Tax Rebates & Refunds

An instant guide to tax rebates in the UK

February 18, 2011
Posted in Tax Rebates — Written by Chris

To explain, in simple terms, a tax rebate is a financial refund for the excess amount of money you may have paid as tax. Tax paying individuals will automatically receive a refund check from HMRC, although tax rebates/ refunds are quite common.

Should you get a tax rebate?

You may receive a tax rebate due to many reasons. In most cases the employers and pension providers calculate tax deductions according to the wrong tax code. The government sometimes deducts a tax amount referred to as ‘emergency tax’. This amount comes back to you, in part.

If you are a regular income tax payer then you may be entitled to a huge tax rebate. But income tax is not the only reason to be receiving tax refunds. There can be many other reasons for you to be entitled to a tax refund but these instances occur more rarely.

If you have been charged too much money on home and property tax then you will receive a small rebate. The size of the refund is small as new property owners may not have paid taxes on their previous home. The home tax amount is calculated on the estimated worth of the house and not on its actual and real worth. You may have been charged excess home tax than what you should be paying. The tax levied is lesser than what you will need to make payments in later years, but this is a rare case.

One of the prime reasons for you to have paid excess tax is a wrongful tax calculation. You will usually receive a refund cheque at the end of the tax year.

No Comments (Leave comment »)

No comments yet.

Comment RSS | TrackBack URL

Leave a comment