Tax Rebates & Refunds

The reason why a tax overpayment could have occurred

June 15, 2011
Posted in Income Tax, Tax Rebates — Written by Jennifer

There are a lot of steps which one must go through to get a tax refund in the UK. A person is entitled to a refund when he or she overpays on their taxes. They might overpay via a deduction by their employer or a reduced pension. People who have their own business might overpay with regards to tax.

Why have I overpaid on my tax?

A person prone to frequent job changes might overpay. Also students who have not filled in their P38S (student employee form), might get a tax deduction. Others situations include people working multiple jobs, whose employers might have used the incorrect job codes. An employee who has left their job halfway through the year also falls under the list of overpaying taxpayers.

Information about allowances and income can be found under a PAYE coding notice. If you have not received the above notice, there are other sources where one can find that information. Those sources are a P45 or a salary receipt. They will tell the amount of tax deducted, before their income was handed to them.

You should have a look at your tax code and make sure that it is the correct one, so that you do not end up paying more than you need to.

Am I overpaying through my pension?

Once again the cause of this is an incorrect tax code. You should immediately get your information details updated with the HMRC. Multiple pensions mean multiple tax codes, hence multiple hassles. Tax paid on an annuity before 2007 could lead to overpayment.

There are a number of scenarios where overpayment could have occurred, and not all of them can be highlighted in this article.

An online tax service can ease your burdens and save you from a good deal of running around from pillar to post.

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