Just wanted to repost this question as I'm sure someone would know the answer! (or point me in the right direction)

If I leave the country (not to return for the rest of the financial year) and file a P85 form to reclaim income tax, do I get rebated on everything I've paid so far this year or a pro rata return on the difference between what I have paid and my annual tax free allowance?

Any advice appreciated....

As with so many tax questions the answer is ... it all depends!

Under the PAYE system you are allocated your personal allowance on a month by month basis (if you are paid monthly). So by the end of month 5 you will have been allocated 5/12 of your annual PA's. If you then leave the UK you are entitled to the balance of your allowances for the tax year of departure - or 7/12 of your annual PA using the same example.

Also, the lower and basic rate tax bands are allocated on a month by month basis under the PAYE system, and because you are entitled to the value of whole year's tax bandings these too can contribute towards a tax repayment if you leave employment (and the UK) part way through a tax year.

If your gross income up to the month of your depature is less than the PA for the whole year, you should then expect to be repaid the whole of any PAYE Income Tax deducted on salary paid to the time of your leaving the employer.

If your gross income exceeds the annual PA then you can expect to be repaid a proportion of the PAYE already suffered.

Complications can arise if (for example) you are renting out a property in the UK for a rental profit in the tax year of departure, but this starts to become too involved for a public forum ...

Hope this helps.

Alan Collett
alan-at-gomatilda-dot-com
Registered Migration Agent Number 0102534
and a Fellow of the Institute of Chartered Accountants in England and Wales
http://www.gomatilda.com and
http://www.collettandco.co.uk
Offices in Southampton, England; Perth, Australia; and Melbourne, Australia

Alan,
Thanks, that does indeed cover my question.