Tax Rebates & Refunds

Steps to know whether you are eligible for a tax rebate

November 1, 2010
Posted in Tax Rebates — Written by Jennifer

If you work in the UK and pay tax regularly then you must be aware that every year many individuals end up paying extra income tax. This is because they have been put on an emergency or wrong tax code. If you want to know whether you have paid extra income tax or not, perform the following steps:

Compare your income with the tax free allowance

If your annual salary is below the tax free allowance of a specific tax year then you can claim for tax rebates. The tax free allowance of the current year is £6,475. This means that if you earn less than this figure then you can claim back the tax which you have paid.

Read P60 and P45

If you have earned more than tax free allowance in a specific tax year then check your P60 and P45. These forms have the information related to your income and tax paid in a particular year. If you have lost any one of the forms then you can ask for a replacement from your employer. The employers will give you a statement of earnings on a company’s letter head.

Use an online tax rebate calculator

Once you have your P60 and P45 handy with you then input the tax related information in your tax rebate calculator. By entering your income and tax paid, you can easily know whether you have paid extra or not.

If you are due to receive tax rebates then you must apply for tax back immediately. Attach your documents with the application form and mail it to your local tax office. You will receive the refund within 4-6 weeks.

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