Tax Rebate Articles – Tax Rebate Advice Tips and Resources for a Claiming A Tax Rebate Thu, 20 Jan 2011 18:54:58 +0000 en-US hourly 1 Claiming a Tax Rebate When Leaving the Country Tue, 05 Oct 2010 14:27:02 +0000 If you have only worked for part of the tax year you may be eligible to claim a leaving the countrytax rebate when you leave the country.  The official statistics showed that 255,000 non residents left the country in 2008, a 50 per cent increase over the previous year.

You may be eligible for a refund of some of the tax that you paid whilst working in the UK.  Many people do not know that they can often claim back any overpayment of tax that arose from only working part of the tax year.

Arriving in the Country

Everyone that works in the UK is given a tax free allowance. Your tax free allowance is the amount of income that you can earn before you are required to pay any tax. For the current tax year this allowance is £6,475 and next tax year this will increase to £7,475.  If you arrived in the UK towards the end of the tax year (April 5th) you may earn below the tax free allowance, and can therefore claim back any tax you paid from Her Majesty’s Revenue and Customs (HMRC).

Non Residents

You may be eligible for a tax refund if you become non UK resident.  However, becoming a non UK resident for tax purposes is not as straightforward as simply leaving the country.  You will only become non resident:

  • From the day after you leave the UK
  • If you have physically left the country
  • If your visits to the UK are less than 183 days in a tax year and average less than 91 days a tax year over a maximum of four consecutive years

Checks are likely to be done to establish that you have definitely left the UK.  For example, if you retain a property in the UK, HMRC might question you as to your intentions for the property if you have stated you are not planning to return to the country.

Leaving the Country

If you are leaving the UK permanently or indefinitely (leaving for a period of three years but where you have indicated that you may return in the future), you must tell HMRC by contacting the tax office that dealt with your affairs whilst you were in the UK.

You will be asked to fill in the form P85 to determine whether you are entitled to a tax refund.

Your tax office will:

  • Help you establish that you will definitely be a non resident
  • Determine whether you have to complete a UK tax return once you have left the country
  • Review your P85 form to calculate whether you are due a tax refund

Tax treatment of different sorts of income

Even if you become non UK resident, it doesn’t automatically mean that you are not liable for any tax in the UK or that you are due a tax refund.

For example, if you retain a property in the UK which generates a rental income, you will be liable for tax on this income.

However, when you leave an employed position in the UK, you are generally only liable for UK tax on your earnings up to the date that you left the job/UK.

Double Taxation Agreements

Different countries and states have their own tax rules and laws. When you receive income and gains from a source in one country and you are resident in another, you may find yourself in a position whereby you are liable to pay tax in both countries under their different tax laws.

To avoid paying tax twice in this situation, the UK has so-called ‘double taxation’ agreements (DTAs) with a large number of countries.

If you are a resident of a country with which the UK has a DTA, you are likely to be able to claim exemption or partial relief from UK tax on income from certain types of sources. The precise conditions of exemption or relief can be found in the relevant DTA.

What to do next

If you are leaving or have left the UK, you should contact your local tax office to let them know.  They will ask you to complete the P85 form to determine whether you are entitled to a tax refund.  You may have to provide documentation to them to prove your income such as P60 or P45 documents.

You should also remember that the deadline for claiming UK tax refunds is four years.  If you left the UK at anytime within the last four years, you may still be able to claim a tax refund.

Death, Taxes, and Chocolate Tue, 05 Oct 2010 12:02:05 +0000

By Alexander Peter

This is the first film by  Dr. Andrea Levinson, a holistic practioner and former geologists turned screenwriter. The film received a number of major nominations including “best screenplay” and “best director” and has been well received by a number of film critics.

The film is an adaptation of Dr. Levinsons 2005 play and is based  on real people and true events making the story compelling for this reason alone. The film is a dark comedy with elements of a mockumentary, highlighting the US Health agencies favouritism of the drug companies.

The film is shot in New Bern North Carolina and has an original soundtrack by various local musicians including Andrea and Phil Owens, Margaret Rose, Chantal Hallatschek and Glen Kolleda.

The movie tells the story of a holistic healer (Peggy Droz) a teacher (Catherine Trail) a captain (Ken Beals) and an Ex CIA Agent , turned insurance salesman(Greg Frucci) who agree to find an alternative to growing old gracefully. This leads to ‘Operation Bon Voyage au Chocolate’ a plan to leave the world in the most decadent fashion possible: A trip on a yacht with enough chocolate to send your blood sugar level into overdrive.

The movie has a good mix of comedy, romance and drama and tackles a number of issues facing people in this modern world, similar in the way that Office Space does. However the film is just too unbelievable to be taken realistically and the corny clichés and copious amount of facts about chocolate makes the film feel like infomercial for a candy store.

There is an interesting twist at the end of the movie which may be the only thing keeping you watching. Unless you have are seriously obsessed with chocolate, you might want to give this movie a miss.

Claiming A Tax Rebate As A Student Mon, 23 Aug 2010 01:03:10 +0000 The fact that you are a tax-paying working student does not mean that you are automatically entitled to a tax refund. However, the unique jobs and working patterns of students are what make the student a very likely candidate for tax-refunds. There are two main factors for this:

Low Income

Since fulltime students can hardly be fulltime workers, it is pretty obvious that they will not earn much. Sometimes, this income falls short of the annual tax-free allowance of £6,475 and hence the need to refund the student all the income taxes that he might have paid through the Pay As Your Earn system.

Intermittent Employment History

Since the student’s working schedule is highly dependant upon the academic calendar, it is expected that the student will look for a job or quit from one depending on how tight his schedule will be. This means that the student is therefore not likely to stay employed for the whole period within the tax-year. Since the tax-free allowance is distributed within the year with the assumption that the person will enjoy it throughout the year, the student is due a tax refund since he would still be having unutilized tax allowance.

To claim your tax-refund as a student, you still need the forms P45 to show when you left employment and the form P60, to show how much taxes you paid during the tax year.  If you happened to have lost these forms, then you can ask for statement of earnings from your employer. Once you have all these forms, you can send then to us to help you process your application or you can send them with a cover directly to the Inland Revenue.

How Long Does A Tax Rebate Take? Sun, 22 Aug 2010 01:02:42 +0000 This is one of those questions which people love to have specific answers for but which unfortunately, rarely have one. Although the taxman is very clear on by when you should have filed your returns and by when you should have claimed all your tax refunds, the issue of when they will pay you is pretty vague. However, claims are usually processed within 30 – 45 days. This is mainly true if you supply all the documentation that will be required.

In case you fail to provide all the proper documents within the stipulated time, you can be sure that your claim will be delayed. That is why it is always advisable that you provide all your required documents within the first claim. Such documents include the forms P45, P60, and forms P85 and P86 if applicable. The documents that you will be required to produce will depend on the reason for requesting a tax rebate.

However, sometimes you can submit all the required documents but still end up with a long duration of non-payment. If such a thing happens to you, it is advisable that you just call them to get to know what could be holding them back. The delay could probably be because a tired official at the Inland Revenue is simply dragging his feet and a call to the office may be all that is needed to get your application moving.

How To Apply For Tax Rebate Sat, 21 Aug 2010 01:01:04 +0000 There are millions of pounds in form of tax rebates that remain unclaimed every year. Many people tend to think, that if they pay their taxes as they are required to, then the taxman will help them correct every overpayment that they may have made.
Well, they are definitely wrong. If the Internal Revenue owes you some money, it is your job to find out how much they owe you and then apply for refund.

Let’s assume that you have identified the amount of money owed to you. This could be due to the fact that you worked only part of the year, or you are leaving the UK for over the six months. The first thing would be to get the forms P45 and forms P60.

The form P45 is given to you by your employer when you leave employment while the form P60 is given to you at the end of the tax year and it indicates the amount of money that you have paid as income tax for that tax-year. In case you cannot find these forms, then you should ask your employer to give you a Statement of Earnings which will be able to serve a similar purpose. You may also need to submit the form P91 which will show your work history and the forms P85/P86 for those who entered or left the UK during the tax year.

Once you have all these documents with you, you can then send them to us or you can send them to the Inland Revenue with a cover letter. Generally, you will be able to receive the check within 30 – 45 days.

UK National Insurance Rebates Tue, 17 Aug 2010 00:59:41 +0000 If you are working in the UK, you probably know that deductions are usually made from your salaries as contributions to the National Insurance. Part of these deductions is then forwarded to the state pension scheme. What you might not be aware of, is the fact that this is and you are allowed to have you funds directed to your personal pension plan (you are not allowed to take this money in form of cash.)

Since most people leaving the UK are unlikely to come and claim their pension from the state, it makes a lot of sense for them to transfer their contributions to the personal pension schemes. The good thing about personal pension plans is that you have a lot of flexibility in following them up compared to the state-run pension scheme.

Concerning the application for this transfer to take, you do not need to be making this request year in, year out. You just need to do it once and then the process will be automatic in the following years.

For a person leaving the UK, you will need to provide proof of the fact that you are planning to leave the UK for good. Once you can provide proof of this, you will then be able to get your money in cash so that you can start life somewhere else.

When Will You Get Your Tax Rebate Sat, 14 Aug 2010 01:02:12 +0000 Once you have submitted your forms P45, P60, or the statement of earnings, then the next thing that you are expected to do is to wait for the money to come to you. The question is; for how long should you wait for the cheque?

Once the application for a refund has been sent to the Inland Revenue, it takes from 30 – 45 days before your application is processed and the cheque released. Although this is the standard time for doing this, there are times when you may wait beyond this point and still not get your cheque. The main reason for this is usually the fact that you might not have sent all the required documents, or that you may have filled your documents in a wrong format. That is why you are always encouraged to do this through a professional who knows the right way to do these things.

If you choose to send the application yourself, it is always advisable that you call the office if it takes more than 45 days to get your cheque. They might act on it or they might tell you what the problem is, so that you are spared the trouble of waiting for a long time only for you to receive a letter telling you to make a few corrections on your form.