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Claiming Back Tax When Working Abroad

Claiming Tax Back When working abroad
Are you leaving the UK to work abroad?

With the population of the UK increasing to 61 million and unemployment rising rapidly, many people are leaving the UK to work abroad. Our tax experts answer some common tax questions on this topic:

Am I due a tax refund when leaving the country to work abroad?
As you are leaving the UK part way through the tax year you can claim a refund on the tax and income for the year.

Can I claim all my tax back when leaving the UK?
If you have earned less than the annual tax free allowance (for 2009/2010 this is £6,475) then you can claim back all the tax you have paid. If your income for the tax year was over, you will be able to apply for a portion back. For example if you earn £10,000 between April 5th (the start of the tax year) and the date you leave the UK and if you have paid £2,000 in income tax, you will be due a tax refund of £1,207.

How can I calculate my tax refund?
When you finish working, your employer in the UK should provide you with a P45. The P45 will state the amount that you earned and how much you paid in tax for the fiscal year in question. Input these amounts into our tax rebate calculator which will provide an estimate of any refund due.

What about tax rebates for previous years?
If you have been with the same employer for the whole tax year, it is less likely that you will be due a refund. You can still check however. Each April, if you are working, you will be given a P60 from your employer. The furthest in arrears that you can claim is 6 years.

When can I claim my tax refund?
As soon as you are given your P45 from your employer you can claim your tax refund. If you are not given a P45 or lose it, you can always ask your former employer to provide a statement of earnings, which will act as a sufficient replacement

What other forms do I need to claim my tax refund when leaving the UK to work abroad?
You should complete a form P85 from the Inland Revenue. Include this with any tax documents you have, together with a covering letter.

How long does it take to claim my tax back?
It depends on your tax office but refunds usually take between 4-6 weeks. Often there are backlogs and as a result it can take up to 90 days for refunds to be processed.

Can I claim my National Insurance (NI) back when working abroad?
Many people are unaware that you can claim back National Insurance Contributions. An NI (National Insurance) Rebate can be claimed at anytime and only needs to be done once. After that it is automatically done for you each year. Press on the link to claim a national insurance rebate.


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Julie Collings - Thursday, July 22nd, 2010

my company sent me to work in bangladesh for a year and a half and I have only been back to the uk once at christmas for a holiday and I have been payed my normal wages and tax as previous years , my company did not bother to find out if I am due any tax benefits or rebates but surley I am due some rebate for the years I have not been living here. The term I was to serve was not fixed so I did not apply for any ex pat status, pls can you tell me if I am entitled to any rebate for the time I have served abroad.

TaxFix - Friday, July 23rd, 2010

Julie Collings: If you become a non resident you only need to pay tax on your income arising in the UK.

Maria T. - Tuesday, July 27th, 2010

Hi,

I am a foreigner working in the UK, but I usually travel for 2 weeks every 2 months to work abroad for my company.Am I entitled to any tax rebates for these periods? If yes, how can I claim them? Thank you.

Adrian  - Thursday, August 12th, 2010

Hi I am a UK resident but have work abroad from 16years onlt returning weekends I am told by a accountent I am not entitled to any tax back.
Is this true

Cheers

DanH - Wednesday, August 18th, 2010

Hi I am employed by a British company but deployed to work overseas, this has been for a full tax year with me only returning to the UK less than 90 days, am I therefore entitled to claim back my income tax?
Cheers, Dan

Pankaj Verma - Saturday, September 4th, 2010

I lived in UK from September 2007 to April 2010 and worked there on tier-1 work permit.
I paid tax during working in UK, now I left UK permanently and want to reclaim my taxes I paid.
Can you people help me in this regard? If yes, than
What is the procedure to reclaim tax in my case?
How much I can reclaim all I paid (Tax+NI) or part of it?
Do I need to come to UK for the process or it can be done from abroad with help of consultant?
What’s your professional fee if applied?
How much time it will Take?