Qualifying For A Paye Refund

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How can you qualify for PAYE (pay as you earn) rebate often referred to as a p60 or a p45 income tax refund? The p60 and p45 refer to the tax forms that you get from your employer the form p60 is issued at the end of the tax year. The form p45 is issued if you leave your employment before the end of the tax year.

Well it would be a very clever idea to have the form p60 or a p45 as that will show the actual income you have earned and the tax that has been deducted from that income.

The way the PAYE tax system works is that it is usually quite accurate for straightforward situations but does not handle well anything that may be slightly out of the ordinary or not the norm.

Often if you leave your job part way through the tax year then you will not have had a full years worth of personal allowances utilised against your income.

This is nearly always the case if you leave the UK before the end of the tax year so that you do not re-commence employment in the UK and even if you stay in the UK you do not have any other taxable income to use up your allowances then you will probably be due a tax refund. This could often very simply be because you may be a student and work between terms.

The other way that this often applies is for people starting employment part way through a tax year and perhaps then they have an emergency or month one code which quite often happens as employers' seem to be quite lazy in not checking if their new employee has a p45 or indeed in getting them to fill up the correct forms to get a corrected code number.

If you have been taxed on a month one or an emergency tax code and have only worked part of the tax year you probably will be able to qualify for a tax refund.

You may also qualify if a benefit has been coded into your PAYE code that you are no longer receiving such as a medical or a car benefit.

Often one may be able to claim for expenses that have not been reimbursed to you or have been reimbursed at a rate lower than that at which you can actually make a claim. This can be when you have to use a car to carry out your employment duties and either you do not receive a mileage allowance or one that is paid at a lower rate below what you can get tax relief on.

If you have been in the same job for a number of years you may be able to make a claim going back for 6 years which could generate quite a large tax refund.

You may also have equipment that you need to properly carry out your employment that you have not claimed for. This can vary from trade to trade but one to consider is that of motor mechanics where quite often they supply or buy their own tools.

In a brief article such as this one cannot cover all the scenario's that could give rise to a tax refund.

About the Author:
The Author writes many articles on Income Tax and Pension Planning and for more information please go to P45 Reclaim



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


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