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A colleague has been on a 3 year secondment in the UK, which

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A colleague has been on a 3 year secondment in the UK, which finishes on 15th April. He will be paid by the company until then and issued with a p45. He is immediately returning to India to take up a new employment with a different company. For tax year 2015-16, will he receive a full year SPA in the UK?

Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
On departure he should complete a from P85 and send it to HMRC who will class him as non resident from the next tax year. They will also split the year of departure into two parts, one resident and one non resident.
As regards ***** ***** Allowance here is the guidance from Gov UK web site:
'You’ll get a Personal Allowance of tax-free UK income each year if either:
You’re a citizen of a European Economic Area (EEA) country - including British passport-holders
You’ve worked for the UK government at any time during that tax year
You might also get it if it’s included in the double-taxation agreement between the UK and the country you live in.'
There is a Double Taxation Convention between the UK and India and this covers Income Tax. The aim of the Convention is to ensure that a person is not taxed in both jurisdictions on the same income stream. He should therefore be entitled to a full personal allowance, although if he is leaving (or left) on 15 April at would appear that it is unlikely that there would be much income to tax.
I do hope I have helped shed some light on your question.
Customer: replied 2 years ago.

Actually he has quite a large bonus payment due. Would he automatically be refunded the April 15 PAYE or would he need to do a tax return for 15-16?

Expert:  bigduckontax replied 2 years ago.
I suspect that there might be a hidden payment! PAYE will get it all wrong and assume that he will get this large sum for every month of the 15/16 tax year; that's how the tax tables work. Don't worry though, the P85 procedure allows for a refund of overpaid tax on departure so he will not have to wait until April 16 for his adjustment.
Customer: replied 2 years ago.
OK, thanks
Customer: replied 2 years ago.
I don't suppose you would know when a refund would be likely?
Expert:  bigduckontax replied 2 years ago.

Here is a nugget from the Low Income Tax Reforms Group Notes to students:

'But you should be entitled to a full year’s personal allowance.' The reason is because the tax tables will only allocate 1/12 of a personal allowance in April.

Here is the Gov UK information on refunds:

'HM Revenue and Customs (HMRC) will usually send repayments within 5 weeks, but it may take longer in some cases.

You should wait 5 weeks after making an online claim and 6 weeks after making a postal claim before contacting HMRC about the payment.'

P85 forms may be filed on line.

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bigduckontax, Accountant
Category: Tax
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Expert:  bigduckontax replied 2 years ago.
Thank you for your support.

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