Tax Rebates & Refunds

Know more about employed and self employed tax rebates in the UK

June 2, 2011
Posted in Tax Rebates — Written by Geoffrey

The terms and conditions of you work define whether you are self-employed or employed. As your employment status can affect your benefit and employment rights, it will also affect the way you pay your National Insurance.

You can even be self-employed and employed simultaneously, possibly having a job during the daytime and running your individual business in the evening. Irrespective of whether you are employed or self employed, it is your duty to ensure that you pay your taxes regularly.

If you are employed

If you have a job, your employer is liable to deduct National Insurance contributions and taxes from your wages. Your income tax is generally deducted through the Pay As You Earn (PAYE) system. You are also eligible to certain benefits and rights such as paternity or maternity leave, Jobseeker’s allowance and sick pay leave. You are even entitled to get additional State Pension after retirement.

If you are self-employed

In case you are self-employed, you are liable to make your own tax payments along with National Insurance contributions. This means that you will have to file a Self Assessment tax return to inform the HMRC about your income. As soon as you begin your self-employment, you need to register with the HMRC for National insurance and tax.

If at any point in time you feel that you have overpaid taxes, you can use a tax rebate calculator to do a cross check. By filing a tax rebate application, you can claim to get the overpaid tax back.

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