Income Tax Tends To Be Taxing

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Income tax does not need to be taxing but it often is !!!

But it is taxing of course full of unbelievable goobley gook and red tape.

Well the actor that used to say that has decided that it is and he no longer features in any adverts.

All income is taxable and you must register for Vat if your turnover is above £67,000 per annum. This includes any type of business even those that might not be legal.

Many people who are employed on PAYE are often are due an income tax refund.

The reason is that PAYE is a very clever and a simple system that collects the majority of income tax and national insurance from employees as their employers simply deduct it from their wages and then pay it over monthly to the Inland Revenue monthly. For many of UK income tax payers it works very well.

How ever in taxing many millions of people in this way it cannot be completely flexible to be able to identify each and every ones varying circumstances or those that may not be the norm.

One of the most common reason as to why an over payment is due is that you are due a full years free pay allowance ,even if you have not worked a full year.

So if you have left the UK say halfway through a tax year you will on PAYE only have been given half of the free pay allowance that you would normally be entitled to. So you would be entitled to a tax refund.

So when you leave the UK and your PAYE employment other than at the end of the tax year you will probably be due a tax refund.

Equally if you joined half way through the tax year and were taxed on a month 1 coding often known as an emergency code you would only have been given 1/12 of the annual tax free allowance for each month that you worked. So in this example you would be entitled to half of the personal allowance being offset against your income. This can create a very nice refund.

This would be correct if you had been in full time employment in the UK but if not you could be due a tax refund.

Often when coming back to the UK people often seem to be taxed on a month 1 basis even when they have briefly claimed job seekers allowance and handed the job seekers allowance to the new employer.

Often when people come to the UK and then leave the UK they may be due a refund for both tax years if their employment or employments? covered say two tax years.

As Tax is very complex it is a good idea to use a Tax Agent to help you reclaim what you are entitled.

About the Author:
The Author writes many articles on Income Tax and Tax Planning for more information please go to UK Tax Refunds



Article Originally Published On: http://www.articlesnatch.com


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