The P50 form is used to claim a tax refund or an employment repayment when you stop working. You can only access this service if you are working within the UK. Repayment will be made up to the time the form was submitted.
This form should be filled and submitted after your fourth week of unemployment or it can also be submitted multiple times in a year if you are not sure whether you will have taxable income for the current tax year.
Tax Refunds in the UK
Most workers whether employed or self-employed may be due for a tax refund for work-related items, expenses or because they have paid too much tax. It is upon you to follow up with HMRC to see if you are entitled to any tax relief.
It is important to note that you cannot claim a refund unless your paycheck came more than four weeks ago.
When Can You Apply For a Refund?
- Returning to full-time study
- Your unemployment exceeds four weeks
- You do not intend to go back to work.
Types of Incomes That You Can Claim a Tax Refund
- Pension payments
- Redundancy payments
- Interest from a savings account
- UK income if you live abroad
All claims for tax refunds are reviewed on a case-to-case basis.
How to Apply for a P50 Form and Fill It
You can apply electronically. To use this service, you must have a Government Gateway user ID and password. If you do not have a user ID, you can create one when you use the service. You then need to fill the form on-screen, print it, and then post it to HMRC.
It takes 14 days to process your claim and get feedback after submitting your P50 form. In case your claim is successful, a refund is given either by way of a cheque or direct bank deposit. Cheques may take up to five weeks, while direct bank deposits take about five working days.
However, if your claim was unsuccessful, HMRC will give you reasons as to why it did not go through.
How to Fill in a P50 Form
You have to complete the following areas where applicable:
1. Personal Information
You must provide your details. It includes your name, national insurance number, and contact details.
2. Sources of Income
You should state all your income sources, such as employment, pension, and other types of taxable state benefits from previous employment.
3. Signature and Date
At the end of the form, you must put a signature and a date to agree that the information given is true and correct.
Conclusion – P50 Form
It is important to fill in a P50 form when you know that you do not expect to have any taxable income for some time when working in the UK. In other circumstances, you may have been taxed under the wrong tax code or you may have started working under emergency tax rates which are higher.
HMRC will examine each claim and make repayments where necessary. If you are not due for any refund, HMRC will make communication with you stating the reasons.
