Tax Rebates & Refunds

Some FAQs related to income tax and tax rebates

October 23, 2010
Posted in Tax Rebates — Written by Chris

If you are a foreign national residing in the UK, then you could be due for a tax rebate under a number of different circumstances. If you are confused about how the process goes, here are a few FAQs that can simplify the process for you.

What is income tax?

Income tax is the tax deducted by HMRC (Her Majesties Revenue and Customs) on income above the tax-free allowance.

What are tax rebates?

Tax rebates are the refund you get when you have overpaid on your annual tax. You can be entitled for tax rebates due to various reasons. Some of these are:

  • You are put under the wrong tax code.
  • If you have spent out from your own pocket for your job. For instance, if you get your own car or you use your personal tools and equipment at work.
  • If you are employed on your own. If you are a CIS construction worker then you may have to pay for your employment. In such a case, you are due for tax rebates.

Is it necessary to be self-employed to claim tax rebates?

The answer is No. If due, you can definitely claim for appropriate tax rebates even if you have a job under PAYE and not through self-employment.

What does PAYE stand for?

PAYE stands for Pay As You Earn. It is a tax system adopted by HMRC to levy taxes on people who are not self-employed.

I no longer reside in the UK. Can I still claim tax rebates?

Yes, even if you are not a citizen of the UK, you can be entitled for tax rebates. However, you should apply within six years of leaving the UK to receive the money.

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