Things You Need to Know About UK Tax Rebates


Why You Might Be Due a Tax Rebate

If you are a Tax payer in the UK, then there are many reasons why could be due a Tax rebate. The problem is that HMRC (the Tax office) can only deduct estimated Tax through the year. If you have additional reliefs or expenses, they won’t know about this fact, and the Tax refund wouldn’t have effect automatically.

This article will discuss general reasons why Tax overpayments occur, and when you might be due one. Claims can be made directly to HMRC in writing or you could use the services of a third party such as QuickRebates.

Incorrect PAYE code in operation

The PAYE code is used to deduct Tax from your wages through the year. If your PAYE code is incorrect, this could mean too much, or too little Tax has been taken through the year. If you have overpaid, you will need to make a direct claim with HMRC.

Uniform and Flat Rate Expense Allowances

If you use your own uniform for work, then you could be due a Uniform Tax Rebate. This can be applied to your PAYE code and given to you through the year. If you have suffered this expense but it has not been included in your PAYE code, this is something you can make a Tax rebate claim for.

Unclaimed Expenses

Sometimes when you are working for an employer, you might have to pay for various expenses which are not reimbursed. The common forms of expenses are:

  • Travelling to temporary workplaces
  • Purchasing tools and equipment necessary for your trade
  • Professional trade subscription costs
  • Any other expenses necessary for your employment

Working in Construction as a Subcontractor

In these circumstances you would usually be employed as self-employed but Tax would be deducted from your wages and kept to one side at HMRC. You will then be able to claim this back following the end of the year on your Tax return.

Incorrectly Calculated Wages

Mistakes happen, particularly with Tax and NI deductions. You might find that your employer has incorrectly deducted Tax causing an overpayment to arise. You may have to check the calculations by using a Tax rebate calculator.

How to Claim the Tax Rebate

Claims should be made in writing to HMRC stating the years you a making a claim for, the type of relief you are claiming, and how much you are seeking. Should the claim be accepted, HMRC would typically issue the Tax rebate in around 30 days. This can be longer during busier times such as January and April.

HMRC may request for more information, such as copies of invoices or receipts. It’s therefore a good idea to have these ready should any queries arise.

How Many Years Can You Claim For?

Claims can typically go back for four Tax years. At the time of writing this would mean that you can go make a claim for the following Tax years:

  • 2017/18
  • 2016/17
  • 2015/16
  • 2014/15