Millions Of Pounds Due to UK Tax Payers
You may be set for a tax refund, , without even knowing it. According to the CIT (Charted Institute of Taxation), HM Revenue & Customs has due to a computer glitch, issued the wrong tax codes to individuals, all over the United Kingdom.
The HMRC database reportedly lost information it held concerning tax-payers who had left their jobs.
As a result, it combined current employment records with old data, concluding that those currently holding one job are in fact earning more like someone who has two separate incomes. The result: many tax payers have been incorrectly placed in higher earning brackets and have paid more tax than they ever should have.
Experts stress the massive importance of checking if one is eligible for a tax refund, because of the ease at which people can find themselves overcharged and in the incorrect tax bracket.
Do some investigation and make sure that you are on the correct code. Look on a ‘PAYE Coding Notice’ – this notice tells you what your tax code is. It is usually sent out in January or February each year. If you find out you are listed under the wrong code and due for one of the numerous tax refunds, contact your tax office straight away.
Find an online tax refund calculator to do a calculation and see where your current obligation stands. These calculators ask you for three things, typically. Firstly, it would ask you for your total earned income , over the past twelve months. Then you need to select, from the drop down, the year for which you will be applying to get your overpaid tax back.
Tax years, in the UK, run from April to April. Therefore, when you select your year, it would be two years back to back. For example, 2004-2005 or 2007-2008. It is British law that, one can only claim tax for the past 5 tax years.
In general, there are two options; either you can go directly through the Inland Revenue or a tax refunds agent. The advantage of the Inland Revenue would be that you save on a small fee, which the agents would ask.
In turn, the advantages of the agents are that they take care of the administration and dealings with the Inland Revenue . They often have a direct and prioritised line to the Inland Revenue and get things done much faster than an individual.
Getting your tax refund can be a great way of getting some extra cash. Use an online calculator and get claiming!
Nikki writes for www.taxrefunds.co.uk – a online tax refunds agency. The site enables UK individuals to claim their overpaid tax back.
How Do I Legally Claim My Tax Back From The Government?
File your Tax Return on Time
Your online tax return, plus any tax due, must be sent to HMRC by 31 January of the following year. Follow these instructions, if you would like to file a return online.
For a Self Assessment For a DIY Tax Return, you would need put together a statement of earnings, in order to show how much you earned whilst self employed.
You will also need any P45/P60 docs from any PAYE or full time employment you may have had.
For a CIS (Construction Industry Scheme) Tax Return, you will require the following:
Pay slips for the tax year or your statement of earnings, for each of your employers. If you have had PAYE or permanent employment in the same period, then you will also need to submit your P45s and P60s as well.
You can claim expenses for work purposes only, and you will need a break down of these expenses , as you can claim 10% of your salary as expenses.
Late returns will automatically receive a 100 pound penalty and a second 100 pound fine applies if you have not filed and paid by 28 February. Any further delays could result in more serious penalties. It is important to note that it is a legal requirement to keep your filed tax return and related information for 6 years, so it is advisable to always keep copies whether on file or electronic copies.
Check your Tax Code
Always check with your personnel department, that you are being taxed under, that you have the correct tax code. If you find yourself unsure of your code, visit the HMRC website, where you fill in your PAYE number and they will direct you to the tax office where you can obtain the correct information.
An incorrect tax code is the leading cause of overpaid tax. This kind of thing happens when starting or moving employment together with paying emergency tax.
Check Previous Tax Returns
It is crucial to check for incorrect Tax Codes on previous returns, since you can claim a tax refund as far back as 5 years .
Every year staggering amounts of funds go unclaimed. We wish you the best of luck in getting your overpaid tax back!
Nikki writes on issues of tax and is a part of http://www.taxrefunds.co.uk. The site is a fantastic service where you can apply for a tax refund today!