Maximising tax rebates for foreign workers in the UK
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If you’re a non-UK national who has been working in the UK, you may be due to claim a tax refund if:
- You have left the UK
- You were short-term employed in the UK
- You incurred work-related expenses
- You didn’t work a full tax year
- You were made redundant
- You were on an emergency tax code
The Taxback team are here to help you get your maximum refund.
UK tax refunds for PAYE workers who are non-UK nationals
If you worked in the UK as an employee, typically you will pay tax through the PAYE (Pay As You Earn) system.
Many foreign workers in the UK – such as temporary visa holders and backpackers – actually overpay on their tax bill and are entitled to claim a tax rebate.
In order to claim your refund, you must file your tax return.
The Tax Quick Refund team are here to help you claim your maximum UK tax refund. We get UK Tax Quick Refund for thousands of people every year.
What do I need when applying for my UK tax refund?
To apply for a UK tax rebate you will need either your P45 or P60.
You will also need details of any work-related expenses you incurred.
Tax refunds for backpackers in the UK
Did you work for an employer (either full or part-time) while in the UK as a backpacker?
If you did not work for an entire tax year (6 April to 5 April), it’s likely that too much tax was deducted from your wages and you are due a refund.
The average UK tax refund is £963.
You should check whether you are due tax back if:
- You arrived in the UK part way through the UK tax year and you leave before the end of that tax year
- You have or had more than one job in the same UK tax year
- Your job was made redundant
- You were already present in the UK at the start of a tax year and you left the UK before the end of that tax year
- Your employer(s) have operated an incorrect PAYE code against your employment income
Tax refunds for UK citizens working abroad
An overpayment of tax also occurs for UK nationals (and long term UK residents) that leave, or return to the UK after being abroad.
If you plan to leave or have returned to the UK during the tax year and you have earned income from employment in the UK, it’s likely you are due a tax refund.
Taxback will handle all the tax paperwork for you and ensure you receive your maximum UK tax rebate.
UK PAYE tax refunds FAQs
In the UK taxation year differs from the calendar year. It runs from 6th April in the current year to 5th April in the next.
As a general rule you’ll be due a refund in the following circumstances:
- You commence work in the middle of the tax year
- You stop working in the middle of the tax year
- You have a break in employment during the tax year
- You incur expenses which are allowable against your employment income
- Your Coding Notice was incorrect
- You were on an emergency tax code
Firstly, you need to acquire a NIN (National Insurance Number). This is the unique tracker HMRC will use to keep track of your PAYE and National Insurance Contributions (NIC).
If you’re British, you’ll get your NIN automatically when you turn 16. If you come to the UK to work then you’ll need to arrange a NIN, you can contact the National Insurance Contributions Office at 0300 200 3500.
Yes, but the rules are complex and the class of expenses is very narrow. The key is that the expenses must be “wholly, exclusively, and necessarily” incurred for the employment. Expenses which may be claimed include the following:
• Temporary workplace – travel, accommodation, subsistence
• Professional subscriptions to recognised bodies i.e British Medical Council, Institute of Engineering etc.
• Tools which you are required to provide for your employment (e.g a carpenter who must provide his own hand tools)
• Uniforms – cost and maintenance
• Business travel – where employee must provide his own transport (note that if you use your own car then relief is given on the number of miles you travel – you should keep a record)
Your Tax Quick Refund account manager will advise you on what expenses you can claim.
You can claim your tax refund from the past four years.
If you are leaving the country during a financial year and either won’t be working again in that financial year or are leaving the UK permanently or indefinitely then yes you can claim a refund from HMRC upon departure and won’t have to wait until the end of the tax year.
If you are leaving temporarily and will be working elsewhere in the tax year that you leave e.g. if you go to Australia on a working holiday visa, then you may have to wait until the end of the tax year to get your UK Tax Quick Refund. It will all depend on your exact circumstances, but we can check this out for you and let you know.
PAYE stands for Pay As You Earn. PAYE is the system of tax collection from employees in the UK, where taxes are collected with each payment.
Most PAYE workers in the UK are not required to file a tax return. However, many employees in the UK are due a tax refund. The only way to claim your Tax Quick Refund is to file your return.
What’s more, if you earned income outside the PAYE system in the UK, you may be required to file a tax return.
Tax code is used by your employer to work out how much Income Tax to take from you. Anyone employed or paid via PAYE will be given a tax code by their employer via HMRC, which will be shown on their payslip, P45, and P60 forms. The tax code is made up of numbers and letters in the end. 1257L is the tax code currently used for most people who have one job or pension.
You should be aware of the following:
- P46 employee (no P45): Issued to employees by employer when they start work and they have no P45 from a former employment;
- P45: Issued to an employee by the employer when the employee leaves that employment.
- P60: Issued to an employee by the employer at the end of a tax year. It is a summary of pay, tax deducted and National Insurance deducted.
- P11D: Issued to the employee by the employer at the end of the tax year. It reports all Benefits in Kind the employee has received during the tax year.
You should keep any documents you receive from your employer (P45, P60, P11D) as these are required to file your claim. If you are claiming for tax-deductible expenses, then you should keep sufficient records to satisfy HMRC if they decide to carry out an audit on your file.
Real Time Information (RTI) for PAYE only changes the process of reporting PAYE, not the way it is calculated. RTI can only report the data HMRC already has, without checking the accuracy of this information, so you may be underpaid or even have your refund delivered to the wrong address.
Meanwhile, Tax Quick Refund will check all your paperwork before sending it to HMRC, make sure it adheres to tax law and that all the necessary information is included so that you get the maximum tax refund possible.
The average UK PAYE Tax Refund is £963
If you’ve been an employee in the UK, you probably have paid tax through the PAYE (Pay As You Earn) system. One in three people in the UK has overpaid tax so there’s a good chance you may be due to claim a UK tax rebate.
The amount you get back depends on a number of factors like, for example, how long you’ve been working, the type of work you did and whether or not you are eligible to claim back any work-related expenses. When you register for a UK tax refund with Tax Quick Refund, we’ll check all that for you.
Useful UK tax refund facts
- The UK tax year runs from 6 April – 5 April annually
- You can be eligible to claim a UK tax refund if your period of employment ended before the end of the tax year
- Your UK tax refund can increase if you’re eligible to claim back UK-related expenses
- If you have sources of income other than from your employment, for example rental income, you may need to file a UK self-assessment tax return