How do you claim tax back?
Paying tax is a fact of life for most of us, but it is surprisingly easy to pay too much and leave yourself out of pocket. Here is how to claim tax back from HMRC.
If you think you have paid too much tax getting your money back is should be a top priority.
Here is how to find out if you have paid too much tax and what you need to do to get your money back as quickly as possible:
Have I paid too much tax?
Your employer or pension provider use the tax code you are allocated by HMRC to determine how much tax you should be paying.
If your tax code is not correct you could be paying too much or too little tax so it is important to check they have it right.
Is it free to claim tax back?
Yes, it is completely free to claim
tax back from HMRC.
There are companies that offer to reclaim tax overpayments on your behalf in exchange for a cut of your rebate. However, because it is relatively easy to claim tax back yourself you should only consider using one if you do not think you will claim on your own.
The exception to this is if you have very complex tax affairs, in this case it is likely to be sensible to get advice from a qualified accountant.
What is my personal allowance?
The personal allowance is due to increase to Ј11,000 from April 2016.
Income Tax is taken from the money you earn each year, but everyone can earn a certain amount of money before paying tax, this is called your annual personal allowance.
For those of you born before the 6th April 1938, there are currently three levels of personal allowance available to you based on your income:Source: www.money.co.uk