Find out more about Tax Refunds
Frequently asked questions about claiming your tax refund
1. What is a tax rebate?
A tax rebate, otherwise referred to as a tax refund, is paid to you by HM Revenue & Customs (HMRC) when you have overpaid on your taxes. This amount is calculated when you complete an online or paper tax return.
To get a tax refund, you must tell HMRC about your income and capital gains, as well as specify any tax allowances or reliefs that are due to you.
2. How to claim tax back?
Anyone who has lived and worked in the UK may be eligible to make a tax-back claim.
A tax refund is a repayment of PAYE (Pay As You Earn) tax that you have overpaid during the tax year, according to HMRC guidelines. PAYE is the system HMRC uses to collect Income Tax and National Insurance contributions (NICs) from employees. Tax and NICs are deducted throughout the tax year based on the employees' earnings.
A tax rebate can be claimed after each tax year. The tax year starts on 6 April and ends on 5 April the following year. You may claim a tax rebate for up to five years if you have not claimed before.
3. Tax return deadlines
- If you send in a paper tax return, it needs to be submitted to HMRC by midnight on 31 October.
- If you complete an online tax return, it must be submitted to HMRC by midnight on 31 January.
You'll be charged a penalty if your tax return is not received before the deadline.
Let us deal with the hassle of completing your tax return so you don’t have to. All you need to send us are your invoices and any receipts for expenses you want to claim that are job-related.
4. Have I paid too much tax?
You may have paid too much tax in a tax year if:
Tax in the UK gets calculated with the assumption that you're going to be employed for the total duration of a tax year. The more you earn, the more tax you pay. If you did not work for a complete tax year, you probably paid too much tax.
- Leaving the UK (or you've already left the UK)
- Not planning to return to work in the UK before the end of the tax year
You can also claim a tax rebate for ANY tax year going back up to four years if you’re leaving the UK, or you’ve already left your last job in the UK (just make sure you get your P60 before you go).
5. Who needs to complete a Self Assessment tax return?
Not everyone needs to complete a tax return. If your tax affairs are straightforward, you may already pay all of the tax due on your earnings or pensions through your PAYE (Pay As You Earn) tax code.
Dealing with your Self Assessment tax claim can be an extremely stressful experience. If you don’t take all of the necessary factors into consideration, you could make an expensive mistake.
The following is a list of some of the individuals who are required to complete a Self Assessment:
- Self-employed individuals
- Company directors
- Those who earn £100,000, or more, in a year
- Individuals who receive taxable income from abroad while living in the UK
- Trustees of registered pension schemes or trusts
- Those who received £2,500 or more in untaxed income; including renting out a property or earning interest on investments or savings
When filling in your return you will be asked for details about profits from your business (if relevant) and any other income on which you must pay tax. You can increase your tax rebate by claiming for expenses such as tools, clothing, meals and travel.
For more details on Self Assessment give us a call on +44 808 141 5503.