Types Of Tax Refund In The UK
A tax refund or tax rebate is a refund on taxes when you paid more than you owe to HMRC. Taxpayers are often eligible to get a tax refund on their income tax if the tax they owe is less than the sum of the total amount of the taxes that they payed during the tax year, plus the refundable tax credits that they claim. There are a number of reasons why tax may have been overpaid, including:
Refund On Tax Return
You can claim a refund if you paid too much tax, for example because you:
- made a change to your tax return after you filed it
- entered the wrong amount when paying your Self-Assessment bill
- stopped being self-employed and have payments on account
How you claim depends on how you filed your Self-Assessment tax return. If you did your tax return online, then you simply Log in to your HM Revenue and Customs (HMRC) online account. From ‘Your tax account’, go to ’Self-Assessment overview’ and Choose ‘Request a repayment’ from the left-hand menu, after that all you have to do is Follow the instructions to request a repayment.
If you did a paper tax return, You’ll usually get a tax refund paid directly to your bank account if you included your bank details on the Self-Assessment form. If you didn’t, you can call or write to HMRC and explain why you think you’ve overpaid.
When you write to HMRC, include your: Unique Taxpayer Reference (UTR) – this is on previous tax returns, bank details or your nominee’s bank details – you can also ask to be repaid by cheque instead.
Refund When You’re Employed
You may be able to claim a refund if too much tax was taken from your pay. How to claim depends which tax year you paid too much. The tax year runs from 6 April to 5 April the following year.
You can make claims back to the 2012 to 2013 tax year.
Refund You Left Your Job
You can’t get a tax refund straight away if you’re getting any of the following:
- Jobseeker’s Allowance
- Employment and Support Allowance
- Career’s Allowance
- Incapacity Benefit, if you’ve been getting it for more than 28 weeks
If you’re out of work for less than 4 weeks and you’re due a refund, you’ll get one through your wages from your new job. You can’t claim a refund.
Uniform Tax Refund
Do you have to wear a Uniform to work like a branded supermarket uniform, police Uniform or other Company Logo branded clothing? If so, and you must pay for the cost of washing and repairing it yourself, then you can claim a refund from the HMRC for all these expenses.
you can claim for up to five years of expenses. In this article we will see who is eligible and how you can make a claim?
If you’re claiming a tax allowance for the first time or you paid out more than £1,000, you will need to Fill in the P87 form online, you can submit it online also there are a lot of websites that offer to do this for you, but as most charge a fee, you can avoid this by doing it yourself for free.
You can also claim by post, you’ll have to fill in the P87 form online and print it out and send it to Pay As You Earn, HM Revenue and Customs, BX9 1AS. Write ‘Repayment Claim’ on the envelope to speed things up. You’ll need to fill in one form for each year you’re claiming for.
Refund When Buying A Life Annuity
You can claim a refund if you’ve overpaid tax on income from a life annuity that you’ve bought (sometimes called a ‘purchased life annuity’).
A life annuity is usually a guaranteed income for life, which you buy from an insurer in exchange for a lump sum.
You usually pay some tax automatically on life annuity payments, at a rate of 20%. But if you don’t need to pay Income Tax because you don’t earn more than your Personal Allowance you can:
- ask to get tax-free income from your life annuity
- reclaim tax you’ve overpaid