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

UK tax system — overview

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

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

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 July 6.

Ways to recover overpayment

Method 1: Automatic refund (easiest)

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 January 31 (online) or October 31 (paper) for the previous tax year
4. HMRC calculates balance — refund or due

Method 4: P85 (leaving 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 tax refund company

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

• Charge 25-40% fee
• Handle the entire process
• 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

• October 5 after the end of the tax year — register for self-assessment (if new)
• October 31 — paper return deadline
• January 31 — online return deadline + payment due
• July 31 — 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" — deduct 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 January 31 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 tax-free
• Clearly keep all docs for 4 years