Millions of Pounds of tax go unclaimed in the UK every year, mostly due to people misunderstanding the tax refund process. Here are the five most common reasons why people, year on year, fail to claim their tax back.
- “I’m probably not eligible”
Many people mistakenly assume they’re not eligible for a tax refund, which might explain why there are millions of Pounds in the UK unclaimed every year. An estimated one in three people are due a refund; if you’ve lived and worked in the UK in the last four years, chances are you’re one of them.
- “It’s too much effort”
Whether you apply for a refund through HMRC or a reputable ‘no refund-no fee’ agency, it really needn’t take up much of your time or energy. Your current and previous employers are required by law to give you the necessary paperwork, including your P60 and P45 forms. Once you have these, along with details of your employers in the past four years, applying is easy.
- “I missed the deadline”
It’s a common misconception that you can claim only for the previous tax year. It’s an even more common misconception that if you missed the year’s deadline, you aren’t due a thing. The truth is, you claim for up to four years.
- “Refunds are for expats and foreigners”
Foreigners working in the UK are highly likely to receive a refund, but no more so than UK citizens. There are many reasons you may be eligible, including having worked on the wrong tax code, leaving a job before the end of the tax year, or working on an emergency tax code.
- “I’ve already left the UK”
If you lived and worked in the UK and left sometime in the last four years, you’re probably due a refund on the tax you paid while you were in the UK. Having left the UK does not affect your eligibility in any way, and you can claim just as easily as if you were still in the UK.
If you would like to check whether you might be eligible for a tax refund, head over to 1st Contact Tax Refunds. We can help you locate the necessary paperwork, apply for your tax refund, liaise with HMRC on your behalf, and ensure you receive your refund in the shortest time possible.