Last year, three times as many Poles chose to return to their home country as to emigrate. Those returning from the UK make up a clear majority. Regardless of the country of current residence and the reason for returning home, people who have worked in England can apply for a tax refund.
Summary & key takeaways
- Workers who overpaid tax on an employment contract can claim a UK tax refund.
- It most often applies to those who did not work a full tax year.
- Simply send form P85 to HMRC along with original P45s or payslips.
- People who have left the UK can apply even during the tax year.
Who can receive a refund?
People who had an employment contract and paid too much tax can apply for a tax refund. In practice, this particularly means people who did not work a full tax year, that is, from 6 April to 5 April of the following year. It is worth remembering that employees in the United Kingdom do not have to file a tax return, which is why they must apply for a tax refund themselves.
What do you need to do?
The first step towards recovering overpaid tax is completing form P85, available to download from the HM Revenue and Customs (HMRC) website. It must be done legibly and in full, otherwise you may run into problems. A correctly completed form can be sent back even after returning to Poland. You should attach to the form the original P45 documents issued by your employer, or payslips, that is, the statements provided by your employer. The latter option, however, may lengthen the whole process, so it is worth waiting for the full documentation from your employer. They are legally obliged to issue these documents, so you need not worry that they will fail or refuse to do so.
When should you send the documents?
You can start applying for a refund after the end of the tax year, that is, from 6 April. However, a concession has been introduced for those who have left England regarding tax refunds. They can submit their declarations even during the tax year.
What are the benefits?
The tax-free personal allowance in 2018 will be just under twelve thousand pounds. The refund you can obtain is not fixed and depends on the income you earned and the amount of overpaid tax. But an extra influx of money always comes in handy.
If you have difficulty understanding the procedure, or doubts about how to fill in particular boxes, anyone interested in recovering overpaid tax can turn to firms specialising in accounting services or dealing exclusively with tax recovery matters. In complicated situations, it is worth using their services to be sure that the tax declaration will be processed successfully. Such services typically cost between 5 and 15 per cent of the value of the tax recovered.
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