The daunting three letter word, tax, can evoke a wide range of emotions. However, it doesnt have to, as the grass may well be greener on the other side.
The confusion around tax refunds is a common occurrence.
A tax refund is a repayment of PAYE tax that you have overpaid during the tax year. Statistics show that 1 in every 3 people in the UK is due a tax refund.
If you have lived and worked in the UK, you may be due for a tax refund, as a result of certain circumstances.
What are these circumstances?
Youve only worked for part of a tax year
Youve worked for more than 1 employer in a tax year
Youve had 2 or more jobs concurrently
Youve been taxed on a basic rate tax code
Youve paid emergency tax in the last 5 years
Youve left the UK before the end of the tax year (6 April-5 April the following year)
Youve been on an incorrect tax code at any point in the last 5 yearsIf you feel that youve been in any one or more of the above situations, then you have a very good chance of receiving a tax refund.
At this point, you may feel that going through all the hassle is not worth the refund, but its more than worth it. You can receive an average of 850 back possibly more if you havent claimed back at all in the last 5 years.
How to claim back tax through an agency?
You will need to complete the online tax refund form, provide the firm with your employment history details, as well as, original P45 and P60 documents. If you have lost these documents (or you dont have the original documents) you can use a Statement of Earnings – or an agency will assist you in obtaining the correct documents.
Thereafter, the process will be moved forward, you will be kept up to date about your tax refund status, and be will notified about any activity.
The greatest pleasure that comes with using an agency is that you can then leave the work to the agency and receive your money after 6 12 weeks.
Most agencies provide you with an online tax refund calculator. This gives you an estimate of your tax refund, based on the information you enter into the calculator.
Dont let the perceived hassle of claiming tax back stop you from getting what is due to you.