Working in the uk 2018 / 2019 Understanding your tax code

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Understanding your tax code & claiming a tax refund

As a UK citizen, you are entitled to tax refund for any overpaid tax regardless of the reason that might have caused you to pay more than what you should have. There can be several reasons for overpaying the tax and some of them include:

• You might have started another job and have been assigned an emergency tax code for some time. • You might have married or formed civil relationship where your spouse, civil partner or you were born prior to April 6, 1935. • Your employer might have received a wrong tax code by HM Revenue & Customs (HMRC) or the employer might have used an incorrect code. Well, these are only few of the situations under which you might have overpaid the tax and are entitled to hmrc tax refund. There can be several other situations like these as well.

What’s The Time Limit To File Your Tax Refund Application

You have four years after the concerned tax year ends to do your tax rebate preparation and actually file for a tax refund. A typical tax year starts from 6th of April and ends on 5th of April in following year. However, it is advised that you consult with an online accountant at your earliest so that you may not end up losing your right to file a claim. 

Claiming A Refund 

In order to claim your tax refund with or without a tax rebate service, go to the claim tax refund section on the UK government website and follow the steps to provide necessary information. After answering a series of questions, you will get the right guidance on what you need to do next like, maybe, filling in form R40 for claiming the tax refund against your savings interest in case your income is below £16,850. It’s just an example and appropriate advice is provided according to your own specific situation.

How To Get Your Tax Code Updated

As mentioned earlier, HMRC might assign you an emergency tax code after you change jobs. However, they’ll automatically correct it as well after you provide the current employer all necessary details about the past income or your pension. As it normally works, employers should be able to get all the necessary information from the P45 form you have filled but if you do not have one then they’d ask you to provide further information.

HMRC also updates your tax code in case:

• You have started getting income from pension or any additional job• The income has changed• You have started/stopped getting any benefits from the job• You’re receiving taxable benefits from the state• You have claimed expenses on which you’re entitled to get tax relief or a marriage allowance

Once the tax code is changed, you will receive conventional mail or an email informing you about the update made to your tax code. 

Your pension provider or employer will also be informed about the update made to your tax code. The next payslip that you’ll receive must show the newly assigned tax code and the adjustments to the pay if wrong tax amount was being paid.

For latest news and information on U.K tax returns.
visit https://telegraph.co.uk/tax/return/
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HMRC: Beware of tax rebate text message scams -https://www.bbc.co.uk/news/business-47988270