4 Reasons You Could Be Able To Claim A Tax Refund

Have you made a claim for a tax refund?  Or, has HM Revenue and Customs has received new information about your income or your entitlement to tax allowances that suggests you may be entitled to an income tax refund?

Here are four common reasons that you could be eligible for a repayment of tax.

You were only employed for part of the tax year

Often, your tax is worked out assuming that you earn the same amount of money for the entire tax year.  In order that your take home pay remains broadly the same every week or month, the tax free allowances are spread out throughout the entire tax year.

If you therefore only work for part of a tax year, you could find that too much tax was deducted during the time you were working.  This is because your tax code assumed that your allowances were spread equally throughout the year.

Your tax return was wrong

If you have made a mistake on your Self Assessment tax return or think you have paid too much tax, you may be able to claim it back.

If you make a mistake on your tax return you have normally got 12 months from 31 January after the end of the tax year to correct it. For example, for the 2010/11 tax return you have until 31 January 2013 to make an amendment.

If you want to correct a mistake after 12 months you have to write to HMRC and tell them about the mistake instead of amending your tax return.

Your other income changes

If you are employed and you pay your tax through the Pay as you Earn (PAYE) scheme, your tax code is likely to take into account any other income that you receive.  This could include savings interest or income from a rental property.

If this income reduces during the tax year and you don’t let HMRC know, you could well ending up paying too much tax and have to claim a refund at the end of the tax year.

Your tax code is wrong

If your income changes during a tax year, you take on a second job or earn some additional income or the amount of untaxed income you receive changes, you could find yourself on the wrong tax code.

If you don’t let HMRC know about these changes your incorrect tax code may mean that you pay more tax than you should.  You may therefore be eligible for a refund at the end of the tax year.

6 comments

  1. Philip says:

    I am employed full time and pay tax via PAYE. This year I also rented out my house, I incurred repair fees which resulted in me making a loss of several thousand on the rental income, insurance did not cover this, but from a tax perspective am I entitled to a rebate for some of the tax paid via PAYE?

  2. wilson says:

    hai sir;
    one of my friend left in uk and lives in australia.Is it possible to claim back NATIONAL INSURANCE and tax that deducted on my wage
    thanks
    wilson

  3. Jackie says:

    I do no paid work but I have 4 properties that I rent. I took £85k from equity in my home and used it to pay for deposits etc. I have them on interest only buy to let mortgages and I realise approx. £650 above the cost of mortgages each month, although £400 of this is used towards the additional borrowing on my residential property mortgage (again interest only part). Am I required to complete a tax return and would I be liable to pay tax? Thanks

  4. viraj katwala says:

    sir,
    i would like to know i am as student dependent full time work in chemist from feb-2009. i leave this country permanant basis never come back in november-2011. shell i get back my this empolyment period income tax refund or how much and how long process.
    Thanks.

  5. Tax Fix says:

    Jeremy – Yes, you can amend your tax return. If you filed your return online you can make an amendment using the online service. If you filed a paper return you should write to HMRC with details of the amendment.

    If the return was for the tax year 2010/11 (that ended on 5 April 2011) you have until 31 January 2013 to submit the amendment.

  6. Jeremy Cliff says:

    If I missed something off the tax return I have recently submitted, is there anything I can do?

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