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!):
- Go to one of the many online rebate calculators and find out if you really are due a rebate.
- Contact your employer to find out which IRD (excuse me, now HMRC) branch is your tax office.
- 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.
- If they agree, write a very simple letter (mine consisted of 1 paragraph) saying you think you've paid too much tax.
- Post the letter and the original P60 (take a copy for your records first in case Royal Mail lose it) to your tax office.
- 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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