Tax Rebate Advice http://tax-rebate.org Tips and Resources for a Claiming A Tax Rebate Thu, 20 Jan 2011 18:54:58 +0000 en-US hourly 1 https://wordpress.org/?v=4.7.5 Claiming a Tax Rebate When Leaving the Country http://tax-rebate.org/claiming-a-tax-rebate-when-leaving-the-country/ Tue, 05 Oct 2010 14:27:02 +0000 http://tax-rebate.org/?p=287 If you have only worked for part of the tax year you may be eligible to claim a leaving the countrytax rebate when you leave the country.  The official statistics showed that 255,000 non residents left the country in 2008, a 50 per cent increase over the previous year.

You may be eligible for a refund of some of the tax that you paid whilst working in the UK.  Many people do not know that they can often claim back any overpayment of tax that arose from only working part of the tax year.

Arriving in the Country

Everyone that works in the UK is given a tax free allowance. Your tax free allowance is the amount of income that you can earn before you are required to pay any tax. For the current tax year this allowance is £6,475 and next tax year this will increase to £7,475.  If you arrived in the UK towards the end of the tax year (April 5th) you may earn below the tax free allowance, and can therefore claim back any tax you paid from Her Majesty’s Revenue and Customs (HMRC).

Non Residents

You may be eligible for a tax refund if you become non UK resident.  However, becoming a non UK resident for tax purposes is not as straightforward as simply leaving the country.  You will only become non resident:

  • From the day after you leave the UK
  • If you have physically left the country
  • If your visits to the UK are less than 183 days in a tax year and average less than 91 days a tax year over a maximum of four consecutive years

Checks are likely to be done to establish that you have definitely left the UK.  For example, if you retain a property in the UK, HMRC might question you as to your intentions for the property if you have stated you are not planning to return to the country.

Leaving the Country

If you are leaving the UK permanently or indefinitely (leaving for a period of three years but where you have indicated that you may return in the future), you must tell HMRC by contacting the tax office that dealt with your affairs whilst you were in the UK.

You will be asked to fill in the form P85 to determine whether you are entitled to a tax refund.

Your tax office will:

  • Help you establish that you will definitely be a non resident
  • Determine whether you have to complete a UK tax return once you have left the country
  • Review your P85 form to calculate whether you are due a tax refund

Tax treatment of different sorts of income

Even if you become non UK resident, it doesn’t automatically mean that you are not liable for any tax in the UK or that you are due a tax refund.

For example, if you retain a property in the UK which generates a rental income, you will be liable for tax on this income.

However, when you leave an employed position in the UK, you are generally only liable for UK tax on your earnings up to the date that you left the job/UK.

Double Taxation Agreements

Different countries and states have their own tax rules and laws. When you receive income and gains from a source in one country and you are resident in another, you may find yourself in a position whereby you are liable to pay tax in both countries under their different tax laws.

To avoid paying tax twice in this situation, the UK has so-called ‘double taxation’ agreements (DTAs) with a large number of countries.

If you are a resident of a country with which the UK has a DTA, you are likely to be able to claim exemption or partial relief from UK tax on income from certain types of sources. The precise conditions of exemption or relief can be found in the relevant DTA.

What to do next

If you are leaving or have left the UK, you should contact your local tax office to let them know.  They will ask you to complete the P85 form to determine whether you are entitled to a tax refund.  You may have to provide documentation to them to prove your income such as P60 or P45 documents.

You should also remember that the deadline for claiming UK tax refunds is four years.  If you left the UK at anytime within the last four years, you may still be able to claim a tax refund.

]]>
Death, Taxes, and Chocolate http://tax-rebate.org/death-taxes-and-chocolate/ Tue, 05 Oct 2010 12:02:05 +0000 http://tax-rebate.org/?p=266

By Alexander Peter

This is the first film by  Dr. Andrea Levinson, a holistic practioner and former geologists turned screenwriter. The film received a number of major nominations including “best screenplay” and “best director” and has been well received by a number of film critics.

The film is an adaptation of Dr. Levinsons 2005 play and is based  on real people and true events making the story compelling for this reason alone. The film is a dark comedy with elements of a mockumentary, highlighting the US Health agencies favouritism of the drug companies.

The film is shot in New Bern North Carolina and has an original soundtrack by various local musicians including Andrea and Phil Owens, Margaret Rose, Chantal Hallatschek and Glen Kolleda.

The movie tells the story of a holistic healer (Peggy Droz) a teacher (Catherine Trail) a captain (Ken Beals) and an Ex CIA Agent , turned insurance salesman(Greg Frucci) who agree to find an alternative to growing old gracefully. This leads to ‘Operation Bon Voyage au Chocolate’ a plan to leave the world in the most decadent fashion possible: A trip on a yacht with enough chocolate to send your blood sugar level into overdrive.

The movie has a good mix of comedy, romance and drama and tackles a number of issues facing people in this modern world, similar in the way that Office Space does. However the film is just too unbelievable to be taken realistically and the corny clichés and copious amount of facts about chocolate makes the film feel like infomercial for a candy store.

There is an interesting twist at the end of the movie which may be the only thing keeping you watching. Unless you have are seriously obsessed with chocolate, you might want to give this movie a miss.


]]>
Are You Entitled to a Tax Rebate? http://tax-rebate.org/are-you-entitled-to-a-tax-rebate/ Wed, 29 Sep 2010 12:33:53 +0000 http://tax-rebate.org/?p=146 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.

]]>
Claiming A Tax Rebate As A Student http://tax-rebate.org/claiming-a-tax-rebate-as-a-student/ Mon, 23 Aug 2010 01:03:10 +0000 http://tax-rebate.org/?p=36 The fact that you are a tax-paying working student does not mean that you are automatically entitled to a tax refund. However, the unique jobs and working patterns of students are what make the student a very likely candidate for tax-refunds. There are two main factors for this:


Low Income

Since fulltime students can hardly be fulltime workers, it is pretty obvious that they will not earn much. Sometimes, this income falls short of the annual tax-free allowance of £6,475 and hence the need to refund the student all the income taxes that he might have paid through the Pay As Your Earn system.

Intermittent Employment History

Since the student’s working schedule is highly dependant upon the academic calendar, it is expected that the student will look for a job or quit from one depending on how tight his schedule will be. This means that the student is therefore not likely to stay employed for the whole period within the tax-year. Since the tax-free allowance is distributed within the year with the assumption that the person will enjoy it throughout the year, the student is due a tax refund since he would still be having unutilized tax allowance.

To claim your tax-refund as a student, you still need the forms P45 to show when you left employment and the form P60, to show how much taxes you paid during the tax year.  If you happened to have lost these forms, then you can ask for statement of earnings from your employer. Once you have all these forms, you can send then to us to help you process your application or you can send them with a cover directly to the Inland Revenue.

]]>
How Long Does A Tax Rebate Take? http://tax-rebate.org/how-long-does-a-tax-rebate-take/ Sun, 22 Aug 2010 01:02:42 +0000 http://tax-rebate.org/?p=34 This is one of those questions which people love to have specific answers for but which unfortunately, rarely have one. Although the taxman is very clear on by when you should have filed your returns and by when you should have claimed all your tax refunds, the issue of when they will pay you is pretty vague. However, claims are usually processed within 30 – 45 days. This is mainly true if you supply all the documentation that will be required.

In case you fail to provide all the proper documents within the stipulated time, you can be sure that your claim will be delayed. That is why it is always advisable that you provide all your required documents within the first claim. Such documents include the forms P45, P60, and forms P85 and P86 if applicable. The documents that you will be required to produce will depend on the reason for requesting a tax rebate.

However, sometimes you can submit all the required documents but still end up with a long duration of non-payment. If such a thing happens to you, it is advisable that you just call them to get to know what could be holding them back. The delay could probably be because a tired official at the Inland Revenue is simply dragging his feet and a call to the office may be all that is needed to get your application moving.

]]>
How To Apply For Tax Rebate http://tax-rebate.org/how-to-apply-for-tax-rebate/ Sat, 21 Aug 2010 01:01:04 +0000 http://tax-rebate.org/?p=28 There are millions of pounds in form of tax rebates that remain unclaimed every year. Many people tend to think, that if they pay their taxes as they are required to, then the taxman will help them correct every overpayment that they may have made.
Well, they are definitely wrong. If the Internal Revenue owes you some money, it is your job to find out how much they owe you and then apply for refund.

Let’s assume that you have identified the amount of money owed to you. This could be due to the fact that you worked only part of the year, or you are leaving the UK for over the six months. The first thing would be to get the forms P45 and forms P60.

The form P45 is given to you by your employer when you leave employment while the form P60 is given to you at the end of the tax year and it indicates the amount of money that you have paid as income tax for that tax-year. In case you cannot find these forms, then you should ask your employer to give you a Statement of Earnings which will be able to serve a similar purpose. You may also need to submit the form P91 which will show your work history and the forms P85/P86 for those who entered or left the UK during the tax year.

Once you have all these documents with you, you can then send them to us or you can send them to the Inland Revenue with a cover letter. Generally, you will be able to receive the check within 30 – 45 days.

]]>
How To Get A Tax Rebate http://tax-rebate.org/how-to-get-a-tax-rebate/ Fri, 20 Aug 2010 01:01:43 +0000 http://tax-rebate.org/?p=30 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 http://tax-rebate.org/tax-rebate-after-redundancy/ Thu, 19 Aug 2010 01:00:15 +0000 http://tax-rebate.org/?p=26 “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.

]]>
UK National Insurance Rebates http://tax-rebate.org/uk-national-insurance-rebates/ Tue, 17 Aug 2010 00:59:41 +0000 http://tax-rebate.org/?p=23 If you are working in the UK, you probably know that deductions are usually made from your salaries as contributions to the National Insurance. Part of these deductions is then forwarded to the state pension scheme. What you might not be aware of, is the fact that this is and you are allowed to have you funds directed to your personal pension plan (you are not allowed to take this money in form of cash.)

Since most people leaving the UK are unlikely to come and claim their pension from the state, it makes a lot of sense for them to transfer their contributions to the personal pension schemes. The good thing about personal pension plans is that you have a lot of flexibility in following them up compared to the state-run pension scheme.

Concerning the application for this transfer to take, you do not need to be making this request year in, year out. You just need to do it once and then the process will be automatic in the following years.

For a person leaving the UK, you will need to provide proof of the fact that you are planning to leave the UK for good. Once you can provide proof of this, you will then be able to get your money in cash so that you can start life somewhere else.

]]>
UK Tax Rebate Calculator http://tax-rebate.org/uk-tax-rebate-calculator/ Mon, 16 Aug 2010 00:58:52 +0000 http://tax-rebate.org/?p=21 The deadline for submitting tax returns to the taxman has come and gone, but you still have the ability to ask for tax refunds that you have been eligible for, for the past six years.


If you have never claimed your tax back within those six years, then the task awaiting you is extremely high, and that is exactly why you need a tax rebate calculator. The tax calculator works on the amount of tax that you are actually supposed to pay, in relation to the amount of taxes that you paid. If the amount of taxes that you paid is more that what you should have, either because of working only partly during the year or because you are leaving UK, the amount of tax rebate will be the difference between the two.

Making tax calculations for one year is hard by itself, and calculating tax rebates for six years is even harder. In a world of deadlines and time limits, any delay in submitting your tax refund application may mean the difference between having your money back and not having it, the importance of making the right calculations fast cannot be downplayed. It is for this reason that Taxfix has provided an online tax rebate calculator to help you out so that you can make the right calculations.

So, what are you waiting for? Start punching and get your money back.

]]>