Tax Rebates & Refunds

Here are some common myths associated with applying for a tax rebate

November 29, 2010
Posted in Tax Rebates — Written by Chris

People often consider a tax rebate as a complicated procedure that involves a lot of paperwork. In reality, applying for a tax rebate is a relatively easy process and can be completed without too many problems. You simply need to maintain your documents and the HMRC will take care of the rest.

There are certain myths associated with tax rebates that can cause confusion. Some of these are mentioned below.

Myth 1: Tax rebate is termed as an income and can be taxed the following year

Fact: As the name suggests, a tax rebate is the extra money taken out of your salary by the government as emergency tax. It is not termed as income and hence will not be taxed.

Myth 2: I will not get a tax rebate if I have not filed for a return

Fact: If you pay a stipulated amount of money as tax, you become eligible for the economic stimulus payment. This includes low wage workers, railroad retirement and social security recipients.

Myth 3: The HMRC will call me and ask for my bank details for a faster service

Fact: There is no reason for the HMRC to contact you. Moreover, the HMRC will never contact anyone via email, SMS or by telephone. You will first have to submit the appropriate documents with the local tax agency and only after then will your case be considered. Avoid giving out your bank details to anyone via email, telephone or SMS.

Myth 4: Tax rebate is time consuming and there are chances of me being denied

Fact: This is true to a certain extent. However, the process can be quick if you include appropriate documents that give valid proof of your actual income. Ensure that you fill out the P45 form appropriately. You may be denied a tax rebate if certain documents are missing or if the HMRC feels that you have not provided adequate proof of your actual income at the end of the financial year.

No Comments (Leave comment »)

No comments yet.

Comment RSS | TrackBack URL

Leave a comment