Tax Rebates & Refunds

Know more about the tax refund procedure in the UK

June 28, 2011
Posted in Income Tax — Written by Chris

The amount of tax you pay every year depends on your employment status. It also depends on whether you are self-employed or working for an employer. These factors can greatly affect the benefits you get and your employment rights.

You are employed if:
• You work for a fixed number of hours
• You are required to do the work on your own
• Your income depends on the amount of time you work
• You get extra income for working overtime
• You are told how, where and when to do your work

On the other hand, you are self-employed if:
• You offer the tools required for completing your work
• You take responsibility for the failure or success of the business
• You choose who to hire and whom to work with
• You have several different customers/clients at any one time

There are chances wherein you can be self-employed and employed at the same time. For instance, many people work during the day time and run their individual business during weekends and evenings. Irrespective of your employment status, you are officially required to pay taxes to HMRC. However, there are situations wherein you may end up paying too much tax. This can be because you were put on a wrong tax code.

In case HMRC does not have the required information about you, then you might end up overpaying on taxes. You can use a tax refund calculator to determine the amount of overpaid tax. Once you know that you are due a tax refund, you can fill in and submit the required documents to HMRC. To avoid confusion, hiring a professional would be a good decision.

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