Tax Rebates & Refunds

Reasons to apply for a tax rebate

July 29, 2011
Posted in Tax Rebates — Written by Chris

At the end of a tax year most tax payers wait anxiously to see if they are entitled to a tax rebate. But not everybody qualifies for a tax rebate. Here are some of the reasons why a tax rebate arises and why some people are eligible for tax rebates, while others are not.

Faulty overpayments

One of the main reasons why a tax rebate arises is due to faulty payments of tax due to which one may end up paying more tax than necessary. When the individual realises the mistake in the payments, they have the right to contact the HM Revenue and Customs office and inform them about this. They will then direct them to apply for a tax rebate in which he or she will receive the amount which was overpaid.

Working as a student

This is another major reason for tax rebates to arise. However, being a student does not directly qualify anybody for a tax rebate. The tax rebate arises because most students do not have permanent jobs and subsequently would not have worked for the whole year. When this is taken into consideration, it can be seen that the government ends up owing you money.

Business expenses

This is another reason for tax rebates. There are certain expenses that an individual might incur due to their business. Now these expenses are supposed to be written off. However, if not written off, there will be taxes charged on it which you might not need to pay. The extra tax paid on these expenses can be reclaimed in the form of a rebate.

These are three of the most important reasons for tax rebates and they must be thoroughly checked before you file your taxes.

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