Tax Rebates & Refunds

A brief insight into the tax refund process

October 24, 2010
Posted in Tax Rebates — Written by Jennifer

Tax refunds are the excess money that the taxpayer can receive. If you reside in the UK, then you have to pay income tax if it is above the tax-free allowance. However, you can be entitled for tax refunds in various different circumstances.

Tax refunds

When your tax liability is lower than the tax you have paid to the government, you are entitled for a tax refund. Tax refunds can be important to taxpayers and other investors. However, they require that the amount of money refunded be disclosed to them in advance. Most taxpayers and investors want the exact amount of tax refunds be disclosed to them. This will help them in assessing the overall value of the refund.

How to analyse if you are eligible for tax refunds

Before you claim for tax refunds, you need to analyse whether you are eligible. To determine whether you are eligible for tax refunds, you first need to file your guaranteed refund papers. If you are a salaried individual, you will have to fill out the P-16 form. This will help you to get your guaranteed refund money. Tax refunds should be claimed within a year of the last date of assessment. This is because tax refunds are based on the previous year’s earnings and tax liability. You need to disclose all sources of income to avoid penalties later.

Claiming tax refunds

Before you apply for tax refunds, acquaint yourself with tax refund related information like the frequency and maximum money awarded as tax refunds. You should also be aware of revised returns in case you forgot to file some documents or when additional documents have to be submitted. This will help you to get a broader view about tax refunds.

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