Tax Rebates & Refunds

Frequently asked questions pertaining to tax rebates

February 21, 2011
Posted in Tax Rebates — Written by Geoffrey

If you are a foreign national residing in the UK, then you could be due a tax rebate. If you are confused about how the process works, here are a few FAQs that can simplify the process for you.

What is income tax?

Income tax is the tax deducted by HMRC (Her Majesties Revenue and Customs) on income above the tax-free allowance.

What are tax rebates?

Tax rebates are the refund you get when you have overpaid your annual tax. You can be entitled to a tax rebate due to various reasons. Some of them are:

1. You are put on the wrong tax code.
2. If you have spent your own money as part of your job. For instance, if you get your own car at work or you use your personal tools and equipment at work.

Is it necessary to be self-employed to claim a tax rebate?

The answer is no. If due, you can claim a tax rebate even if you have a job that pays tax under the PAYE scheme.

What does PAYE stand for?

PAYE stands for Pay As You Earn. It is a tax system adopted by the HMRC to levy taxes on people who are not self-employed.

I no longer reside in the UK. Can I still claim a tax rebate?

Yes, even if you are not a citizen of the UK, you can be entitled to a tax rebate. However, you should apply within six years of leaving the UK to receive the money.

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