Tax Rebates & Refunds

How to determine your tax code

January 13, 2011
Posted in Income Tax — Written by Geoffrey

When it comes to tax rebates, many people get confused on whether or not they are due some money back from the HMRC. Each year many people pay too much tax due to some reason or other. If you think you too have paid too much tax you can find out using a tax rebate calculator.

When you stop working for your employer, you will be given a P45. This has all information regarding your income and the taxes you paid during the last financial year. It also mentions about your tax code. Common tax code letters include L, P, T, Y and K. BR, NT and D0 are other types of tax codes. The two letter tax codes means that you have more than one source of income.

If you think you may have been on the wrong tax code you just need to enter your details into a tax rebate calculator. It will then display whether you are due a tax refund from the HMRC or not. If you are entitled to a tax rebate, the tax rebate calculator will show you the amount.

Things to know before changing a job

If you are changing your job or moving to another company, it is important to submit the P45 document to your new employer. If your new employer is not aware of your tax code, you will be put on an emergency tax code. In such a case, you will end up paying excess tax and have to claim it back at the end of the tax year.

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