Company still paid me after I left the UK - what does this mean for my tax?

cbanks

Hello,

I am in a fairly unique position where my previous employer was still paying me for a few months after I left the UK to go travelling (despite handing in my notice and resigning). 

After checking my UK account for the first time in months, I noticed this and did the right thing - I got in touch with the company immediately and paid it all back. 

My question is, what does this mean when filling out my P85 form? I have technically been paying income tax when I haven’t been working, and would this feed into a potential tax rebate as part of the P85  form when moving abroad? 

Any help or a further understanding of the tax implications of being paid when not working, and any advice on being in the unique position of also moving abroad while dealing with this - would be much appreciated. 

Cheers,
Col

eskbanker

cbanks said:

I am in a fairly unique position where my previous employer was still paying me for a few months after I left the UK to go travelling (despite handing in my notice and resigning). 

After checking my UK account for the first time in months, I noticed this and did the right thing - I got in touch with the company immediately and paid it all back.

My question is, what does this mean when filling out my P85 form? I have technically been paying income tax when I haven’t been working, and would this feed into a potential tax rebate as part of the P85  form when moving abroad? 

Just to be clear, you paid back the net amount, i.e. what had actually arrived in your bank account after PAYE deduction of income tax, and are now all square in cash terms?

If so, I can't see that you're due anything from HMRC, although the employer presumably is, not sure how that's handled though....

sheramber

Why would you be the tax deducted back as  you didnlt pay it in the forst place.

You got X in your bank account and you repaid X ,  so you are back where you started.

Your ex employer will have to sort out the tax and NIC  with HMRC  as they are out of pocket by those amounts.

They paid Y to HMRC , but were not due to pay anything.

mybestattempt

You haven't given dates but I'm assuming you left your employment and went abroad during the current tax year.

You paid back to your former employer the net amount they paid you after PAYE tax was deducted.

Your former employer should have then corrected the information about your pay and tax which they originally sent to HMRC and consequently they effectively recover any PAYE tax they had paid over to HMRC in error.

Assuming they did, your tax records should now show only the pay due and PAYE tax deducted from it up to the date you left that employer and those are the amounts to include on the form R85.

You may want to check first with your with former employer to confirm what the corrected figures are and then check that they are now reflected on your personal tax account.

cbanks

Great, thanks for the help. 

And yes, I’ve paid back the net amount. I’ll have a check with my employer to make sure these deductions have been made to my tax account.