Tax Rebates & Refunds

Have you overpaid on your income tax?

June 29, 2010
Posted in Income Tax, Tax Rebates — Written by Geoffrey

If you pay regular tax to government agencies then you must be aware about tax refunds or tax rebates. A tax refund is a payment made by the government to an individual who has overpaid during a tax year. This is possible when you have been taxed on an emergency tax code or if you have not been working for a period of time.

To claim a tax refund, you have to wait for the tax year to end (5th of April). If you are leaving the country before the tax year ends then you can claim for a tax refund during the current year. You can check the amount of your tax refund with the help of a tax refund calculator.

According to the tax refund scheme in the UK, any individual can claim a tax refund for the last six years. This is only valid when he/she thinks that the refund is due. If you have decided to claim for tax refunds then you have to be ready with following original documents:

P45 – This document is given to you at the end of each employment or job. The P45 includes all income and tax-related information about your previous job.

P60 – You will be given this document at the end of each tax year from your employer. It contains salary related details.

If you have lost the above mentioned documents (P45 and P60) then you have to get the statement of earnings from your employer. If you find it difficult to complete the procedure for the tax refund then it is recommended to hire a tax expert.

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