Can I Claim A Tax Rebate?
If you think you may have paid too much tax, there are steps you can take to check if this is true and then apply for a rebate. If you are employed full time or part time then your tax will automatically be calculated and taken from your pay. Sometimes, things can go wrong that means you end up paying more tax than you need to. Here are just some of the reasons you might end up paying too much tax:
- If you change jobs and were issued with an emergency tax code
- Your employer used the wrong tax code
- You had more than one job
- You left your job before the end of the tax year
- You were a student and only working during term times
- Your role changed from full time to part time
These are just some of the reasons that you might end up paying too much tax as an employee. If you are self-employed, you will file your own tax return and then be issued with a tax bill. If you made a mistake on your tax return, you will be able to make changes and then request a refund online.
Whether you are an employee or self employed, you should always check your tax documents carefully as HMRC can make mistakes. If mistakes are made and you miss them, you could end up missing out on hundreds of pounds worth of overpaid tax.
How do I know if I’ve paid too much tax?
You may receive a P800 calculation at the end of the tax year if HMRC suspects you haven’t paid enough tax, or if you have overpaid tax. A P800 is a tax document which outlines how much tax you should have paid based on the information available and compares this to how much tax you actually paid. If you think the information is wrong, or if HMRC didn’t act on information you provided, you have 60 days to query the information.
What if I only had one job?
If you only had one job during the tax period then you will be issued with a P60 at the end of the year. This form will outline how much tax you paid and will be used to automatically issue a tax rebate. If you are in the same job, you will often have the tax added to your next payslip so you won’t need to take action. If this doesn’t happen, you should talk to HMRC to find out how to get your tax rebate.
What if I’ve had more than one job?
If you had more than one source of taxable income then it might be more difficult for HMRC to piece together the tax you’ve paid. If you have multiple sources of income, or if you are self-employed, it’s important to keep accurate records for tax purposes.
What if I was given the wrong tax code?
A common problem that students face is that they take on casual work over the holidays and are then taxed the maximum amount on something known as an “emergency tax code”. This is used when a more suitable tax code cannot be found. If you change jobs without giving your new employer your P45, you will be also be placed on an emergency tax code. You will still need to wait until the end of the tax year to claim a rebate, but you can contact HMRC for the correct tax code so you don’t continue to overpay.
When will I get my rebate?
The tax year runs from the 6th April to the 5th April every year. You have to wait until the end of the tax year to be able to claim a tax rebate for that year. The first step will be to wait for your P800 calculation in the post. This will outline how you can apply for your rebate. In most cases, you will be able to log in to your Government Gateway account to claim your rebate refund. This will allow you to specify a UK bank account where you would like the money to be sent. If you don’t claim your rebate within 45 days, HMRC will send a cheque to your address and you will be responsible for paying this into your account.