Tax Rebates & Refunds

A guide to help you with the tax rebate process

October 21, 2010
Posted in Tax Rebates — Written by Geoffrey

Tax rebate is a slightly complicated topic. People are often confused about the procedure of filing tax rebates and then actually getting it back. There are individuals who do not claim for tax rebates as they do not find it necessary. This should not be done as the money involved here is the cash you paid to your company from your salary. Here are a few things you should know about a tax rebate:

Reasons behind the extra payment of tax

Incorrect tax code – The main reason why employees end up paying extra tax is sometimes because of the incorrect tax code provided by a company. This often happens in the case of new employees when the tax procedure needs to be carried out immediately.

Term of employment – The tax rebate is calculated on a yearly basis. When it is calculated on your salary, it is considered that you will work with the company for a year and the tax is deducted accordingly.

Change in employment – The extra payment of tax is possible if your condition of employment has changed. For instance, if you became a self-employed individual or have retired.

Claiming the tax rebate

Many people know that they have paid extra tax but do not know how to claim it back. To begin the process, you need several documents that prove you are eligible for a tax rebate. A P45, P60, P85 and P86 are some of the important forms you need to fill in. It is preferred that you hire a legal advisor to file a tax rebate. This will allow you to get the right amount.

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