Have you paid too much tax? If so, you may be eligible to claim a tax rebate (or ‘tax refund’) which may be worth hundreds or even thousands of pounds.
However, millions of pounds of tax rebates go unclaimed each year for a range of reasons. We’ve put together a guide to five of the most common reasons why people are missing out on reclaiming thousands of pounds of their own cash. Keep reading to make sure you avoid these mistakes.
It is too much hassle
Most people assume that claiming back tax will be a lot of hassle. However, the process is actually more straightforward than you may think. If you think you have paid too much tax you simply have to telephone HMRC or send them a letter explaining why you think you have overpaid.
If you don’t want to deal with HMRC yourself, there are a range of expert ‘tax rebate’ services who will process your claim on your behalf. Sites such as Tax Fix can help you to reclaim your overpaid tax and take the hassle out of your claim.
It is too late
Don’t assume that it is too late to make your tax rebate claim. You normally have up to four years to make a claim for overpaid tax.
If you’re a self assessment taxpayer you have until 5 April 2014 to make a claim for tax you overpaid in the tax year 2009/10. You can claim overpaid tax from the 2010/11 tax year until 5 April 2015.
If you’re a PAYE taxpayer the deadline to make your tax rebate claim for the 2009/10 tax year is 5 April 2014. If you want to claim for the 2010/11 tax year you have until 5 April 2015.
Tax rebates are just for foreigners
Many UK residents are under the mistaken impression that tax rebates are only for foreigners who work in the UK for a short time.
In reality, anyone who has worked in the UK could be due a tax rebate. There are lots of reasons that you may have paid too much tax, and we’ll outline some of these next.
I don’t think I am eligible
Don’t assume that you have paid the right amount of tax or that you aren’t eligible for a tax rebate. There are lots of reasons why you may have paid too much tax. These include:
- You had more than one job
- You were on an emergency tax code for part of the tax year
- You only worked for part of the tax year
- Your employer used the wrong tax code
- You are a student and didn’t complete the P38S form
- Other income taxed through your tax code has reduced since you told HMRC about it
I don’t have the right forms
Many people try to apply for a rebate and give up when they find that they don’t have a P60 or P45.
However, it is possible to obtain duplicates of these forms and other information you need to make your claim. Again, a tax rebate claims service can give you advice and help you in this regard.