Tax refund London
Close-up of Refund on a tax return form with a pen.

According to the laws in force in Great Britain it is possible to recover a part of the taxes paid.
There are many voices and incorrect discussions that we hear on this topic every day. For this, he has decided to create a new guide on the HM Revenue & Customs site.

If you are an employee

I do not have the National Insurance Number yet, and I am in the emergency tax code, when will I receive the taxes that I have overpaid ?:
The company you are stopping must return the taxes paid to you once you have obtained the National Insurance Number. Usually the money is received in the salary following the exit of the emergency tax code. If the fiscal year ends before this happens, the Tax Office will send you the payment.

What do you have to do if you leave your job
It is important to request the P45 module from the company for which you work. If you do not start a new job and do not ask for the benefits, you will be eligible for a refund of part of the taxes paid. After a month then you will ask for the P50 module that you will have to complete and send to your Tax Office next to the second and third part of your P45 module. The return is made with a period of 28 working days.

I’m a student, why do I pay the taxes?
Each individual regardless of age, has to pay taxes if the tickets are greater than their compensation. If you work only at Christmas, Easter or summer vacations and your tickets are less than your personal compensation, ask your company for the P38 (S) module. Complete the module and return it to your cardholder who can pay you without deductions from the Inland Revenue. This module is valid if you work periodically during the night or the weekend.

What are the reference offices?
If you are a free professional you can go directly to the local Tax Office. If you are a dependent or you receive the pension you must go to the reference Tax Office used by the central offices of your company.

If you are a freelance

Inland Revenue will open an account and periodically send you a status. If the state shows that you are eligible for compensation:

  • the taxes paid for more will be returned to you
  • the taxes will be versed in your account if you do not ask for the refund

What modules do I have to complete if I work as a free professional?

It is important to signal your intention to Inland Revenue and HM Customs and Excise. For the notification to both departments you can use the CWF1 module. In the module they ask you to insert some basic information about your work. You will have to take account of all your entries and all your exits in order to consent to the Inland Revenue to calculate the entity of the tax payable based on your earnings. The entry and exit registration must be kept in case an inspector wants to see them.

What expenses can I “download” by being free professional?

The expenses are subdivided into two categories ‘Capital’ and ‘Revenuè’:

  • Capital Expenditure: are expenses incurred for the purchase or modification of the necessary permits, machinery, vehicles and all the necessary instruments for your activity.
  • Revenue Expenditure: it is impossible to keep a list of all your expenses but you will usually get an idea of ​​how much it will cost you to maintain your activity. They are included: salaries, rent, electricity, heating, gasoline for the media, cost of machinery, etc …

Some examples of mandatorily taxable expenses are: your salary, private insurance, contributions to the National Insurance Number. When there are common expenses for private and work use such as the use of a car or a cell phone, the amount will be subdivided proportionally. For the subject of the car it is useful to indicate the kilometers traveled.

Do you want to start an activity? Look here: Starting Up Business!

What do you have to do if you think you have paid a wrong amount of taxes?
Contact your Tax Office and ask for control over your payments. If you have paid an erroneous amount, the Tax Office will refund the erroneously overpaid tax portion.