Tax News – Tax Rebate Advice Tips and Resources for a Claiming A Tax Rebate Thu, 20 Jan 2011 18:54:58 +0000 en-US hourly 1 How To Get A Tax Rebate Fri, 20 Aug 2010 01:01:43 +0000 More people in the UK qualify for a tax rebate more than they think. Unfortunately, you will never see the taxman at your door telling you that you have paid taxes in excess and that you are eligible for a tax rebate. You have to fight for every pence you are owed. However, once you have applied for the rebate, you can relax and wait for the money.

There are a couple of reasons why people end up being entitled to a tax rebate, but the majority of cases arise because of the existence of the tax-free allowance, standing at £6,475. Without it, the majority of the applications for tax refunds would never have been heard of.

For the 2010 – 2011 financial year, the first £6,475 of the annual income of someone earning less than £100,000 per annum should not be taxed. To make it effective in the Pay As You Earn system, the amount is distributed evenly throughout the tax year.  Any event or circumstance that would cause you to enjoy less than 6,475 in form of tax-free allowance is something that creates an opportunity for you to apply for a tax rebate. A good example is being declared redundant during the tax year, leaving or entering the UK during the tax year, or even earning less than the tax-free allowance during the year.

If you have left your Job, you will need to have the form P45 from your previous employer with you. The P60 form on the other hand, will be given to you at the end of the tax year to show how much you have paid and the form P85/P86 will show when you left or entered the UK.

You must accompany your application with a cover letter to explain what you are seeking for. Once you are through with this, you can wait for 30 – 45 days for your tax refund.

Tax Rebate After Redundancy Thu, 19 Aug 2010 01:00:15 +0000 “You are fired” are probably the three words that the average employee dreads the most. And regardless of whether they come with plenty of apology or whether it comes in a terse two-sentence paragraph, the effect is the same: your services are no longer needed in that organization. And that is where your redundancy tax rebate comes in.

Every tax payer in the UK who earns less than £100,000 per annum is entitled to at least £6,475 in personal tax-free allowances. In order to calculate the annual monthly tax payable through the Pay As You Earn system, the annual personal allowance is evenly distributed throughout the tax-year. If you happen to lose your job during the year, it therefore means that you have some of your annual personal allowance that remains unutilized.

To know how much the taxman owes you, you need to calculate the annual tax that you were supposed to pay based on the annual personal allowance, and then subtract the taxes that you paid. The difference is what the taxman should give back to you in form of tax-rebates. If all this sounds too complicated for you, simply get to the Tax Rebate Calculator and let it do the dirt work for you.