subject: The Government Has Millions Owed To People Like You [print this page] 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 mistake came in when the revenue and customs department, of the UK government, misplaced information on tax payers who, recently changed 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 people now find themselves, erroneously, 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, since numerous tax payers are unaware of the fact that they are being overcharged and have earned the right to a fair tax rebate.
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 require three fields , typically. Firstly, it would ask you for your income amount, 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 . The agencies also 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!
