One in three people who pay tax in the UK are entitled to a tax refund. If you’ve been working in the UK, you may be entitled to claim a UK tax rebate. In fact, the average refund due is a whopping £963! That's why we're super excited to have partnered exclusively with Taxback.com to help you get that money back in your pocket, where it belongs.
Taxback.com offer free tax refund estimates, as well as a "no refund, no fee" guarantee - meaning if you're not due a refund, you don't pay anything at all!
This page will run you through everything you need to know about the tax process in the United Kingdom - and at any time, you can punch your information in the easy to use UK tax refund calculator, and Taxback.com will start their no obligation assessment process with you. What could be easier than that!
How to file your tax return and claim your tax refund:
When you first arrive in the UK, it’s likely you’ll have a lot on your mind. After all, you’ll probably be keen to secure a place to live and a job as soon as you can. Plus – you’ll always want to find the time to see all the sights. Big Ben doesn’t photograph himself, you know! Meanwhile the British tax system will no doubt be the last thing on your mind. But it’s important to get a solid handle on your tax requirements when you arrive in the UK – this can save you a lot of stress and money in the long run. With that in mind, Mark Corcoran, Head of Content at Taxback.com is here to answer the most important questions on the topic and help you to save some money on your UK tax bill. Take it away, Mark!
First thing’s first – can you tell us a little about the UK tax system?
The UK tax year is a little unusual in that it doesn’t follow a traditional calendar. Instead, it starts on 6 April and ends on 5 April of the following year. This is important to keep in mind as you can only apply for your UK tax refund at the end of the tax year – we’ll come back to this later! If you work in the UK for an employer, it’s likely you will pay tax through the PAYE (Pay As You Earn) system. Your employer uses the PAYE system to withhold income tax and national insurance contributions from your wages each time you are paid.
I have just arrived in the UK. Do I need to do anything before I start working?
Yes. You’ll need to get a National Insurance Number (NIN) if you don’t have one already. This is a unique tracker HMRC uses to monitor your PAYE and National Insurance Contributions (NIC). You can get your NIN directly from HRMC.
Am I resident or non-resident in the UK? And does it really matter?
It’s important to determine your UK tax residency status as this can have a big baring of how much tax you will have to pay. For example, UK residents for tax purposes normally pay tax on their worldwide income as well as what they earn domestically. However if you are considered a non-resident, you will only have to pay tax on income you earn in the UK – this can include:
- Money you earn from employment or self-employment
- Benefits you get from your job
- Bank account interest
- Investment profits and dividends
- Rental income
- Most pensions
Typically you will be considered a resident for tax purposes, if you spend 183 days or more in the UK in a tax year. However, each of the below factors can also affect your resident status:
- Whether your home is in the UK or not
- If you work in the UK or abroad
- If you have family and other ties in the UK
- How long you spend in the UK
- Whether you've been resident in the UK in previous tax years