The Tax Preparation Blog

Posts Tagged ‘hmrc’

Question: A question on income tax bands?

I live in England and i’m trying to calculate my income tax liability. This website shows the band rates: http://www.hmrc.gov.uk/rates/it.htm

However, I am unsure about a few things. According to the website, the personal allowance is £5,225. I assume this is the amount that can be earned tax-free.

However, it then says that the “Starting rate” of tax is 10%, and that this is applicable to amounts between £0 and £2,150. But how can this be, if your first £5,225 is tax free?

Answer: The 10% applies to the first £2,150 of “non-exempt” earnings…

… ie the earnings between £5,225 and £7,375.

If you only earn £5,220 a year, you pay no income tax.

If you earn £6,225 a year, you pay £100 income tax… because £5.225 is exempt, leaving £1,000 taxable… and 10% of £1,000 is £100.

Q&A: How to survive in frozen UK

As temperatures plummet and people across the UK battle treacherous conditions, what can you do to keep you and your home warm, and stay safe on the roads?

What is IR35? Media presentation brought to you by Tarpon Ltd

Question: Tax/NI refunds on leaving UK?

I am a South African who has been in the U.K for almost 3 years now. I will plan to leave the U.K in a year’s time to return back to South Africa.

When i depart the U.K do i have the option to claim most of my Tax or N.I contributions back?

I have heard that you can claim your N.I back however this money needs to go towards a mortgage. So i am extremely confused and ideally would like to find out any further information regarding claiming back most of my tax and n.i contributions to date.

Does any one know if its possible for me to claim most of these back as I will no longer be a U.K resident.

Thanks for the help.

D*

Answer: You can’t claim any NIC back at all. Or the tax for any full years you were here. I am assuming you did form P86 when you came to UK to establish residency, but as you are from the Commonwealth, you should be able to get British tax allowances.
It is likely the only refund you can get is on tax for the current year in which you leave the UK, unless employer deducted too much for any reason. Tax-free limit is £6035 this year, likely to be £6475 next year by today’s pre-budget statement, previous answer out of date. You will not have used full tax allowance when you leave, so you will need to complete form P85, and send to tax office with form P45 that employer will give you when you leave job. Repayment has to be in Sterling.

United Airlines Kicks Off 2010 with Worldwide Fare Sale

CHICAGO—-United is ringing in the New Year with sale fares to international and domestic destinations.

UK – Irish – Spanish – French Property Tax Returns