P85 questions ... I am leaving the UK.

NinjaSavingKat

As the title quite rightly says I am leaving work on the 12th September but leaving the country on the 4th November. My last payslip is going to be at the end of October.

I wish to claim back tax as per my personal tax allowance and just need to figure out a rough ball park figure of what I could be expecting.

I spoke with HMRC today and a rather abrupt and unhelpful guy was on the other end. So I have come here to my refuge to ask for the help of any "in the know" MSE'ers...

I know my personal tax allowance is £10k. I get no expenses etc through work in any shape or form. The HMRC guy did tell me that they work it out as £833 a month you are allowed tax free for the year (£10,000 / 12 )..but considering it will only be 7 months of this year that I am working I will assume my monthly allowance is bumped up to £1428 (£10,000 / 7 )...

Am I right?

And would this £1428 be deducted from my GROSS pay amount before tax is deducted..?

These might seem like stupid questions but I just need to get it right in my head before I confuse myself even more..;-)

zygurat789

NinjaSavingKat wrote: »

As the title quite rightly says I am leaving work on the 12th September but leaving the country on the 4th November. My last payslip is going to be at the end of October.

I wish to claim back tax as per my personal tax allowance and just need to figure out a rough ball park figure of what I could be expecting.

I spoke with HMRC today and a rather abrupt and unhelpful guy was on the other end. So I have come here to my refuge to ask for the help of any "in the know" MSE'ers...

I know my personal tax allowance is £10k. I get no expenses etc through work in any shape or form. The HMRC guy did tell me that they work it out as £833 a month you are allowed tax free for the year (£10,000 / 12 )..but considering it will only be 7 months of this year that I am working I will assume my monthly allowance is bumped up to £1428 (£10,000 / 7 )...

Am I right?

And would this £1428 be deducted from my GROSS pay amount before tax is deducted..?

These might seem like stupid questions but I just need to get it right in my head before I confuse myself even more..;-)

Afraid not, but it's good news

Your PAYE will continue as usual, allowing you to earn £833 pm tax free.
When you complete the leaving form your tax will be reworked and you will be allowed to earn £10,000 tax free for a year or part thereof.
That's got to be good news

NinjaSavingKat

Not really considering I don't intend to be in the UK or earning money. I will literally be a digital nomad with no fixed address and I have saved all the money I need to live for at least a year. I need to get back all tax returned before I go.. which is the point of the P85 in the first place is it not..?

Savvy_Sue

NinjaSavingKat wrote: »

Not really considering I don't intend to be in the UK or earning money. I will literally be a digital nomad with no fixed address and I have saved all the money I need to live for at least a year. I need to get back all tax returned before I go.. which is the point of the P85 in the first place is it not..?

They won't let you earn more tax free in the months before you give up work, because the best laid plans and all that ... nor will you necessarily get the tax refunded before you leave.

Will you be retaining a bank account of any kind, or cleaning them all out and sewing cash into your socks? Do you have any friends or family with UK addresses? If HMRC have your bank details they can usually make the refund that way, and if you make sure you've given them an address where post for you will be opened and the details passed on to you electronically, that would cover the alternative. Just in case they send you a cheque, you could leave a paying in book with your obliging friend or family member.

NinjaSavingKat

I will retain a UK bank account and the payment into that or cheque to my Mum is not the issue.

I was asking primarily about whether gross or net amounts were taken into consideration when they told me to "deduct £833 a month" and whatever is left is taxed at 20%...

Another person has already contacted me and advised it's by gross and my repayment will probably estimate around £700 (ish)....that with adding up what I have already earned and what I am predicting will come my way in the next three payslips.

Not as much as I thought but better than nothing. However I don't care if it takes months to get to me, as long as I get it at some point as I have already accumulated enough funds to tide me over.

Thanks

Cook_County

Since you are not ceasing to be UK resident why not register for self-assessment and file a tax return online on 6 April 2015?

JasonPr

Cook_County wrote: »

Since you are not ceasing to be UK resident why not register for self-assessment and file a tax return online on 6 April 2015?

Why do you say that NinjaSavingKat will stay UK resident? I don't think we have enough information to say one way or the other.

NinjaSavingKat

JasonPr wrote: »

Why do you say that NinjaSavingKat will stay UK resident? I don't think we have enough information to say one way or the other.

Exactly. my first post says clearly I am leaving the country. Off to South East Asia.. then traveling for at least 5 years.... I will only ever be back to the UK for visits to my parents!

agrinnall

Check your residence status for tax purposes here.

http://www.hmrc.gov.uk/international/residence.htm#1

chrisbur

Might be simpler to use a P50 and declare "you do not expect to go back to work"

NinjaSavingKat

chrisbur wrote: »

Might be simpler to use a P50 and declare "you do not expect to go back to work"

Interesting. Never heard of this. I shall investigate....