Tax Rebates & Refunds

Making sure you pay the right amount of income tax

August 30, 2011
Posted in Income Tax — Written by Jennifer

If you’re employed, income tax is generally worked out for you by HM Revenue and Customs (HMRC). Even if self-employed, there are forms to fill in and systems in place to make sure you are paying the right amount.

Even with this system in place, mistakes can still be made. It is important that, on your end, you check all factors that could lead to you paying the wrong amount of income tax. You can always claim a tax rebate if you’ve overpaid, but it can be much simpler to get things right from the start than having to pursue a claim later on.

Factors that may affect your income tax

Your tax code. You can find your tax code on your payslip, or on your annual P60 statement. Checking your tax code with HMRC is especially important if you have just started a new job (you may end up on an emergency tax code, thus paying more tax than you need to), if you have more than one job or you change jobs a lot.

Becoming self-employed. Find out exactly what you need to do to complete an accurate tax return, and make sure you keep meticulous records.

You get a second job, start getting company benefits or start getting a state pension – tell HMRC about any of these changes right away

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