If you’ve been on a working holiday to the UK you should check that you haven’t paid too much UK tax.
We hope you enjoyed your UK working holiday and just want to make sure that you didn’t accidentally leave behind some overpaid tax. If it turns out that the UK Tax Office (HMRC) do owe you some money back, it’s better to make a claim sooner rather than later.
The reasons behind why you could be owed UK tax back do differ from person to person and being in the UK on a working holiday is just one of them.
How could I have overpaid my income tax?
An excellent point because it just comes straight off your wage. If you were employed (as opposed to self employed) you paid income tax through the Pay As You Earn (PAYE) system. This means you are allocated a UK Tax Code and which tells your employer what proportion of your wages to send to Her Majesty’s Revenue and Customs (HMRC, the Tax Office’s proper name). You didn’t need to do anything once your employer had all your details.
The reasons you could have overpaid your UK income tax are the same as for any other person paying UK tax. You may have been given the wrong Tax Code, which may mean you paid too much, or too little, tax. If you had work expenses, did you know that you are expected to make a claim for tax relief on those costs? That’s for things like washing your work uniform, belonging to a Trade Union or professional body, buying your own tools or safety equipment and mileage for business travel in your own vehicle.
In some cases you may have come to work in the UK under a secondment from your employer which can result in additional tax being owed to you.
Do I need a lot of paperwork?
Ideally you will have your payslips, P45 and P60 forms, and your P85 form if you’re leaving the UK for at least an entire UK tax year. If you were self employed, perhaps as a contractor, you will need your self assessment tax returns.
When should I apply for my UK tax rebate?
You do not need to still be in the UK to make a claim. If you are in your holiday period and will not be working for the rest of the tax year, then you can claim while you are still with us. Otherwise, you can submit your claim at the end of the UK tax year (5th April). You can backdate your first claim for up to four tax years, just in case this is not your first working holiday.