We understand that dealing with finances is often overwhelming, especially if you need to claim tax back and are unsure how. Understanding how to pay the right amount of taxes is one thing, but knowing how to claim a tax refund is another.
Whether you’re an experienced taxpayer or are relatively new to filing for the first time, we hope our guide will help. Keep reading to learn more about claiming tax back.
Tax Refunds
Essentially, a tax refund is money that’s owed to you by the government. You could be owed a tax refund if you’ve paid tax and ended up paying too much. Tax refunds occur often, and it’s not uncommon for people to overpay tax.
From employment expenses, such as accommodation costs during work-related trips, to overpaying through PAYE deductions, there are several reasons why you could be eligible to make a tax refund claim.
Typically, the refund process is straightforward to follow and involves having to reclaim overpaid taxes; however, it’s important to understand how to complete these claims properly. Before beginning the process of claiming a tax refund, you need to make sure that you correctly meet the eligibility criteria.
You should be eligible for a tax refund if you’ve:
- Overpaid tax through PAYE
- Incurred job expenses that qualify to claim tax relief
- Stopped working midway through the tax year
- Realised too much tax has been paid on your pension withdrawals
Although you should consider such criteria, they can vary depending on changes in tax laws and individual circumstances. The best way to make an accurate claim for a tax refund is by either seeking professional advice and support or better informing yourself on the government eligibility guidelines.
How to Identify a Tax Refund
If you believe that you’ve overpaid tax, there are a few steps to go through to ensure that you’re right with your claim. To start with, you’ll need to work out your tax liability and then compare it to how much tax you’ve paid.
Calculating your tax liability can be completed easily. All you’ll need to do is calculate your taxable income, including the gross amounts within your calculations; of course, only include the amounts before tax is taken.
It’s possible to deduct expenses or make a claim on allowances against your taxable income. We advise having key documents ready before making your tax rebate claim.
You’ll be required to provide information regarding your income and tax position, as well as a P11D from your employer, details of taxable state benefits received, bank statements, building society statements, dividend certificates, and details of overall expenses and rental income.
You’ll also need a P60 and P45 from either your employer or pension provider, as well as any statements that prove how much statutory interest has been paid, as well as the amount of tax deducted from that interest.
Claiming Back Tax
You can get a tax refund on any taxable income that you’ve paid taxes on. These often include pension payments, payments from your past or present jobs, a redundancy payment, job expenses like work clothing, and a self-assessment tax return, among others.
Claiming a tax rebate can be done easily, especially if you’ve been directly sent a P800 to let you know that you’re due a tax refund. If this is the case, you can claim a tax refund online using the Government Gateway. A P800 should be received at the end of every tax year.
P800’s contain information regarding whether or not you’re due any refunds. Although you’ll receive a tax calculation letter if you are owed a refund, you’ll also receive one if you owe tax, have provided HMRC with incorrect information about your income, or have given the wrong tax code.
It’s helpful to prepare yourself for a range of questions regarding your eligibility to make tax rebate claims; the Government Gateway will need proof of your eligibility before allowing you to apply for your tax refund.
However, if you’re self-employed and complete annual self-assessments, then you’ll be required to complete your tax return before HMRC can accurately process any refunds that are due. If you’ve yet to receive a P800, you’ll still be able to claim HMRC tax refunds, but you’ll need to contact HMRC directly by either calling them or visiting the HMRC website.
Dealing With Tax at DH Business Support
Dealing with taxes in general can be both confusing and time-consuming for some. We must pay tax, and ensuring that we’re paying the right amounts of tax on time is crucial to avoid any nuances. At DH Business Support, we offer expert advice and support to clients in need of assistance regarding their finances.
We help clients across the country by offering a wide range of specialised services. Our dedicated and hard-working team are both helpful and professional, remaining on hand at all times to make things like paying taxes a simple process.
From corporation tax to personal tax, we have a vast amount of knowledge and experience in numerous areas of tax. If you need to claim tax back but don’t know how we can help you. Our services are second to none, and we can equip you with all the information you need to know.
We pride ourselves on excellent communication and keep clients in the loop at all times. Our accountants have been working in the industry for a great deal of time, making them experts in all areas of tax.
Our tailored tax assistance allows clients to streamline their tax obligations effectively, while our dedicated team provides expert guidance in tax planning. If you’d like to find out more about our tax services, don’t hesitate to reach out to us today.