Leaving UK for Australia - tax to pay?

kiwigirluk

I've been made redundant, and am trying to calculate any tax I need to pay as I've left the UK.

My redundancy date is 30 September 2011, and I left the UK on 17 October.

My P45 shows total pay as £xxxxxx and total tax as £xxxxx. My tax code was 692L; in August I received a letter from HMRC advising that I had been changed from 733L as I received medical insurance of £xxxx. The same letter advised as a result, I had shortpaid tax of £xx.

My final pay slip shows;
Total gross £xxxxx
Taxable gross £xxxx
Tax paid £xxxx
Employees NI £xxxx
Employers NI £xxxx
Pension contribution £xxx/£xxx

I'm not sure how, but I've ended up at the R43 page at HMRC; do I get the full tax free allowance for 2011? Do I owe any tax?

Mikeyorks

You need to fill in a P85 in order to get it sorted? Personal allowances are never pro-rata ...... but the P85 (with detail from your P45) should resolve it :-

http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=5Ay4eloD0nw&formId=766

pjclar02

Hello there

Based on the figures provided, I believe you will actually be due a tax refund, potentially as much as £1,200. However, I do have a few questions to verify this:

1) Are you sure about the "taxable gross" figure, as this seems considerably lower than the total gross figure. £11k is quite a variance but presumably this represents tax-free redundancy pay?

2) What are the two pension contribution figures? Presumably one is the net employee contribution and the other is the employer contribution?

3) Do you know what your pro-rata medical insurance entitlement would be from 6 April 2011 to 30 September 2011?

Best wishes

Paul

kiwigirluk

thanks for your reply;

Yes the £xxk is the non taxable redundancy pay, and the pension figures are my contribution and the employers contribution.

I'm not certain what the medical insurance contribution works out to, but assume its probably proportionate for the year (e.g £xxx for six months)

ceeforcat

For those of us old enough to remember 'repaying allowances' - I calculate that you have used exactly half for this tax year. You are therefore due a refund of £3460 @20% or £692

However as pclarj02 states, it appears to be more than that and I am struggling with the huge difference.

According to me, tax payable at month 6 on a code of 692L should be £2554.80, some way off the figure that the op has stated.

pjclar02

Thanks for posting the additional information. ceeforcat and I both seem to be in the same position whereby we are struggling to reconcile the numbers. Specifically, for the tax codes you have mentioned below, the tax deducted from your taxable gross salary does not seem to tie up.

However, I believe that you will be due a tax refund regardless, it is just the amount of the refund that is in question depending upon which of the below figures are accurate.

As stated by Mileyorks in the original response, when you leave the UK you should submit a P85 to HM Revenue & Customs. Unfortunately, the forum won't allow me to post a link to the form as I am new to the forum, but you can find this on HMRC's website.

If you complete this and submit it to HMRC with your P45 then they should send you out the refund. Be wary that when your ex-employer submits their P11ds after April 2012, if a P11d is prepared for you including medical insurance, you will need to account for tax on this.

I hope this is of some help.

Best wishes

Paul

ceeforcat

Did not know that pjclar02 - when are you regarded as being sufficiently responsible to post links? See below in any case.

http://www.hmrc.gov.uk/cnr/p85.pdf

pjclar02

Nor me - I was merrily clicking away trying to post my comment, until I spotted a warning at the top of the screen denying me! Hopefully I will earn the right soon!! I can understand the logic seeing some of the nonsense that gets posted on other forums

Mikeyorks

Is post #2 and the link to the P85 only visible to me ????

The taxable pay allied to the tax deducted only makes any sense if the tax deducted figure includes an element at 40%. Probably from a bonus.

Either that or the P45 was created at an earlier month than has been indicated.

kiwigirluk

I did receive an annual bonus of £xxx.. how does that affect any tax rebate/owing?

Mikeyorks

It increases it. As it means some element of tax was paid at 40%. As the tax system envisaged you were going to continue at that level of pay and that pushed you minimally into the 40% arena.

But - you asked for advice and I gave that at post #2. You will get the full allowance for the year - but you must complete a P85 to progress it.