Frequently Asked Questions About Tax Rebates

Are you concerned that you have paid too much tax to HM Revenue and Customs in the past six years? Worried that a change in your circumstances hasn’t been accurately reflected through the tax rates you are on?

Tax RebateIf so, consumers now have the ability to calculate the tax they should be paying, and to contrast this amount with what they have actually contributed.

If this turns out to be considerably more than it should be, steps can be taken to ensure you get taxback in a timely manner. In this article, we are going to explore some frequently asked questions about what a tax rebate is, allowing you to become better informed.

Q: What types of people commonly apply for a tax rebate?

Anyone who has worked in the UK but then leaves the country before the end of the tax year to return home or spend an extended period of time abroad should consider applying for a tax rebate. The tax year runs from April 6th until the following April 5th.

Other factors include people who have changed jobs before the end of the tax year or who have been wrongly placed on an emergency tax rate, meaning that they were making contributions when they were underneath the personal allowance threshold of £6,435.

Q: I think I have been paying the incorrect amount of tax for a considerable amount of time. How far back can I claim?

You are able to make applications for tax back for the past six years. For many people, this is why applying now for advice is important, as there is a time limit on your ability to claim.

Q: I am ready to begin the process of applying for a tax refund. What are the records I require for my application to be successful?

Ideally, you will require a P45 form in order to apply for a tax refund successfully, and this is a record of an employee leaving work. It is suggested that you keep part 1A for your reference, while sending the other two parts to HM Revenue and Customs.

Additional forms you may require include a P60 if your employment lasted until the end of the financial year. If you have a savings account where the interest is taxable, you will also need to ensure that this is declared, as it counts towards your earnings. To conclude, some employers do provide you with benefits such as a company car or health insurance, and in these cases, a P11D form is also expected to ensure that HM Revenue and Customs have all of the information they require to do a recalculation.

Q: My application has been successful. When can I expect to have my tax return sent to me?

If you are leaving the UK or going abroad and will not be working for the rest of the, it should take 8 weeks for refund to be processed.

Alternatively, if you have found work four weeks after concluding work with your previous employer, the necessary refunds will be given to you along with your pay by your new employer when you present a P45.

If you are receiving Jobseeker’s Allowance or another form of taxable benefit, you will have to wait until the end of the next financial year until you can receive your refund.

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