Are You Entitled to a Tax Rebate?

Are You Entitled to a Tax Rebate?

There are many people who, after filing their tax returns, never get to know that they paid more taxes than they were supposed to, and that they are actually due a tax rebate. And although these rebates are not usually mind-boggling figures, they are enough to help one out with one’s budget.

Knowing whether you are entitled to a tax rebate is very simple since majority of applications relate to the tax free personal allowance in one way or another. Through legislation, the government has allowed a tax-free allowance (£6,475 for the 2010 – 2011 financial year) for every individual earning less than £100,000 per annum. This amount is distributed evenly throughout the year, bringing it to approximately £540 every month. If it happens that you do not fully enjoy the £6,475 tax-free allowance, then you have every reason to ask for a tax refund.

Reasons why people may fail to fully enjoy the tax-free allowance may be due to quitting their jobs during the tax-year, starting their jobs during the tax-year, and entering or leaving the UK during the tax year among other things. If your annual income is less than £6,475, then you are entitled to a refund of all the employment taxes that you have paid. If you worked partly during the year but your income is more than the tax-free allowance, then you are entitled to a rebate, but which will be less than the taxes that you paid.

One thing that you need to keep in mind is that you should not expect the revenue commission to tell you when you are entitled to your tax-rebate. It is up to you to determine this with the help of your tax agent.

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