India UK Tax Refund Guide
Have you been working in the UK and are originally from India?
Are you planning to return to India soon? We can help you start your claim before you leave. You most likely qualify for a UK tax refund.
Many Indian nationals are returning home every year and are potentially missing out on tax relief that is rightfully theirs.
Who can apply to get this UK money back?
All workers who have been taxed by the UK government are permitted to submit a claim for a tax refund. You can claim for money you earned up to the last four tax years. It is not a claim requirement to still be living in the UK.
When you leave the UK your tax isn’t refunded automatically. An official claim must be sent to the UK Tax Office (HMRC).
Am I due UK tax back from India?
There are many reasons why employees can make a claim for a tax rebate based on the rules around different ‘tax allowances’. For example:
- There are tax allowances that are available for expenses you have paid in order to do your job like working from home and washing a work uniform.
- If you have a portion of your tax free personal allowance left unused, in the year that you exit the UK.
- If you are a UK non resident or if you’re a landlord that does not live in the UK.
- Your employer sends you to the UK under secondment.
How much UK tax can I claim back from India?
There is no limit to how large your claim can be however what you may be owed back does depend on your income and tax levels.
Our free UK tax refund calculator is easy to use and can help work out how much your tax refund could be.
The Central Board of Direct Taxes of the Government of India do not consider your UK tax rebate to be taxable income, and neither do HMRC. This is great news because it means that you get your full UK tax rebate amount tax free.
What do I need to make a UK tax refund claim from India?
There are 2 pieces of documentation we need to start a ‘Leaving the UK’ claim:
- P85 is an official form which states exactly when you left the UK and other information about your employment status.
- P45 is given to you when they leave a UK employer. A claim can still be made if you don’t have your P45.
How do I claim a UK tax rebate from India?
You need to fill a P85 leaving the UK form which can be completed and submitted online or posted directly to HMRC in the UK. If you complete a self assessment tax return in the UK you should only need to complete your tax return and not the P85 as well.
HMRC will process your P85 and repay any UK tax refund to a UK bank account or by cheque.
