Tax Rebates & Refunds

Refer to these simple tax calculation techniques when filing for returns

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

More often than not, people find it difficult to calculate the amount of tax they are owed by the government. It can be a tricky procedure if you are not familiar with the process. You are entitled for a tax return only if:

• You have overpaid/ extra tax has been collected as emergency tax
• Your income was below the tax free threshold
• You have overpaid the taxes and are leaving the country before the end of the year

If you fall under the above mentioned categories, you may be entitled to a tax return. Mentioned below are some tips that will help you to calculate your tax return.

Add up the amount earned in the financial year

You need to have a record of the amount you have earned in the financial year and also the amount that you paid as tax to hand, if you want to calculate the tax return. It should be noted that a tax rebate claim can only be filed after the end of a financial year. It is for this reason that you will need to calculate the total amount. There are certain cases in which the HRMC grants exceptions for individuals. These include tax rebates mid-year if the individual intends to leave the country or change their job.

Taxable income

The taxable income can be obtained by subtracting the tax allowance from the gross income. It should be noted that a tax allowance is denoted by tax codes.

Online calculator

An online tax calculator is one of the easiest ways to find out the amount of tax you are entitled to. More often than not, these calculators are free and provide highly accurate results.

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