This section applies if you come from abroad due to being seconded to work in the UK, as you may be due a large tax refund.
This is the case of many IT managers or technicians, although this could also apply to a wide range of professions.
If you are seconded to work in the UK subsidiary of your parent company located outside the UK, you would normally be paid in GBP whilst in the UK and pay income tax under PAYE (Pay As You Earn scheme), like any other UK employee. The chances are you could be owed hundreds of pounds in overpaid income tax once your secondment is over and you return to your home country.
Why people finishing work secondments can get a tax rebate
– Because you would have left during a tax year (a tax year runs from April 6th until April 5th of the following year), you wouldn’t have received the full personal allowance every UK worker is entitled to (the ‘personal allowance’ is the tax free amount that every UK worker is entitled to during a tax year). We can ask for this amount to be repaid to you.
For a FREE assessment please fill in our online application
– Many expenses you may have incurred during your stay in the UK may also be tax-deductible i.e. Travel expenses to and from work; Rent; Council Tax; etc… These expenses could therefore be offset against your profit, which means that you could lower your tax liability and maximise any tax refund due to you.
Who can qualify for a UK secondment tax rebate?
You may qualify for a tax rebate following a period of secondment in the UK if all these criteria apply to your case:
– You were seconded to work in the UK subsidiary branch of your employer’s company and you normally reside outside of the UK
– The duration of your secondment in the UK was under 24 months (although there might be exceptions to the 24 months maximum duration, depending on your exact circumstances)
– whilst on secondment in the UK, you were paid in GBP under PAYE
– You received a P60 from your UK employer once your secondment was over
– Your secondment in the UK finished after 5th April 2009
If this sounds like your situation, get in touch.
Example 1 – Samir is an IT technician working for an Indian company. His employer requires that he gets specific training in the UK branch of the company. His training in the UK lasts 6 months, from July 2012 until October 2013, during which time he is paid in GBP under PAYE and income tax is deducted at source from his wages. He then returns to India to carry on with his employment as normal. Samir can claim back any overpaid tax over 2 tax years, 2012-2013 & 2013-2014.
Example 2 – Dieter works for a private bank in Germany. He is asked to go to the UK branch to oversee a project. He is seconded in the UK for a period of 18 months, during which time he receives his income in GBP and income tax is deducted from his wages under PAYE. He starts his secondment in the UK in January 2011 and finishes in June 2012. He then returns to Germany to carry on working for his German employer. Dieter can also claim back any overpaid tax for every tax year that he was seconded in the UK: 2011-2012 and 2012-13.
Example 3 – Malcolm is an Australian engineer who is asked by his Australian employer to work as part of a team looking after a project in the UK subsidiary of the company, which from the start he knows will take 2 and half years to complete. After 2 and half years, Malcolm returns to Australia. Because his secondment was over 24 months, he cannot claim back an income tax refund for his secondment over 3 tax years. However, Malcolm can still claim back any overpaid tax for the last tax year he worked in the UK.
How to apply for a tax refund due to Secondment
Complete our online application including the exact start and finish dates of your secondment in the UK. Please don’t forget to mention your country of residence, as well as your nationality, as this information will have a bearing on your case.
According HMRC’s rules, we will normally use Self Assessment for each tax year covered by your period of secondment. For example, if your secondment in the UK started in November 2012 and ended in June 2013, your secondment period would cover 2 tax years (2012-2013 and 2013-2014). This means you would be able to claim back any overpaid tax over two tax years, not one. However, in some rare cases, we may have to submit your claim via PAYE.
We’ll charge 20% of the tax refund value, subject to a minimum fee of £99, per tax year (we will charge one set of fees only, whichever is the higher).