Tax Rebates & Refunds

Information on tax rebates

July 30, 2011
Posted in Tax Rebates — Written by Geoffrey

Many of the people who calculate rebates do not understand the basics about them. It is necessary that a tax payer fully understands the basic concepts relating to tax rebates.

How does this situation arise?

There could be many reasons due to which the government could end up owing you some money. However, most of the reasons arise from the tax free allowance that the government provides to an individual who earns less than a hundred thousand pounds. The tax rebates basically arise due to the unused tax free allowance. This could remain unused due to various reasons, such as losing or quitting a job, or permanently leaving the country. The explanation is that due to the unused allowance you were forced to pay more tax than necessary and that is the amount that you reclaim.

How long does the process take?

Tax rebates is a major issue in the UK. Therefore, if you want your refund early, then you need to ensure that you put in your application and that your form is properly filled. All your documents and papers must be in place. Moreover, if you make your claim during the peak time of the year, it is bound to take longer than usual. This is because, at that time of the year when everybody is expected to file their tax, there is a greater workload. However, under normal situations, it would take around six to eight weeks to receive your tax refund.

How far back can you claim for?

It is advisable that you claim your refund as soon as you realise that you are owed some money. This suggestion is made because it is difficult to keep track of all the documents unless they are filed meticulously. However, as far as the law is concerned, you are allowed to claim refunds for the last six years.

These are just the basics concepts of tax rebates one needs to understand.

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