20 Oct Tax Refunds
Are you overpaying your taxes?
Love them or mostly hate them, taxes are an integral part of everyone’s life. Thousands of people across the UK are paying more tax than they need to, are you one of them? That’s a serious matter.
With all the expenses that you are facing every day an overpaying taxes is the last things you want.
What is a tax refund?
A tax refund is the money you are owed back from HMRC (Her Majesty’s Revenue and Customs) when you have paid too much tax. Normally, under the Pay As You Earn (PAYE) system, the tax you owe is taken out of your pay automatically by your employer and is calculated based on your salary and other factors.
Unfortunately, sometimes can happen that some of your expenses have not been calculated. There are several ways this can happen. You might have work expenses that HMRC don’t know about, or the cost of certain kind of work travel. There are actually lots of things that count as work expenses, but not many people get the most of them. All these expenses can bring down the amount of tax you owe.
According to HMRC you will be able to get a tax refund if you:
- sent a tax return and paid too much tax
- are employed and had too much tax taken
- have stopped work
- have paid too much tax on pension payments
- have used your own money for your job
- have paid on saving interest if you are on a low income
What information do I need to claim a tax refund?
- Monthly payslips from your employer
- A list of all the workplaces you have travelled to
- Receipts of any work related expenses
- A copy of your ID
- Proof of address
- Mot certificates – If you have been using your own vehicle to travel
What happen next?
If you realise that you have paid too much tax, do not assume that HMRC will find this out
automatically, contact HMRC Self Assessment Helpline on 0300 200 3310 or visit their website:
HMRC will do one of the following:
- contact you for more information
- give you a refund
- tell you that you are not due a refund and why
- If HMRC have corrected the tax code for your current PAYE employment and you are due a refund, your refund will turn up in your weekly or monthly pay.
- If you are no longer with that employer, you will receive a cheque from HMRC.
- If they found you were overcharged tax in a previous tax year, HMRC will mail you a P800 tax calculation.
- If you receive a P800 calculation it is important to check the income and tax figures carefully against any P60, P45 and P11D certificates you have for the year.
Remember, HMRC state that it is your responsibility to spot any errors!
We understand that sometimes the Tax Refund process can be an overwhelming, especially if it’s your first time and you are not familiar with all the accountants specific terms.
In order to help you with this technic issues at In2Accounting we have a team of chartered certified accountants who offers affordable fixed fees accounting packages to meet your needs.
To prevent this happening again, give us a call at 03333444098 for a Free Accounting Consultation, where we can explain you how we can efficiently take care of your future payments for an extremely competitive price. You can also visit our website to find out more: www.4foldaccountants.co.uk