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 as a result 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 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
- Employment and Support Allowance
- Carer’s Allowance
- Incapacity Benefit, if you’ve been getting it for more than 28 weeks
You should provide your local Jobcentre Plus parts 2 and 3 of your P45 and if you have overpaid tax this will usually be refunded when you get a new job (either directly by HMRC or by your new employer) or at the end of the tax year.
Planning note
There is a separate process if you are leaving the UK to live abroad permanently or to work abroad for at least 12 months. We can help with the formalities.
