Reclaiming Tx via R40 form...

Hoddie_2

And this 10% tax 'credit' seems to be a contradiction in terms, they're not actually giving me this 10%, they're taking it away from me!

It is a tax credit in the sense that you're deemed to have already paid 10% tax on those dividends, but you haven't actually paid it so under no circumstances will it be repaid. It is important in that it allows non-higher rate taxpayers to receive such income without needing to pay tax on it.

John_Pierpoint

Hoddie wrote: »

It is a tax credit in the sense that you're deemed to have already paid 10% tax on those dividends, but you haven't actually paid it so under no circumstances will it be repaid. It is important in that it allows non-higher rate taxpayers to receive such income without needing to pay tax on it.

Once upon a time - ie before Gordon Brown; you were deemed to have paid standard rate tax and non tax payers such as unemployed wives and students and pension funds etc. could reclaim the tax that the company had paid on their behalf - hence the present fuss about pension funds going down the tubes. (One of the first stealth taxes).

More to the point by reducing the tax paid by the company in advance to 10% and deeming that to be "standard" rate it meant that extra tax could be collected from the higher rate (40%) tax payers as they had only "paid" 10% so far - I suppose the higher rate tax payers tend to be the ones who can "afford" to invest in shares?

alahol2

I have just had an R40 returned, un-actioned, because they want the original copy of the P60, as if they haven't got those figures from the employer already. They are a shambles.
Anyway, back to your question, on the R40 it states... 'If you are not a UK resident do not use this form; please contact us.' So I guess there is another form that you should be using.

Good luck, you'll need it... along with a lot of persistence:(

Cat1

alahol2 wrote: »

I have just had an R40 returned, un-actioned, because they want the original copy of the P60, as if they haven't got those figures from the employer already. They are a shambles.
Anyway, back to your question, on the R40 it states... 'If you are not a UK resident do not use this form; please contact us.' So I guess there is another form that you should be using.

Good luck, you'll need it... along with a lot of persistence:(

With regards to the P60 issue, your employer legally has until 31st May to submit the details to HMRC. You would have submitted your R40 claim long before the 31st May if they have just sent it back to you now. Please bear in mind that employers quite often give their employees their P60's weeks before they submit the info to HMRC.

As the OP is non resident in the UK he would be dealt with by a specialist section of HMRC (Centre for Non Residents) and they instruct the customers local tax office as to how a case should be administered. I assumed as the original poster had already been in contact with CNR as he already had the repayment claim forms.