UK Tax Refund

Tax Information for the UK - Income Tax refund from the UK

The tax system in England insists on tax advance payment from each person receiving a salary in the UK and once work is terminated or at the end of the financial year you can apply for a tax refund. In the UK it is possible to apply for a refund up to 4 years back from the current tax year. However, if the financial authorities assess back taxes then the penalty for a late application is applicable together with the interest on the receivable amount.

Your employer can deduct the following taxes

  • An income tax, 20 to 45 %
  • National Insurance tax, 12 %

As most of the foreign employees work in the UK only for a part of the financial year, they receive an average refund of about 1108GBP!!! However, it is not possible to refund the medical and social taxes. On the other hand, the length of the working period in the UK is counted towards your retirement pension.

During your stay in the UK it is necessary to:
  • Register at the Home Office (if you are Bulgarian, Romanian or resident of a non-EU country)
  • Apply for a National Insurance Number

What is a Form P45?

A P45 is a form you receive from your employer when you leave employment. You may need it for the following:
  • Claiming a tax refund during unemployment
  • Claiming Social Welfare Benefits
  • To give to your new employer to avoid paying emergency tax

What is a P60 Form?

The P60 form is issued by an employer to an employee certifying details of an employee's Pay, Tax and PRSI contributions for the tax year. The form must be issued to all employees with employment at the end of the tax year / before the 1st of June following the end of the tax year. From the 2010-11 tax year onwards a form P60 can be provided, paper or electronic.

What is a National Insurance Number?

The National Insurance Number identifies the taxpayer, and the NI number can be found on the top of both the P45 or P60 forms.

What is National Insurance?

This is retirement insurance. For EU countries it is not refundable

How many years back can you apply to get the overpaid taxes?

You can apply 4 years back from the current tax year.

How long does it take to receive the tax refund?

On average it takes between 12 and 14 weeks from the time your documents are sent to the Tax Authorities. Hovewer, the actual time may vary on a case by case basis

How much is the service fee?

The price is 9% from the refunded amount. There is a minimum fee of 50 GBP.
The price does not include VAT or bank charges.