P85 - dont forget it !

[Sweetdreaming 397]

Hi,

 

So after I had been in the US a few weeks, i had read something about claiming back income tax rebate if leaving the UK [plus it gives notice that to them that ive actually left]. I was in no rush to do this as I figured that as i was paying PAYE income tax automatically I would always be paying the correct amount with the amount divided up equally over the 52 weeks of the year. Anyway, i filled in the online P85 form, and a few weeks later a letter from Inland Revenue arrived in the post to my US address, I figured it would just give me a zero balance nothing owed or to pay, but I couldnt believe it when I read they owed me close to a months worth of my previous salary with cheque attached ! Talk about an early christmas gift !

I dont often see much mention about it on these forums at least not recently, and YMMV but its something I would now 100% recommend !

 

https://www.gov.uk/government/publications/income-tax-leaving-the-uk-getting-your-tax-right-p85

[Zoeeeeeee 797]

7 hours ago, skjourney said:

Hi,

 

So after I had been in the US a few weeks, i had read something about claiming back income tax rebate if leaving the UK [plus it gives notice that to them that ive actually left]. I was in no rush to do this as I figured that as i was paying PAYE income tax automatically I would always be paying the correct amount with the amount divided up equally over the 52 weeks of the year. Anyway, i filled in the online P85 form, and a few weeks later a letter from Inland Revenue arrived in the post to my US address, I figured it would just give me a zero balance nothing owed or to pay, but I couldnt believe it when I read they owed me close to a months worth of my previous salary with cheque attached ! Talk about an early christmas gift !

I dont often see much mention about it on these forums at least not recently, and YMMV but its something I would now 100% recommend !

 

https://www.gov.uk/government/publications/income-tax-leaving-the-uk-getting-your-tax-right-p85

It's my understanding that if you emigrate from UK to USA, you can claim back all the income tax you've paid in the current tax year - so it's not necessarily that you've paid the wrong amount historically. And yes, if you've paid tax in the last year, definitely worth filling it in (did mine a week or so ago, so am looking forward to getting their response!) 🙃

[Wuozopo 4,293]

When I got my refund it had amounts from 2 years itemized by year, so they definitely over collect. You owe U.K. tax on whatever income you earned prior to leaving, but they calculate if they collected too much in 2019. 

[Richard Purves 58]

Yeah the rules have changed a bit, but it does mention "split year treatment". So they calculate tax based on projected yearly income and if you leave before that, then likely you've overpaid and they owe you some money. You'll need parts 2&3 of your last P45 too.

 

https://www.gov.uk/tax-right-retire-abroad-return-to-uk

[Dags 134]

On 12/9/2019 at 9:11 AM, Sweetdreaming said:

Hi,

 

So after I had been in the US a few weeks, i had read something about claiming back income tax rebate if leaving the UK [plus it gives notice that to them that ive actually left]. I was in no rush to do this as I figured that as i was paying PAYE income tax automatically I would always be paying the correct amount with the amount divided up equally over the 52 weeks of the year. Anyway, i filled in the online P85 form, and a few weeks later a letter from Inland Revenue arrived in the post to my US address, I figured it would just give me a zero balance nothing owed or to pay, but I couldnt believe it when I read they owed me close to a months worth of my previous salary with cheque attached ! Talk about an early christmas gift !

I dont often see much mention about it on these forums at least not recently, and YMMV but its something I would now 100% recommend !

 

https://www.gov.uk/government/publications/income-tax-leaving-the-uk-getting-your-tax-right-p85

how long did you wait to receive letter from UK to US? It's been a month since I filled it online and I haven't received anything yet...

[Sweetdreaming 397]

I think it was about 4-6 weeks.

[Dags 134]

5 minutes ago, Sweetdreaming said:

I think it was about 4-6 weeks.

awesome, thanks!  so they're still got couple weeks then lol

[Sweetdreaming 397]

1 minute ago, Dags said:

awesome, thanks!  so they're still got couple weeks then lol

yeah ! keep us updated !

[Bug&Bug 147]

The other thing to mention ( and I might be totally wrong since this whole taxes thing is a nightmare i do not understand) is that once you are non resident, if you still get uk income you will have to do a self assessment (wich cannot be done online, only by post or using commercial software).

 

I have requested an UTR so i can do my 21/22 self assessment and request relief based on double taxation treaties.

 

Correct me if its completely wrong, ive spent hours on the hmrc website and phone and still dont understand anything.