All you need to know about reclaiming overpaid tax

All you need to know about reclaiming overpaid tax

If you are paying for travelling expenses or you are washing your own uniform, you are due a HM Revenue & Customs tax rebate. Nonetheless, it is important to pay attention to the fact that you are only able to solicit a reimbursement within four years of the end of the tax year. This basically means that you have to grab your calculator and determine exactly how much you are entitled to. If your situation is straightforward, you will not encounter difficulties when claiming a tax rebate in UK. Although you are likely to find tons of information on the Web, you can read this article to learn the essential details.

When you can claim tax back

The good news is that the HMRC makes available a tool, namely the P800 calculator, that allows you to determine whether or not you can claim a tax refund. It is essential to keep in mind that reimbursements address only those who have paid too much. Nevertheless, why do you overpay in the first place? Well, the fact is that there are a number of explanations. Sometimes, the HM Revenue & Customs sends the wrong tax code. The reason why the HMRC makes such mistakes is that people keep changing their employment patterns. If you have recently moved to a new employer, you may not have the correct tax code. Overpayments are also arise when you have more than one job. If you find yourself in the aforementioned situations, you can recover your money.

How to claim a tax refund

Obviously, you will have to notify the HMRC about your situation. You have the possibility of doing so in person or online. You will have to make an application on the P50 form, which you can easily find on the official website of the revenue authority. In addition to this form, you will need to transmit parts 2 and 3 of the P45, the form you receive from your employer. All you have to do next is wait to receive the cheque. When applying for a rebate, it is important to be very careful. Many people have fallen victim to phishing frauds. If you happen to receive an email requesting credit card or back account details, ignore it or, better yet, send it to the HM Revenue & Customs.

When you should claim back overpaid tax

While it is true that you do have four years to make a UK claim tax refund, you do have to respect certain time limits. The tax year begins on April 6th and ends on April 5th the following year. As long as you respect this time limit, you have nothing to worry about. If you are late, you will lose your right to a refund. This is the reason why you should not be late when making a claim for repayment. Once the deadline has passed, you will not be able anymore to apply for a reimbursement for that year. Even if you have proof, the HMRC will not be able to help you.