I am currently working in UK with a Work Permit from last three months
and would like to go back to India. I would like to know will I be
able reclaim the income tax/national insurance that I have paid till
now as I had just worked only for three months in UK.
You will probably get much more informed replies on this in an Indian
ex-patriots' forum, than here (I only know of Chinese ones). However,
as no-one else has tried yet, I will speculate a bit.
The full answer is likely to depend on your tax position in India and
how long you have been resident in the UK. Although I don't know the
specifics for the UK and India, governments generally try to arrange
that you don't pay extra tax because you are being taxed in two places,
but also that you don't pay less.
If you have no taxable income for the year as far as the Indian
authorities are concerned, you should be able to reclaim any UK tax if
your total income from employment and savings, in the UK, is less than
the annual exempt amount. There may be provisions for doing this before
the end of the tax year, but I don't specifically know about them.
If you are on an HSMP visa, I would have thought it quite likely that
three months salary would have taken you over the exempt limit, anyway.
Again, if you started halfway through the tax year and provided the
right documentation to your employer, so that you are on a normal,
cumulative, tax code, one wouldn't have expected you to have paid any
tax for the first one or two months. (There may be special rules if you
weren't resident in the UK from the start of the tax year.)
If you are likely to be taxed in India, you will need to know how the
Indian government will treat your UK earnings and tax paid on it; it
might be the case that it is better to accept the UK taxation. You can
probably still reclaim the UK tax.
In any case, you should look at
<http://www.hmrc.gov.uk/cnr/p85_p85s.htm . Although form P85(S) is
probably the one for you, P85 contains an address for National Insurance
National Insurance may be more complicated. I think there are
facilities for converting small payments into cash, but it is notionally
insurance, so you may already have taken some of the benefits even
though you didn't use any of the services it pays for (I think there may
be a minimum contribution period, in some cases, so maybe contributions
for less than that period are refundable). What might happen is that
repay you for the pension component, on the basis of the value of the
pension rights acquired. However, that is nearly all speculation; you
really need to use a forum that specialises in Indian nationals
temporarily working in the UK.
However <http://www.hmrc.gov.uk/cnr/faqs_general.htm seems to suggest
that you probably can't get an NI refund.
wrote: > National Insurance may be more complicated. I think there are facilities
The national insurance is lost.
It is payable weekly by anyone earning above the minimum contribution level
for that week, who doesn't have a 'foreign' exception certificate. It is
not refundable just because you know that you can't make a future claim.
The only instance that NI is reclaimable is if you have two (or more) jobs
and the cumulative annual total paid is more than the annual maximum
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