Am I due a tax rebate?
It’s thought that one in three people are entitled to claim a tax rebate. That’s a lot of people and you could easily be one of them.
So much money goes unclaimed from the tax office, often due to a lack of knowledge or simply not having enough time to deal with the process.
Getting to grips with your tax position can really pay off giving you money back and tax savings in the future.
Tax rebates explained
In simple terms a tax rebate is due when an employed person has paid too much tax during the course of a financial year, and is eligible to claim some back. Self employed tax payers can also be due a tax rebate through the self assessment system.
It is important for you to find out if you have overpaid, because in some circumstances you could miss out on your tax rebate entitlement.
How do I know if I am due a tax rebate?
A tax rebate can be claimed for a four year period so it is best to think about not just this financial year, but the four previous years too.
If you are employed, there are many ways in which you might qualify for a tax rebate. One of the main reasons is having expenses related to your job.
At Tax Rebate Services we find there is rarely, if ever a “one size fits all” scenario but we typically find that those asking “Am I Due A Tax Rebate” fall into one or more of the categories below:
- Travel – Travelling as part of your job.
- Uniform – Washing and maintaining uniform or safety clothing.
- Tools and protective clothing – Items that you must pay for as part of your job.
- Professional fees – When membership of a professional organisation or Trade Union is paid.
- Leaving the UK – If you have already emigrated, or are leaving, during a tax year, it is likely you can reclaim tax.
- Pension tax relief – For those who contribute to a private pension and are higher rate tax payers.
- Working from home – Household expenses like gas and electricity that you use because you have to work from home.
This list doesn’t include everything like having an incorrect tax code but gives you a good idea of what can be done if you are employed under PAYE.
Tax rebates and your tax code
HMRC gives your employer or other income source a tax code to use which tells them how much income tax to deduct from your earnings.
The tax coding system isn’t perfect which can result in the wrong tax code being used and you not paying enough or too much income tax.
Found on payslips or online via the HMRC app or personal tax account your tax code should be checked regularly especially if there is a change in your tax related circumstances.
HMRC expects you to let them know about changes which could effect your tax code and let’s you give them your up to date information online.
Other reasons for being due a tax rebate
With so many different circumstances resulting in someone paying too much tax the list is long.
Here are some more common reasons for you to consider:
- Changing jobs or having more than one job at the same time.
- Being made redundant.
- Cashing in your pension.
- Paying UK tax as a non resident.
- Leaving the UK part way through a tax year.
Tax rebate timescales
There’s usually a four tax year limit before it’s too late to claim overpaid income tax.
This applies to both employed and self employed tax payers.
A tax year is different to the normal calendar year and runs from the 6th April one year to the 5th April the following.
Good to know if you are due a tax rebate
- It doesn’t matter what your job title is if you’ve paid tax you are eligible.
- Reclaiming a rebate on tax paid is perfectly legitimate. It is not the same as tax avoidance and doesn’t exploit any loopholes.
- If you’re eligible it’s expected that you will claim but, if you don’t, you won’t get back the money that you are entitled to.
- Don’t get caught out by tax rebate scams. Fraudulent emails and texts claiming to be from HMRC are common so please be aware and be diligent.
How do I get my tax rebate?
The way in which you claim your tax rebate depends on the type of tax you are claiming back and the corresponding HMRC department.
Sometimes you can be due a tax rebate and HMRC refunds your overpayment automatically in which case they will send you a P800 form so you can reclaim your overpaid tax online or you can wait and get a cheque through the post.
If you need to reclaim work related expenses a P87 form or a self assessment tax return will need to be submitted. The P87 and self assessment tax return forms can be completed and submitted online or printed and posted to HMRC.
How do I contact HMRC if I need more help?
HMRC can be contacted online or by phone. They offer online and phone support for most enquiries.
You can also receive updates relating to your tax position in your online personal tax account or HMRC app.
