Tax Rebates & Refunds

Understanding how a tax rebate works

January 19, 2011
Posted in Tax Rebates — Written by Jennifer

Tax rebate means being compensated for the overpayment of tax. There are many reasons why people may overpay their taxes. Many times, tax overpayment takes place if someone is put on an emergency tax code. On the other hand, if your earnings were below the tax threshold or if you had worked for only part of the year, you might be overpaying taxes.

When can one claim for a tax rebate?

According to the general rule, one can claim for tax refund after the end of a financial year. For instance, in 2011, individuals can claim a tax refund for the tax year 2009-2010. In case you are planning to leave the UK without taking employment until 5th April, then you can make a claim.

As per the UK laws, every employer needs to provide a P45/P60 to their employees. Both the P60 and P45 are important tax documents that have every detail about your income during the tax year and the taxes you paid. Once you have all details, you just need to enter the values into a tax refund calculator. Doing this, you will come to know whether or not, you are eligible for a tax refund.

What are the requirements for claiming tax?

While looking to claim a tax rebate, you should have an original copy of your tax documents – P45/P60. In case you have misplaced your P45 or P60, you can ask your employer for a statement of earnings. Displaying the same information, a statement of earnings is a perfect replacement to a P45/P60.

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