Tax Refund
The UK tax year runs from 6 April to 5 April of each year.
Single people during the 2008/09 tax year receive a tax-free personal allowance of £5,435. Income tax is then deducted at the following rates:
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Worked example:
If you have a job with a salary of £45,000 per annum, you will pay £8,626 in income tax. Your actual take-home salary will be £36,374.
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Basic rate at 20% on £36,000Can I get a tax refund?
If you have earned less that £5,435, worked for only part of the tax year or work for more than one employer at any one time, you may be entitled to a tax refund.How do I apply for a tax refund?
To apply for a tax refund you need to complete a tax return and submit your original P45/P60 to the Inland Revenue.What is a P45?
A P45 is a summary of the amount of money you have earned, and the amount of tax you have paid, during your employment. Your employer will give you a P45 when you stop working for them.What is a P60?
A P60 states the amount of money you have earned, and the amount of tax you have paid, during the tax year. Your employer will automatically issue you with a P60 at the end of the tax year.Can I apply for a tax refund myself?
Yes, a tax return application form can be obtained from your tax office. However, it's much easier to use a tax agent who specialises in tax rebates for working holidaymakers. They offer a quick and simple service and you're likely to get your money much quicker - some tax agents even offer a 'No rebate No fee' policy, so you have nothing to lose by making an application.When can I apply for a tax refund?
You can apply for a tax refund at the end of the financial year or, if you have stopped working and you have no intention of returning to work during the current tax year (for example, because you are leaving the UK) you may apply at any time.More information is available on the Inland Revenue website www.inlandrevenue.gov.uk.
