How to Get a Tax Rebate in the UK

Wed, Jul 4, 2012

Financial Advice, Financial News

When people in the UK change jobs or become self-employed, part-time employed or a contract worker they should, in theory, pay less tax. The problem is that the taxman (also known as HMRC) doesn’t always update your tax code and it means that millions of people are paying too much tax.

If you’re anything like me, you want to pay as little tax as possible and claiming money back from the taxman can be ever so sweet! Here are a few ways you can check to see if you’re eligible for a tax rebate.

  • Double check your P60 form. Your P60 is the end of year tax form which shows you exactly how much tax you have paid, along with National Insurance and other contributions. Note down how much tax you’ve paid so that you can check to make sure it’s correct.
  • Check how much tax you should have paid. Using an income tax calculator online, you can enter your details to see how much tax you should have paid based on your personal situation. If this is less than the amount you paid on your P60 then you could be entitled to some money back from the taxman.
  • Check your tax code. One final check before you write to HMRC is to make sure your tax code is right. As a general rule of thumb, your tax code should be 8010L for under 65’s, 1050P for 65-74 year olds and 1066Y for over 75’s. If this isn’t right, definitely contact the tax office.

By following these simple steps you can provide the tax office with enough evidence to support your rebate request and you can usually expect a decision within 6-8 weeks.

The amount you get will depend on your situation but it’s not uncommon for people to reclaim £1000s in overpaid tax. Just make sure you are caution of companies offering to do it on your behalf for a cut – it’s easy enough to file a tax rebate yourself and keep all the profits!

Hector is the guy behind How Much Tax Will I Pay, a free online tax calculator that will help you to make sure you are paying the right amount of tax.

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