returned to uk after 3 years in china - right amount of tax?

jimbob_3

Hi,

I went to china in oct 2004 - shortly after leaving university.

Prior to leaving i worked part time and earned approx £500 in the 2004 tax year.

I came back to the UK in August 2007 (having only spent a short time in the UK over the past 3 years)

I have now got a job and have been there since January this year

I gave my employer my P45 from 2004.

I have now got my first proper wage packet and seem to have had a LOT of tax taken away.

I have contacted the tax office to determine how i can reclaim this money and how i can get the correct tax code.

They have told me to supply evidence of the income i received whilst abroad, however the chinese dont have tax receipts so i dont not have anything that the tax office heare appears willing to accept.

Could somebody offer me some help as to what i can do to get back the money and get the proper tax code.

many thanks

j

tigtag02

The 2004 P45 is no good to your employer in the 07/08 (current) tax year.

You have probably been taxed at Basic Rate (BR) which means no allowences.

You are allowed to earn £5225 tax free in this tax year.

Unless HMRC provide your new employer with a tax code before you are paid in March you will have to reclaim your overpayment directly once you recieve your P60.

Come April you should be placed on the correct code (543L)

HTH

jimbob_3

ok - thanks for that.

Though im still not sure what would be the best strategy for trying to reclaim it as i dont have any evidence of my evidence of me working in china - though i do have my visa stamps.

Would it come back automatically?

thanks

fengirl_2

if you left the UK in Oct 2004 and came back in Aug 2007 and were not present in the UK for more than 90 days in each tax year, it would appear that you were not resident in the UK until Aug 2007 and are not therefore liable to tax on your Chinese earnings. Have you completed and sent in a form P86 (arrival in the UK)? if not, download one from HMRC's wensite and send it to your tax office, asking them to give a ruling on your residence status. I would think the request for evidence of Chinese earnings was requested by someone who hasn't got the full picture.
The worse thing is that its too late to change your code number for this year now, so you are faced with having to put in a repayment claim when you get your P60. However, you can ask HMRC to put you on 535L from 6 April, which will help you.