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 before the current tax year. However, if the financial authorities assess backdate taxes, 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 of 20 to 45 %

  • National Insurance tax of 12 %

As most foreign employees work in the UK only for a part of the financial year, they receive an average refund of approximately 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 a resident of a non-EU country)

  • Apply for a National Insurance Number

What if I wear a uniform? (or Special Deduction for who wear a uniform)

If you must wear a recognisable uniform that shows you've got a certain job, like a branded T-shirt, nurse or police uniform, you are allowed to claim a certain deduction.

This tax relief is meant to cover your purchase, cleaning, repair or replace expenditure for your uniform. However, you cannot claim if your employer washes your kit, provides facilities to do so (even if you do not use them) or pays you for doing this maintenance.

The amount of tax relief you are able to claim depends on your industry and the occupation.  The standard flat rate expense allowance (FREA) for uniform maintenance is £60 (for 2017/18).

If you are claiming for what you have spent you will need payment records. £60 is a flat rate, so you do not need to record and report the individual amounts you spend.

What if I am working on a ship? (Special Tax Deduction for Seafarers)

If you are an employee and work at sea, you may be able to reduce your tax bill by getting the Seafarers’ Earnings Deduction. Here you can find more information.

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 (End of Year Certificate) is a statement issued to taxpayers at the end of a tax year. It is important a taxpayer does not destroy the P60 forms issued to them, as they form a vital part of the proof that tax has been paid. The form P60 can be provided by paper or electronically.

What is a National Insurance Number?

The National Insurance Number identifies the taxpayer. You can find your National Insurance number on your Payslip, P60 and P45 forms or letters about tax, pensions and benefits. If you have a personal tax account you can also view it there and print a confirmation letter.

What is National Insurance?

It is the system of compulsory payments by employees and employers to provide state assistance for people who are sick, unemployed or retired. For EU countries it is not refundable.

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

You can apply for up to 4 years before 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. However, the actual time may vary on a case by case basis