What is a tax refund?
A tax refund is a refund of tax which has been overpaid. There are a number of reasons why tax may have been overpaid, including:
• you start a new job and are taxed under an emergency code for a while
• HM Revenue and Customs (HMRC) sends the wrong tax code to your employer or your employer does not use the correct code
• you are self-employed and you make payments on account for the following year, under the Self Assessment scheme. These payments are too high because of a change in your circumstances, for example, there has been a downturn in your business. You have not made a claim to reduce your payments on account and your final tax liability turns out to be less than the tax you have actually paid
• you’re a pensioner with more than one occupational pension and your tax-free personal allowances have not been allocated properly so you’ve paid too much tax
• you have more than one job. The employer at your second job will automatically deduct tax at basic rate so you may not get the benefit of all your tax-free personal allowances. This will frequently apply if you are a student or low-paid worker.
Did you pay too much tax? Do you planning to leave UK during the tax year and would like to get your tax back? If yes, please contact with our team today!