The refund of taxes when your tax liability is lower than the taxes paid is known as tax rebate. Taxpayers can benefit from a tax rebate on their income tax if the sum of the overall amount of tax they owe is below the approximate and withholding taxes they pay. So, if you think you have paid too much of tax, you can claim for tax rebate.
Step by step guide to claiming a tax rebate
Get all your tax documents together:
Every year, your employer should give you a P60. On the other hand, if you leave your job, you will get a P45. With the help of these documents, you can determine whether you are eligible to get tax rebate. However, if your employer has not given you a copy of a P45/P60 or if you have lost it, the only way to get duplicate copy is to ask for a ‘Statement of Earnings’ on a company letter head.
Determine whether you are due a tax refund:
Once you have all your tax documents, you can easily check the amount of refund you can receive. Using a P45 and P60, you can work out the gross amount you have earned and the tax you have paid. You can input these figures in the tax rebate calculator and see how much tax refund you are entitled to get.
The third step is to prepare your claim. Once you know how much tax rebate you are entitled to get, you can then collect all the relevant information and submit your claim.
