Though its been said there are only two things guaranteed in life – death, and taxes – those in for a rebate following their work periods in the UK are often pleasantly surprised that some extra money in the bank may be a third guarantee.
Jennifer Welzel a tax refund manager at 1st Contact notes that many working professionals find extra money available to pay off debts, take a holiday or even invest.
“In the current financial climate, the chance to pay off some debt seems to be the most popular option for those receiving their tax refunds,” she notes
Research by 1st Contact indicates that most people do not claim the money owed to them as they assume their employer has been calculating their tax expenses correctly. However, according to Welzel “there are so many factors in calculating taxes that need to be taken into account and most employers don’t always have enough of a grasp of their employees tax situations to ensure their employees don’t overpay”.
Although theoretically it is possible that anyone could be eligible for a tax refund, certain groups of working professionals are often more likely than others to have been overtaxed. “People who have worked more than one job, or for only part of the tax year, generally have a higher likelihood of being eligible,” Welzel illustrates.
So how exactly can one see if they are eligible? “It’s a simple process and it really costs nothing to check. You can call a sales representative at 1stContact who will run through all your employment information for the tax year to determine if you are eligible for that extra bit of cash”.
Welzel notes that the extra pounds can be transferred anywhere in the world. “Once you have left the UK you can claim the money through 1stContact. The average tax refund is generally around £850 pounds.”
Four to ten weeks is realistically the time one will wait for a refund. To date Welzel records the highest amount paid standing at £18 000 pounds for an individual who had been working in the UK for five or six tax years. “It was certainly by far the biggest rebate, with our client absolutely over the moon”.
It’s clear that working with thousands of people eligible for tax refunds has its share of benefits. “We’ve had clients who have sent us chocolates and flowers in celebration,” she laughs, “as well as offers for dinner and drinks.
1st Contact only charges on the money their clients get back. “We take a minimum of £50 pounds and it’s usually 16-18 percent of the refund”, says Welzel.