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Free tax guide: Understanding tax rebates

A tax rebate is paid back to you by HM Revenue & Customs when you have overpaid on your taxes. This amount is calculated when you complete an online or paper tax return.




Find out what a tax rebate is and how it affects you

To get a tax rebate, you must tell HM Revenue & Customs (HMRC) about your income and capital gains, as well as specify any tax allowances or reliefs that are due to you.

On this page you can find out about:

  • Claiming tax back
  • Tax return deadlines
  • Why you might have overpaid on your tax
  • Getting a tax rebate after leaving the UK
  • Who needs to complete a Self Assessment tax return

Claiming tax back

Anyone who has lived and worked in the UK may be eligible to make a tax-back claim.

A tax rebate is a repayment of PAYE (Pay As You Earn) tax that you have overpaid during the tax year, according to HMRC guidelines.

PAYE is the system HMRC uses to collect Income Tax and National Insurance contributions (NICs) from employees. Tax and NICs are deducted throughout the tax year based on the employees' earnings.

A tax rebate can be claimed after each tax year. The tax year starts on 6 April and ends on 5 April the following year.

You may claim a tax rebate for up to five years if you have not claimed before.

Tax return deadlines

If you send in a paper tax return, it needs to be submitted to HMRC by midnight on 31 October.

If you complete an online tax return, it must be submitted to HMRC by midnight on 31 January.

You'll be charged a penalty if your tax return is not received before the deadline.

Let us deal with the hassle of completing your tax return so you don’t have to. All you need to send us are your invoices and any receipts for expenses you want to claim that are job related.

Why would you have overpaid tax?

You may have paid too much tax in a tax year if:

  • You had more than one job
  • You did not work a full tax year
  • You were on the incorrect tax code

Tax in the UK gets calculated with the assumption that you're going to be employed for the total duration of a tax year. The more you earn, the more tax you pay. If you did not work for a complete tax year, you probably paid too much tax.

Get a tax rebate after leaving the UK

You can still claim a tax rebate for the current tax year if you're:

  • Leaving the UK (or you've already left the UK)
  • Not planning to return to work in the UK before the end of the tax year

You can also claim a tax rebate for ANY tax year going back up to four years if:

  • You’re leaving the UK (or you’ve already left)
  • You’ve already left your last job in the UK

Just make sure you get your P60 before you go.

Who needs to complete a Self Assessment tax return?

Not everyone needs to complete a tax return. If your tax affairs are straightforward, you may already pay all of the tax due on your earnings or pensions through your PAYE (Pay As You Earn) tax code.

Dealing with your Self Assessment tax claim can be an extremely stressful experience. If you don’t take all of the necessary factors into consideration, you could make an expensive mistake.

The following is a list of some of the individuals who are required to complete a Self Assessment:

  • Self-employed individuals
  • Company directors
  • Those who earn £100,000, or more, in a year
  • Individuals who receive taxable income from abroad while living in the UK
  • Trustees of registered pension schemes or trusts
  • Those who received £2,500 or more in untaxed income; including renting out a property or earning interest on investments or savings

When filling in your return you will be asked for details about profits from your business (if relevant) and any other income on which you must pay tax. You can increase your tax rebate by claiming for expenses such as tools, clothing, meals and travel.

For more details on Self Assessment give us a call on +44 808 141 5503 or visit this website.

We have some exciting news
for all our 1st Contact clients...

1st Contact is rebranding to Sable International!

For the last 18 months we've been merging with our big brother, Sable International. By the end of the year, we're going to complete the rebrand.

The accountants, brokers, advisors and caseworkers that you are used to dealing with will not be going anywhere as the entire 1st Contact team will be in the same roles at Sable International. You'll still get that same great service, just under a new name.

We'll be keeping you in the loop as we prepare for the next exciting phase in this rebranding.

If you have any questions, please feel free to contact us directly.

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