15 If, tell us the address of the accommodation 19 Will you get any income from the UK after you have left? This includes income from property, pensions, employment, one-off bonus payments, and bank or building society interest No 20 Will you be working full-time outside the UK? No 14 Do you own or have you ever owned this accommodation? No If, is (or was) it owned by you alone or jointly with someone else? Me alone 21 Will you either: do any of your work in the UK, or get a salary from the UK? No Jointly Page 2

15 2. Income you get from the UK after you leave Fill in this section if you will get any income from the UK after you leave the UK. Income includes income from property, earnings you get from UK work, a one-off bonus payment, pensions, bank or building society interest or profits from stocks and shares. If you get any income from property, please answer questions 22 to 24. For all other income please answer question 25. For more information about the types of income that affect your tax go to and enter HMRC6 in the Search box. Income from UK property If you have a property in the UK that you get income from you may have to pay UK income tax. For more information go to and enter The Non-Resident Landlords (NRL) Scheme in the Search box. 22 Will you get any income from a property in the UK? For example, rent, property fees, interest premiums 24 How will you be paid? Put X in one box No If No, go to question 25 Paid directly by a tenant 23 How much income will you get from UK property each tax year? If you don t know the exact amount, give an estimate The tax year you leave the UK Paid by an agent Tell us the date that they started to manage the property DD MM YYYY Other, give details In the next tax year The name and address of the person paying you Name Address Postcode Other income from the UK 25 Give details of any other income you will get from the UK after you leave. If you do not know the actual amount, give an estimate Type of income For example Annual amount Date started Payroll / pension Tax office reference pension or employment bonus in DD MM YYYY or account number (if applicable) If you will be working when you leave the UK go to section 3 Your employment on page 4. If not, go to section 4 How you want to be paid any money we owe you on page 5. Page 3

16 3. Your employment Fill in this section if: you will do any of your work in the UK, or you will be paid through a UK payroll or by an office or agent in the UK. For more information about UK personal tax allowances and types of income, go to and enter HMRC6 in the Search box. 26 Will you do any of your work in the UK? For example business meetings, seminars or training courses 30 Will you do your job on a rota? For example as an oil rig worker who works 14 days on rig then 14 days off No No If, give details I f, tell us the country where you expect to spend your days off 27 Do you work for the UK Government as a Crown servant or in Crown employment? No 31 Will you be paid through either: a UK employer through a UK payroll, or an office or agent in the UK? No If No, go to section 4 on page 5 If, tell us your department s name I f, tell us the name and address of the person paying you Name 28 What job will you do in the country you are going to? Address 29 Your employer s name and address Postcode Name Address Page 4

17 4. How you want to be paid any money we owe you Not everyone gets a refund. If we owe you any money, we can either pay it to you or someone else on your behalf this is known as a nominee. Please choose one of the following two options: Option one Pay direct to bank or building society Bank sort code Account number Option two Pay by cheque direct to me or my nominee Put X in one box Make the cheque payable to me I authorise the cheque to be payable to my nominee Tell us your nominee s name Account holder s name Tell us the address to send the cheque to Bank or building society name and address Name Address Put X in one box This is my account This is my nominee s account Declaration You must sign this declaration. If you give information which you know is not correct or complete, action may be taken against you. I declare that the information I have given on this form is correct and complete to the best of my knowledge I claim repayment of any tax due. Your signature Date DD MM YYYY What to do now Put an X in relevant box I have enclosed parts 2 and 3 of my form P45 Details of employee leaving work (do not send photocopies). If you have not yet received your P45 from your employer please obtain it before you return this form. I can t get a form P45. Please tell us why in the box below, for example because you are retired or a UK Crown servant employed abroad. If you have a form P45 and don t send it to us, any repayment due to you cannot be made. Please send this form to your tax office. You can find your tax office address by: going to select Contact us and choose Income Tax asking your employer. Page 5