On a Working Holiday Visa? Find Out How to Claim Tax Back
A working holiday visa lets you travel and earn at the same time, which is why thousands of people come to the UK or other countries that offer such an opportunity. Most of them, however, go back to their home country without knowing that they might be eligible for a tax refund.
Whether you worked in the UK, Australia or other countries, you should check for possible tax rebates on your working holiday visa. Afterwards, take the steps to make a claim.
1. Decide between DIY or PRO
Ideally, you should use a tax agency to help you claim a refund. This is especially true if you are unfamiliar with the tax rules or how to calculate the tax back amount. With their expertise and knowledge, you only need to provide the essential documents and let them take care of the rest.
Tax back agencies that are available online also offer convenience in claiming a tax refund. You can apply for a self-assessment tax return online and get a response without leaving the comforts of your home.
Of course, if you are put off by the professional fees, which are usually not that high, you can always claim the tax refund yourself. If you do decide to do this, make sure you go through every step meticulously, so you can get the compensation that you deserve.
2. Know how much you can claim
The amount of tax refund will depend on how much tax you have paid within the tax year. If you used your working holiday visa a month before the end of the tax year, you are likely to claim back all the tax that you paid. The same thing is true if what you earned was below the personal allowance, which is set for the tax year 2014/15 at £10,000. If you earned higher, you can still get a refund. Find out how much of a tax refund you are eligible for here .
3. Prepare the necessary documents
To claim a tax rebate, you will need either of the two forms: P60 and P45. The former is a tax document that will be issued by your employer at the end of the tax year that contains your national insurance number, income for the tax year, amount of tax you paid and other information.
The P45, on the other hand, is given you to after you have stopped working from a particular employer. Since you use a working holiday visa, this is likely what you will get. This would usually show your PAYE reference number, tax code, national insurance number, income for the tax year, amount of tax paid, and the date you finished working.
If you opt for a DIY tax back claim, you will need more than just the P60 and P45. You might also need a P85 (leaving the UK) or P86 (entering the UK), if and when it is applicable, P91 (employment history form) and a cover letter addressed to HMRC.
In the event that you lost your P45/P60, you can just request a copy from your employer. Afterwards, email all your documents to HMRC and wait for your money to be credited to your bank account.
It usually takes 40 to 45 days to claim your tax refund. If there are problems with your documents, it could take longer.
Follow these steps when claiming tax back. But spare yourself the hassle by just hiring a tax agency to help you through the entire process.