November, 2013

Why you might be due a tax rebate in 2014

Have you paid more income tax than you should have? If so, you may be able to claim a tax rebate or tax refund.

Perhaps you have stopped working for part of the tax year? Did you have a second job that wasn’t taxed correctly? Or, maybe you had the wrong tax code? Whatever the reason, you may be able to claim a tax rebate from HMRC.

Here, we look at three common reasons that you may be due a tax rebate in 2014. Keep reading to find out more.

You have paid too much tax through your job

There are lots of reasons that you may have paid too much tax on your employed earnings. These include:

  • If you had more than one job at the same time
  • Your employer was using the wrong tax code
  • You changed jobs during the tax year
  • You are a student who only worked in the holidays
  • Other income that is taxed through your tax code has reduced
  • You didn’t work for part of the year
  • You went from being employed to self-employed

In many of these cases you may have paid too much tax. You can claim a tax refund if you’ve overpaid in the current tax year or any of the previous four tax years.

You stopped working during the tax year

A tax year runs from 6 April to 5 April. If you stop working part way through a tax year, you might have paid too much tax for that year.

If you retired during the tax year, went self-employed, went back to being a student, were made redundant or you were only employed for part of the year then you may well have paid too much tax. This often happens if you were paying tax through Pay as you Earn (PAYE).

Whether you were employed or self-employed before you stopped work, if you’ve paid too much tax you’ll be able to claim a refund of the amount that you’ve overpaid.

You made a mistake on your tax return

If you have made an error on your tax return then you may have ended up paying too much tax. So, the first thing you should do is to correct your tax return.

If you make a mistake on your tax return, you’ve normally got 12 months from 31 January after the end of the tax year to correct or amend it. For example, if you send your 2012/13 online tax return by 31 January 2014, you have until 31 January 2015 to amend it.

If you submitted your tax return online then it is easy to amend it online. You log into your Self Assessment online account, head to the ‘at a glance’ page and choose the option to amend your return.

If you submitted a paper tax return you should write to HMRC and attach the specific pages that you wish to change. Mark these ‘amendment’ at the top of the first page.

If you owe more tax or have to pay a penalty as a result of the mistake, HMRC will tell you how much you need to pay and when and how to pay it. If you’re think you’re due a refund you can tell HMRC how you’d like to receive it.