If someone from abroad is working in this country (legally) for just a few weeks before having to return home what is the position with regard to tax/NI refunds come next April given that they will earn under 4k in this time. Will the tax/NI paid under the temporary NI number be reclaimable?
Thanks in advance John
The income tax will be repayable upon their submitting a self-assessment return next April. Obviously, both the Employment and Foreign supplementary pages will have to be completed as a minimum. Keep a note of the employer's reference, tax district and the temporary national insurance number. Retain the P45 which will be issued on leaving employment.
It is unlikely the National Insurance contributions will be repaid but, depending on your place of permanent residence and the availability of a social security treaty with your home country, they may available for credit their.
John Pointon Accountant, Tax Consultant "In business to grow your business"
I should have added above that the repayment of tax is only likely to be made if the employee concerned is a citizen of the Republic of Ireland, a commonwealth citizen or a national of a state within the European Economic Area (broadly the European Union and plus Iceland, Norway and Lichtenstein. The availability of repayments to other nationalities will depend on the terms of any double taxation agreement with their home country and the United Kingdom.
John Pointon Accountant, Tax Consultant "In business to grow your business"
The person is from Romania (outside the EEA) but had leave to remain in the UK by marriage. Do you think this would prohibit them from any tax refund ?
John
reclaimable?
The point is that apart from those groups to which I referred in my earlier post, personal allowances are only available to individuals who are resident in the United Kingdom for tax purposes. To be resident here you have to be physically present in the United Kingdom for 183 days or more in any given tax year.Alternatively, if the visitor makes regular trips here involving physical presence in the United Kingdom for an average of 91 days per annum over a 4 year period, he will also be regarded as resident here.
Without residence status, no personal allowance will be available from which to generate a repayment. If possible, your friend/employee should consider extending his stay so that he has spent more than 183 days here since 6 April 2003. Obviously, the costs of so doing must be weighed against the value of any repayment which may be forthcoming.
There is a double taxation agreement between the United Kingdom and Romania but it dates from 1977 and has never been updated. Unfortunately, I do not currently have access to a copy but, from memory, I believe it confines itself to profits from industrial and commercial activities, shipping and airlines. No doubt, if I am mistaken, another group member will correct me.
John Pointon Accountant, Tax Consultant "In business to grow your business"
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