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What is the emergency tax rate in the uk?

If you leave UK part way through a tax year, does HMRC gross up income to determine tax rate?

  • I'm leaving my job and becoming non-resident in the UK part way through a tax year. If I stayed in the same job and was resident for the whole year part of my income would be taxed at the 40% rate. Because I am leaving part way through the year, my total income for the year (while resident in the UK) actually won't exceed the top of the 20% bracket. Will HMRC simply look at my income for the year and determine that the 20% rate applies, or will they pro-rata the brackets against the proportion of the year I was resident, and therefore continue to apply the 40% rate? Thanks very much for any thoughts.

  • Answer:

    Sorry, inaccurate answers so far. You will get the current tax allowance of £6035 for the year, pay 20% after that, and possibly 40% if your earnings are high enough. You will be taxed only on income earned from 6th April (start of the tax year) and when you leave UK. To claim your refund, download form P85 from www.hmrc/p85 when you are leaving UK. Complete, and send to tax office together with form P45 employer will give you when you leave job. Form P50 not appropriate in these circumstances.

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You will be taxed on what you earn in that financial year. If you don't earn enough to leave the 20% bracket you will be taxed at 20%. If you are on P.A.Y.E. it is assumed that the month/week you are being taxed for, is what you will earn each month or week. If you are paying at 40% on some of your salary but cease to earn after a period that does not give you gross income high enough to pay at 40%, you will be entitled to claim a tax rebate.

Tony A

HMRC calculate your tax bracket based on your prorated yearly earnings. Therefore if you leave the country part way through the tax year you will be due quite a large tax refund, if you are paying at the 40% rate. To get the refund either: (1) Send your P45/P60/statement of earnings together with a P91, and P85/P86 to your local tax office, together with a covering letter. (2) Alternatively, use a tax refund service or agency such as http://www.taxfix.co.uk they do charge 9.8% but it might mean you get a larger refund in a shorter time. Good luck

MrFinance

No pro rata applies, so you could well end up with a refund. Use form P50 from http://search2.hmrc.gov.uk/kbroker/hmrc/forms/viewform.jsp?formName=P50

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