Tax Rebates & Refunds

Learn more about tax rebates if about to start work in the UK

July 28, 2011
Posted in Tax Rebates — Written by Jennifer

Working in the UK is not easy, especially with all the hassles and difficulties one faces while filing for taxes. The taxation system in the UK is a little different from certain other nations. It becomes hard for non-residents to understand.

In this article we will study certain facts related to the UK tax system. We will concentrate mainly on tax rebates and refunds.

PAYE and self-employed taxes

The PAYE system is used by employers to deduct tax from their employees. People who work as teachers, nurses and receptionists etc. as well as those who are self-employed fall under this category. With the PAYE system of tax deduction, your employer takes a certain amount from your usual pay as tax. Employers might deduct more than the required tax amount. You can file for a tax return with the tax governing bodies and can get your excess tax back. If your plea is accepted, it does not take more than 45 days to get your tax rebate.

You must calculate the amount of tax using a tax calculator and must decide if you are eligible for a tax refund or not. In the past, the PAYE system has been prone to tax problems and therefore has had to consider a fair amount of rebates.

You can either claim your tax back if you are leaving the UK, or at the end of the financial year. You can also claim work related expenses back from the tax governing authorities. The amount reclaimed is very helpful and can boost you financially. Many people avoid claiming for their tax returns since the process is long and requires a little effort. Claiming your tax back every year is advisable.

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