Tax Rebates & Refunds

How do tax refunds work?

May 27, 2011
Posted in Tax Rebates — Written by Chris

Most of us work hard to earn some money. So, when a certain part of your salary is deducted for tax purposes, you feel the pinch. But do you know you maybe paying extra tax? Many of us are unaware how much money is deducted from our salary every month in the form of taxes. Employees trust their employers completely and do not always double check to see if we have paid too much money.

What is a tax refund?

The extra tax that you have paid can be returned to you by the government. This return of the excess tax is known as a tax refund. If you make an application to the HMRC, they will inform you if they have received more than the required amount from you, in the form of tax. You should therefore be constantly aware of how much tax you should pay. You can always use the help of a tax advisor to see if you are entitled to a refund.

How do you know if you qualify?

All organisations are provided with a tax code for all their employees. The tax code is printed on your P60, which clearly states if you should pay any tax and how much. If you think you have paid too much tax you can enter your financial details into a tax calculator to do a quick check. If you have paid too much, you can make a claim to HMRC. All you need to do is organise all your documents pertaining to your income and expenses and fill in the forms correctly and legibly.

No Comments (Leave comment »)

No comments yet.

Comment RSS | TrackBack URL

Leave a comment