How can I estimate tax refund?

Jet

A colleague of mine is moving back to his home country.

I assume he is entitled to a tax refund and have sorted out all the relevant forms for him.

Is there anyway I can calculate how much he will receive back from the tax man?

CLAPTON

basically he is entitled to earn 5225 per year without paying tax and a further 2230 at 10% tax only. However the tax system gives him 1/12 per month of these allowances so they are spread evenly throught the year.

Assuming he is a standard rate tax payer...
So for each month he doesn't work he will be entitled to

a. 5225 /12 x 22% = £95.79 refund per non working month
plus
b. 2230 /12 x (22-10)% = £22.3 refund per month

giving 118 refund per non working month.

However I have no knowledge of oversees tax systems or how the UK taxman will view his oversees earning.

There is no refund of NI.

fengirl_2

It depends on how long he has been in the UK and from which country he came.

Jet

Thanks for the replies. He's from the States on a 2 year work permit which expires in May, although he's leaving during December. (Can't stand our grey winter, I think!)

fengirl_2

Clapton's reply is therefore correct.

Cook_County

We do not know if he is UK resident in the current 2007/08 tax year, because this will depend on whether or not he has been present for 183 days (not counting dates of arrival/departure).

If he is not UK resident he would not qualify for a UK personal allowance.

He could however qualify for detached duty relief or NOR relief so significantly increasing his potential UK refund.

This needs to be balanced against his US tax obligations, so the best answer is usually obtained by speaking with a dual US/UK qualified tax adviser over here.