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.