Tax Refund in the UK – HMRC, Self-Assessment, P85, Emigration, How to Recover

UK tax system – overview

UK tax year: 6 April – 5 April (NOT calendar).

Income tax is applied PAYE (Pay As You Earn) – the employer deducts from each paycheck.

Tax bands 2024-25 (England, Wales, NI)

Band	Income	Rate
Personal Allowance	£0 – £12,570	0%
Basic rate	£12,571 – £50,270	20%
Higher rate	£50,271 – £125,140	40%
Additional rate	Above £125,140	45%

Scotland has its own bands.

National Insurance

Additional tax:

• Class 1 employee: 8% (£12,570-£50,270), 2% above
• Class 4 self-employed: 6% (£12,570-£50,270), 2% above
• Funds state pension, healthcare, benefits

Who can recover overpayment

Common situations

• You worked only part of the tax year (started in November) – full Personal Allowance but used proportionally
• You changed jobs – emergency tax code applied (BR, OT)
• You left the UK before 5 April – unused Personal Allowance
• Multiple jobs – incorrect tax codes
• Self-employed losses
• Unclaimed work expenses (mileage, tools, uniform)
• Emergency tax codes

Emergency tax codes – flags

• BR: 20% on everything (no Personal Allowance)
• 0T: 20%/40%/45% without Personal Allowance
• M1, W1: monthly/weekly basis (no cumulative)
• K codes: prefix K – additional tax due (rare)

Standard tax code: 1257L (Personal Allowance £12,570).

Key documents

P60

End-of-year statement from employer showing:

• Total earnings for the tax year
• Total tax paid
• Total NIC paid

Issued by 31 May (after the end of the tax year on 5 April).

P45

Issued when you leave an employer. Shows:

• Income to date
• Tax paid to date
• Tax code

Gives to the next employer to set up correct tax. ALWAYS KEEP.

P11D

Shows benefits in kind (private medical, company car). Issued by 6 July.

Ways to recover overpayment

Method 1: Automatic refund (the simplest)

HMRC sometimes automatically reviews after the end of the tax year (April):

• If it sees an overpayment → sends P800 letter
• P800 = "End of Year Tax Reconciliation"
• In the letter – how to recover (online, cheque)

Method 2: Online via HMRC personal tax account

1. Create an account at gov.uk/personal-tax-account
2. Verify identity (Government Gateway ID + verification)
3. Check "your income and tax"
4. Apply for a refund if due
5. Refund: bank transfer 5-10 days

Method 3: Self-Assessment

Required if:

• Self-employed earning £1,000+
• Income > £150,000
• Multiple income sources
• Foreign income
• Rental income
• High Income Child Benefit Charge

Process:

1. Register for Self-Assessment (if not registered)
2. You will receive UTR (Unique Taxpayer Reference) – 10 digits
3. File annually before 31 January (online) or 31 October (paper) for the previous tax year
4. HMRC calculates balance – refund or due

Method 4: P85 (leaving the UK)

If you are leaving the UK:

• Submit P85 to HMRC
• Form online or by mail
• Attach P45 (from last job)
• HMRC calculates refund
• Payment to UK bank account or cheque (possible overseas)

Method 5: Through a tax refund company

Companies specializing in UK tax refunds for foreign workers (especially Polish):

• Charge a 25-40% fee
• Handle the entire process for you
• Easy but expensive
• Examples: Taxback.com, RIFT, Tax Refund Now

NOTE: You do NOT need them. You can do it yourself for FREE through HMRC.

Self-Assessment – when you must

Obligation

HMRC will send a "notice to file" if you must. Or you must register yourself if:

• Self-employed (£1k+ income)
• Sole director of a limited company
• Foreign income
• Rental income
• Investment income > £10k
• High earner (£150k+)
• Capital gains
• Money from trust

Deadlines

• 5 October after the end of the tax year – register for self-assessment (if new)
• 31 October – paper return deadline
• 31 January – online return deadline + payment due
• 31 July – second payment on account due (if applicable)

Penalties

• £100 for 1-day late filing
• Daily £10 fines after 3 months
• 5% tax due after 30 days
• Plus interest on unpaid tax

Special situations

You worked only 6 months, then returned to Poland

Earnings: £20,000 in 6 months. Personal Allowance £12,570. Should pay tax only on £7,430.

PAYE may calculate "as if full year" – deducting more.

P85 or Self-Assessment recovers the difference.

Multiple part-time jobs

Each job may have a BR tax code (no Personal Allowance) – both deduct 20% on everything.

Should claim Personal Allowance on the highest-paying job – submit Self-Assessment to fix.

Self-employed Polish worker in the UK

• Register for Self-Assessment (CIS if construction)
• Pay Income Tax + Class 4 NIC + Class 2 NIC
• Claim allowable expenses (tools, vehicles, materials, accountant)
• £1,000 trading allowance (small amount – claim even without Schedule C)

Construction Industry Scheme (CIS)

Many Polish construction workers operate under CIS:

• Contractor deducts 20% (or 30% if not registered)
• You file Self-Assessment to claim a refund
• Typically ~£3-8k refund

Construction worker fixed term

Temporarily in the UK for a specific construction project – often overpay tax.

Polish student working in the UK

• Full Personal Allowance £12,570
• Student loan – check if applicable
• Often overpay if part-time work

Allowable expenses (self-employed)

• Travel (business – 45p/mile first 10k, 25p above; or actual)
• Office costs (rent share, utilities, internet)
• Tools, equipment
• Uniform, protective clothing
• Marketing, website
• Professional fees (accountant, insurance, legal)
• Training (related to existing trade)
• Business meals (limited)

How to get tax history

• Online personal tax account – history for 4 years
• Phone HMRC: 0300 200 3300
• Request P800 or P45/P60 from employer

How far back can you claim

4 years back max (extended in some cases).

So in 2025: you can claim back to the 2020-21 tax year.

Practical tips

• P60 – keep from every employer
• P45 – keep when leaving a job
• P85 – when leaving the UK
• Online tax account – best tool
• UTR – crucial for Self-Assessment
• Don't pay 25-40% to refund companies – do it yourself
• 4 years back max
• Self-Assessment 31 January online deadline
• CIS construction workers – most overpay tax
• Emergency tax codes (BR, OT) – check yours
• Tax refund average £1-3k for Polish workers
• Personal Allowance £12,570 without tax
• Clearly keep all docs for 4 years