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.