UK Tax Refunds and Doing Your UK Tax Return for Youth Mobility Visa - FAQs
I realised I was paying more tax than my colleagues so I assumed I would be due a refund. I sent my documents to Inland Revenue and about three months later, I got back £420
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Should I do a tax return?
Most employees in the UK do not get a tax return to fill in as their employers deduct their income tax through the PAYE system. This system simplifies things if you pay the correct amount of tax. However, if you are entitled to a return, you lose if you do nothing. Understanding the basics of the taxation system or using an online calculator like the one on this page can result in a significant return. The DIY option also exists for getting a refund or using an accountant or tax agent to assist you. Read on to learn more:
Get your UK Tax Refund started online by using 1st Contact. They provide a free no-obligation assessment and if there is no refund, you don’t pay a fee.
Case study 1:
You arrived in the UK in December and secured a one-month contract with an agency in January. You organise your National Insurance (NI) number and then start the contract, getting paid £300 per week, earning a total of £1,200, which is taxed at the normal rate since you have your NI number. You then go travelling for three months over February, March and April returning to the UK to work again in May (which is the new tax year). Since your income is below the threshold of £6475 for the 09/10 tax year, you can claim back all the tax you have paid.
Case study 2:
You arrive in the UK and immediately find a full-time job. Your first pay packet comes before you have had the chance to sort out your National Insurance (NI) number, and you are therefore charged at the "emergency" tax rate. You will be eligible to claim back all the extra amounts you have paid at the end of the tax year on 5 April.
If any of these apply to you, you may be due a tax refund:
If you have earned less than £12,570 in the 2024/25 tax year (Approx £260 per week or £1040 per month) you may be due a tax refund.
Worked for only part of the tax year (Tax year starts 5 April)
Were paying emergency tax and NI contributions at any stage (Example: If you started working before your NI Number was set up, you were likely paying emergency tax)
If you have worked for more than one employer at any one time, you may be entitled to a tax refund.
The tax year begins on 5th April. If you’re not sure if you need to do a self-assessment tax return, the UK Government’s website has a tool that can help you figure it out.
I am self-employed or I have a limited company — do I have to do a tax return?
Yes. If you’re self-employed or working as a contractor, you’ll need to complete a tax return. See information on limited companies. If you are self-employed and not working through a limited company, you should have registered as self-employed with the HMRC and you will have to complete a Self-Assessment tax return. See the HMRC website for more information about registering as self-employed.
How do I know if I am paying emergency tax?
If you have not supplied your employer with your National Insurance (NI) number, you will be paying emergency tax rates. Talk to the HR or Payroll department of the company or agency you are working for, or look at your payslips if you are unsure. If you are paying emergency tax your payslip should display the emergency tax code which is ‘W1’ or ‘M1’ or ‘X’.
You can also do the math yourself. Check out the percentages of tax you should be paying — How much tax do I need to pay in the UK?
I think I have paid too much tax — what should I do?
You need to make sure you have kept all the documents required to show how much tax you have paid. Make sure you keep the following:
- P45 is a form containing details about your pay and tax, given to you if you leave your job during a tax year.
- P60 is a form containing details about your pay and tax that your employer should give you by 31 May after the end of the tax year (if you were in your job on 5 April).
You then need to decide if you want to claim your tax yourself or use a traveller or tax-service company to manage the refund for you. If you choose to do your refund yourself, you need to complete a tax return and submit your original P45/P60 to Inland Revenue.
Claiming for a tax refund can be done through:
Generally, if you do your tax return yourself, it will take two to three months to get your money back but please note that actual processing time may vary.
What are the advantages/disadvantages of using a tax agent?
Many tax agents and travel companies offer tax rebate services, especially for working holidaymakers. There are dozens of companies around, especially in London, so if you decide to use an agent then you should definitely shop around. If you use a tax agent, the process of getting your refund should be simpler for you and you are likely to get your money quicker. Some agencies will charge you a flat fee for their services, some will take a percentage of your rebate and some will have a “No rebate, No fee” policy.
When can I apply for a UK tax refund?
You can apply for a tax refund at the end of the financial year (5 April) or if you are definitely not going to be working in the UK for the rest of the financial year, or you are leaving the UK to return home, then you can apply at any time. If you are leaving the UK, you need to fill in a P85 form.
You can claim back tax refunds as far as six years.
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