claiming uk tax refunds

Friday, July 14, 2006

I've spent the past 12 and a bit months living in London and as an antipodean, see ads everywhere by companies advertising that they can get you an income tax rebate. For a small fee (about 15%), they'll go through all the hassle of calculating how much should get back and, with the combined forces of 20 of the countries top lawyers, they'll wrest your hard-earned tax back off the taxman. Most of them operate a 'no-rebate, no-fee' service. This should tip you off that their effort is minimal.

I eventually worked out, once you have received your P60 at the end of the tax year you can follow these steps (and it won't cost you a cent in commission!):

  1. Go to one of the many online rebate calculators and find out if you really are due a rebate.

  2. Contact your employer to find out which IRD (excuse me, now HMRC) branch is your tax office.

  3. Contact your tax office and tell them how much you earned and how much tax you paid, and that you think you're due a rebate.

  4. If they agree, write a very simple letter (mine consisted of 1 paragraph) saying you think you've paid too much tax.

  5. Post the letter and the original P60 (take a copy for your records first in case Royal Mail lose it) to your tax office.

  6. Sit back and wait for your cheque.

If you have any earnings from self-employment that's a different matter and you'll need to complete a full return. But for most of us, that's it.

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