1. Osome Blog UK
  2. Form P50: Get Your Money Back Before the End of the Tax Year

Author Osome Content TeamOsome Content Team

4 min read
Running My Business

Form P50: Get Your Money Back Before the End of the Tax Year

Form P50: Get Your Money Back Before the End of the Tax Year

If you overpay your taxes, at the end of the fiscal year you receive P800 form from HMRC stating how much money you can get back. But if you don’t get any taxable income for 4 weeks, you can contact HMRC and claim your refund straight away. That is what P50 is for.

Keep in mind that this form is about your relationship with HMRC, not your employer's. So their accounting services provider in charge of payroll is not involved with filing this form, the onus in on you.

What is a P50 form?

P50 is an option to claim your overpaid tax during the fiscal year. To do that, you have to meet certain requirements as well as apply at the right time. The document itself looks like this:

p50 form uk example

When sending P50, you can state yourself for how long you do not plan to earn any taxable income. The term is limited by the duration of the current tax year, which is April 6th to April 5th of the next calendar year.

Great! When do I use it?

When you do not receive any taxable income for more than 4 weeks and you have overpaid your taxes. For example, you are in between jobs for more than a month. Or you retired before your pension plan kicked in and you still have a couple of months before you get paid. Or you are a student studying full-time and working in between semesters. In this case, the taxes were probably counted under emergency rates in which case you have overpaid.  

Usually, HMRC applies one of its emergency tax codes for short-term employment. After HMRC gets more data about your income from your employer, your tax code will change. The emergency tax rates are normally higher, which means you are likely to overpay when taxed at those, so you can claim a refund.

Mind that taxable state benefits make you ineligible for a P50 tax refund, so make sure you are not receiving any of them. Here is the benefits list:

  • Jobseeker’s allowance;
  • Taxable incapacity benefit;
  • Employment and support allowance;
  • Carer’s allowance.

If you are on any of those benefits, the offices responsible for providing them will handle any possible tax refund issues for you based on parts 2 and 3 of your P45 form that you got from your employer when you quit. The same goes for switching jobs. In that case, it will be your new employer who will take care of it.

How do I apply?

You can apply online or find all the needed forms on the official P50 form webpage. Keep in mind that you will also need parts 2 and 3 of your P45 which you should have gotten from your employer when quitting.

If you are not sure whether you will have any taxable income later in the current tax year, do not worry. You can file a P50 tax form multiple times in a single year.

After you have sent all the needed documents HMRC will process your application. If you expect your refund to come in the form of a cheque it, may take them up to 5 weeks. Refunds going to bank accounts are usually processed in 5 working days. If after 6 weeks nothing still happens — contact HMRC. The easiest way might be to call their international line in the morning. This way the odds are that you won’t have to listen to stock synth music for long.

Tip

You can not claim your tax refund unless your last paycheck came more than 4 weeks ago. This is important because you might stop working before getting your last payslip, for example.

I’m Not Sure If HMRC Owes Me Any Money

Well, it’s still better to send in your P50 than to wait till the end of the year when you get your P800, especially if you do not plan to have any other taxable income for some time. Even if you do find a new job or apply for benefits, the refund amount will be adjusted based on your P45.  

Simply the fact that you have stopped working in the scope of one year changes your tax rates.

It very well might be the case that you started working under emergency tax rates which are higher. It is common practice for probation periods. And sometimes you might be taxed under a wrong tax code. Every case is reviewed individually by HMRC and if you are actually not due any refund, HMRC will contact you and tell you so stating the reasons.

Make sure you have a UK-based bank account. If you relocated outside the UK, you will have to fill in a P85 form to get a tax refund for the amount you paid while being in the UK.

What if I Can't Use a P50 form?

There are some reasons when you can't use a P50 claim tax refunds. In case your pension lump sum is small you'll have to file a P53 instead. Either apply directly to HMRC after April 5th or to your pension provider to get the payment.

Want to register your UK company online? Get in touch with us and we will assist you.

Subscribe

Tips to run your business smarter. Delivered to you monthly.

By clicking, you agree to our Terms & Conditions , Privacy and Data Protection Policy

You might like it

How To Know a Side Hustle Can Be Turned Into A Full-Time Enterprise
Incorporation

How To Know a Side Hustle Can Be Turned Into A Full-Time Enterprise

Side hustles are increasingly popular nowadays, largely thanks to the rise of the internet, e-commerce, and social media. But how do you know when you can turn your side hustle into a full-time enterprise? What are the signs that your side hustle is ready to take the next step? Find out here.

·5 min read
How To Attract More Customers to My Website
Running My Business

How To Attract More Customers to My Website

The emergence of digital technologies has resulted in a crowded market and intense competition, where many e-commerce business owners struggle to attract customers to their stores. The good news is, there are tried and tested marketing strategies that can give you a leg up in the competition.

·6 min read
10 Businesses Started by Female Entrepreneurs
Running My Business

10 Businesses Started by Female Entrepreneurs

We want to take the opportunity to put the spotlight on successful businesses started by women.

·4 min read
How Small Businesses Can Protect the Environment in Daily Operations
Running My Business

How Small Businesses Can Protect the Environment in Daily Operations

Companies can do a lot to become an environmentally friendly business. Here are five simple steps to help your business become a green business.

·3 min read
10 Tips To Save Time as a Founder
Running My Business

10 Tips To Save Time as a Founder

On certain days, it just feels like there are not enough hours in the day. Months fly by and you wonder where the time went. As a founder of a company, you’ll need to handle tasks such as problem-solving, decision-making and even staffing matters. These could take up a lot of your time.

·6 min read
Do You Need an MBA To Create a Successful Business?
Running My Business

Do You Need an MBA To Create a Successful Business?

Thinking of pursuing an entrepreneurial journey? An MBA provides you with an edge over your competition -- but is it absolutely necessary to hold one in order to create a successful business? Read on to find out more.

·6 min read
Stress Management Tips For New Entrepreneurs
Running My Business

Stress Management Tips For New Entrepreneurs

With the pandemic affecting most companies’ operations, business owners are now finding it tougher than ever to keep their business afloat. As a new entrepreneur starting your business during these times of crisis, stress is unavoidable. Find out how to manage your stress levels with these 10 tips.

·6 min read
Business Management Costs: How To Save on Electricity or Gas Bills in the UK
Running My Business

Business Management Costs: How To Save on Electricity or Gas Bills in the UK

Electricity and gas are some of UK business’s largest expenses. And with prices at high levels, they’re only getting more and more expensive.This article explores 5 simple ways in which you can reduce the cost of your electricity and gas, helping you keep more of your cash.

·4 min read
What UK SMBs Need To Know About the Rise in Energy Bills
Running My Business

What UK SMBs Need To Know About the Rise in Energy Bills

Businesses of all shapes and sizes must also prepare for increased energy costs, with the rise particularly concerning for SMBs. Let’s examine how the price increase will affect SMBs, dig into the slither of good news (well, the not-so-bad news!), and outline how the government is planning to help.

·5 min read
How Can Working With An Accountant Help Your Startup Grow?
Accounting

How Can Working With An Accountant Help Your Startup Grow?

As a small business owner, you have probably experienced having to wear multiple hats, undertaking everything from marketing to accounting. Running a business involves many different interconnected variables, with accounting being one of the essential tasks.

·6 min read
Things To Know Before Renting Office Space in the UK
Running My Business

Things To Know Before Renting Office Space in the UK

As a business owner, having your own space to run your business can be an exciting thought. However, renting your own office space is a huge decision, and one that requires much consideration and planning before implementation.

·6 min read
Digital Payment Trends To Take Note Of
E-commerce

Digital Payment Trends To Take Note Of

Digitising payment methods will help you take payments quickly. Many entrepreneurs are now running an online business and it’s not possible to make offline payments or cash on delivery every time. At the same time, you have to stay on top of current trends and meet your customer’s needs.

·5 min read

Tips to run your business smarter. Delivered to you monthly.

We’re using cookies! What does it mean?