How do I get a Tax Refund?

how do i get tax refund

There might be times when you find you have paid too much tax. Thankfully, this money isn’t simply forgotten about and used to boost the bank balance of HMRC; you can claim for a tax refund. Here are the various ways in which you should go about it.

If you’re employed then you can either call or write to HMRC and explain to them why you believe you have paid too much tax. If you’ve used an online calculator or have been on the wrong tax code, for example, ensure you have as much evidence as possible so your case can be resolved as quickly as possible.

In the event that you are due a tax refund, it will usually be paid back to you in your wages in the form of a corrective, one off payment, which will not

be taxed along with your other income.

Self-employed individuals might find they have paid too much tax if they’ve made a miscalculation on their tax return or because HMRC have made an error somewhere, perhaps because you moved from being employed during the year and it confused the system.

The first thing to do is to correct any errors on tax returns, as this will allow HMRC to correct your tax bill. Bear in mind that if your refund will be for a significant sum of money you’ll probably need to provide some evidence that proves your error.

Once the amount to be refunded has been confirmed, HMRC will either place the amount into your self-assessment account, meaning a lower tax bill next year, or send the money via cheque, or by electronic transfer straight into your bank account.

Source: www.friendly-accountants.com

Category: Taxes

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