How to Claim a Tax Refund or Rebate from HMRC?
Tax rebates are a relatively common occurrence, but it would be wrong to assume the money will simply land back in your back account. Here we outline the process by which HMRC will process returning you your money.
Receiving a ‘P800’ Tax Rebate Letter
The official letter informing you of money owed is known as P800. However, a P800 letter on the doormat doesn’t automatically means it’s your lucky day – the same letter is used to announce that more tax is owed!
Assuming the correspondence tells you that you’re due a tax rebate, it will stipulate the amount and also the suggested process for claiming it back. These days they are encouraging the faster, more cost-effective methods of applying online which would be through the online system here.
What if I Haven’t Been Contacted by HMRC, but I Think I’m owed a Tax Rebate?
In this scenario, you’re perfectly within your rights to contact HMRC and inform them. Adding as much supporting information as you have will strengthen your case, which would include your P60 for the end of the last tax year.
What if I’ve Stopped Working? (Form P50)
A classic reason for a rebate would be where an individual has stopped working during the previous tax year. Letting the government know about this requires form P50 which you can fill in online, or print the postal version and send it to them.
What if I’ve paid too much tax on Pension Payments?
To read HMRC’s latest guidance on tax rebates from pensions, click here. Different forms are required depending on whether it’s a private or state pension, or if you’ve taken a lump sum from either a defined benefit or defined contribution scheme.
Can I get a Tax Rebate from my life Annuity?
Since income from life annuity is taxed automatically (usually at 20%), a change in life circumstances may mean you suddenly don’t earn more than your personal allowance. In this instance, you can claim a tax rebate using form R40.
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