Employment and Payroll
< 1 min read

Claiming income tax refund if you have stopped work

Yinchao Zou

Claiming income tax refund if you have stopped work

HMRC issues some helpful guidance that covers what you need to do if you stopped work. The guidance covers the main reasons that you might have stopped work such as being made redundant or leaving your job.

If you have been made redundant then you may have overpaid tax because of your redundancy payment. HMRC may in some cases refund you any overpaid tax before the end of the appropriate tax year. A claim can be made using form P50 – Claim for repayment of tax when you have stopped working if you are not claiming benefits and not going to work for at least 4 weeks.

However, you can’t get a tax refund straight away if you’re getting any of the following:

  • Jobseeker’s Allowance (unless you’re claiming for National Insurance credits only)
  • Taxable Incapacity Benefit
  • Employment and Support Allowance
  • Carer’s Allowance
  • Receiving or will receive other taxable income such as a works pension from your old employer before the end of the tax year.

There is a separate process (using form p85) if you are leaving the UK to live abroad permanently or to work abroad for at least one complete tax year.

If you have had your final pay from your employer and are not getting taxable benefits, a pension from your employer and have not started a new job you can apply for tax refund. Check if you are eligible here

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