P85 form, tax refund on leaving the UK

meatandtwoveg

Hi there,

I am in the middle of filling out the P85 form, tax refund on leaving the UK, as I am leaving the UK around August 09 time. Now I am finishing work in July, so no problems submitting my P45 with the P85 form. I have to questions though?

1) Half of my income to date this tax year 09 to 2010 is from savings interest; how do I claim some of this interest back as part of my tax overpayment to me leaving the UK date, due to my yearly personal allowance? Do I include a separate form?

2) At the bottom of the form its gives details for payment to you; I want the money to be paid directly into my account as I will not be living in the UK, so no UK address, and I will not have a permanent address abroad until I get settled. How do you direct the HMRC to pay your money into your account? Do you put your own name in the name of nominee box, and then give your bank details in the box below this option?


Thanks for any help.

Cook_County

meatandtwoveg wrote: »

Hi there,

I am in the middle of filling out the P85 form, tax refund on leaving the UK, as I am leaving the UK around August 09 time. Now I am finishing work in July, so no problems submitting my P45 with the P85 form. I have to questions though?

1) Half of my income to date this tax year 09 to 2010 is from savings interest; how do I claim some of this interest back as part of my tax overpayment to me leaving the UK date, due to my yearly personal allowance? Do I include a separate form?

2) At the bottom of the form its gives details for payment to you; I want the money to be paid directly into my account as I will not be living in the UK, so no UK address, and I will not have a permanent address abroad until I get settled. How do you direct the HMRC to pay your money into your account? Do you put your own name in the name of nominee box, and then give your bank details in the box below this option?


Thanks for any help.

Leaving the UK does not entitle you to a refund unless you break residence - or we'd all get refunds every time we go on a long holiday.

If you are a Brit leaving the UK you need to actually have to have left the UK for a settled purpose elsewhere - see HMRC Brief 01/07 http://www.hmrc.gov.uk/briefs/brief0107.htm plus HMRC 6 http://www.hmrc.gov.uk/cnr/hmrc6.pdf.

Are you in full time employment abroad for a period that has already included a complete UK tax year? If not, then HMRC may well not accept that you are not ordinarily resident until after the period has elapsed following the very recent decision in the Genovese case http://www.lexisnexis.com/Community/...4/02/9067.aspx

meatandtwoveg

I am breaking residence; leaving for good, never to come back!

meatandtwoveg

meatandtwoveg wrote: »

Hi there,

I am in the middle of filling out the P85 form, tax refund on leaving the UK, as I am leaving the UK around August 09 time. Now I am finishing work in July, so no problems submitting my P45 with the P85 form. I have to questions though?

1) Half of my income to date this tax year 09 to 2010 is from savings interest; how do I claim some of this interest back as part of my tax overpayment to me leaving the UK date, due to my yearly personal allowance? Do I include a separate form?

Thanks for any help.

Anyone any experiences?

OneADay

As Cook_County said, I do not believe you are entitled to refunds on savings.
You stated you are not leaving till August 2009.

You are liable to pay 20% tax on savings up to some earning figure of 40k and more after that.

meatandtwoveg

OneADay wrote: »

As Cook_County said, I do not believe you are entitled to refunds on savings.
You stated you are not leaving till August 2009.

You are liable to pay 20% tax on savings up to some earning figure of 40k and more after that.

I think you are entitled to a repayment on your overall income based against your tax free allowances for the whole year, prior to the date of leaving the UK? I am positive.

Do you submit a R85 and a R40 form on leaving the UK?

Its just if you have earnt say 4k in paye and 4k in savings interest, and paid 20% tax minus personal allowance on your paye, and 20% tax on your savings interest, then combined against your yearly allowance you can claim some back. You may be entitled to some of your tax paid on savings interest back, but how do you claim it back on leaving the UK for good, do you have to wait until the end of the tax year and submit a R40 form?

Thanks

OneADay

Persumably then the R40 as thats for claiming repayment, the R85 is to be exempt from paying tax at source. Self assessment tackles repayments as well.

And you can claim repayment if you have actually been paid which in turn would depend on your saving terms.

On this basis, I would guess once your bank has paid you tax then you can reclaim any tax paid - how they will work it out, don't know. Guess they look at your residence status and bank records/certificates.

If you are leaving in August 2009, you could simply close and reopen new saving accounts and submit R85 form for the new saving accounts.

OneADay

Just a further thought, for the example you state 4k PAYE and 4K savings.

I am guessing yearly tax free allowance is around 4k for most people so you have already gone over that with the above figures with job earnings. So the tax of 20% on savings is not refundable?

meatandtwoveg

OneADay wrote: »

Persumably then the R40 as thats for claiming repayment, the R85 is to be exempt from paying tax at source. Self assessment tackles repayments as well.

And you can claim repayment if you have actually been paid which in turn would depend on your saving terms.

On this basis, I would guess once your bank has paid you tax then you can reclaim any tax paid - how they will work it out, don't know. Guess they look at your residence status and bank records/certificates.

If you are leaving in August 2009, you could simply close and reopen new saving accounts and submit R85 form for the new saving accounts.

Thanks for the replies, complicated issue, i do not think there exists a form to tackle both claim issues at the same time?

mrposhman

I'll be leaving next week for Australia. I was going to fill in an P85 and send along with my P45 once I receive it. I thought this would be ok for reclaiming my tax overpayments on my PAYE this year. Am I wrong? Whats an R40?

I was thinking that I could claim back my PAYE overpayments this way but would have to wait until the end of the tax year to make my tax return to get any other tax back or pay further tax if required.

meatandtwoveg

mrposhman wrote: »

I'll be leaving next week for Australia. I was going to fill in an P85 and send along with my P45 once I receive it. I thought this would be ok for reclaiming my tax overpayments on my PAYE this year. Am I wrong? Whats an R40?

I was thinking that I could claim back my PAYE overpayments this way but would have to wait until the end of the tax year to make my tax return to get any other tax back or pay further tax if required.

Whats an R40? = Claiming Savings interest back as part of your tax overpayment.

You are fine ignore this thread:beer: