Tax Rebates & Refunds

What is the procedure to claim tax back?

June 29, 2010
Posted in Income Tax — Written by Jennifer

Tax rebate is generally the overpayment of tax that is refunded back to the taxpayer. It is above board and completely legal. Many people tend to overpay tax (some estimates specify as many as 33% of the entire population overpay tax at some point in their lives).

When someone is put onto an emergency tax code, they result in overpaying their taxes. The overpayment of taxes can also take place when you earn less than the tax threshold or work for half of the year. If you earn less than the tax free allowance in a financial year, you become eligible to get a complete tax rebate over the tax paid. However, if you have earned more than your tax-free allowance, you need to check the tax calculator to determine your rebate.

What you need to do to claim tax back

In order to claim a tax rebate, you must have the original copy of the P60 and P45. You must know that the P45 is necessary for every employment you had during the financial year. For instance, if you have had three different jobs during the same tax year, you need to provide three P45s. On the other hand, if you were employed during the end of tax year, you need to provide a P60 form.

In case you have lost your P60 or P45, you need to get a “Statement of Earnings” from your employer. However, it is not the official duty of your employer to provide you with a Statement of Earnings. Thus, it is your responsibility to retain all the originals.

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