We file income tax returns every year but many of us aren’t aware that we could be overpaying taxes. Even the HMRC may not know the excess amount collected. This is because there are relief claims that apply to certain items. Many of these work-related expenses have to be manually claimed.
When you are paying more tax than your actual tax liability, you are eligible for a tax refund/ rebate. You can initiate a tax refund after submitting your tax returns for the year. Check if you are paying more income tax than necessary.
Common situations where people are eligible for tax refund:
Tools and equipment expenses:
A lot of jobs like mechanics, bricklayers, hairdressers, etc. require the use of tools, and often the tools aren’t paid for by the employers. Any mechanic or construction-worker is eligible to claim a tax refund for their tools if:
- You paid for your tools
- Your employer hasn’t reimbursed the cost spent on tools
You can claim for Tools tax refund with the help of leading accounting services like Tax Rebate Services. Their experienced accountants have helped more than 20,000 UK citizens claim the tax amount they are due. You can either claim a refund of £120 through flat-rate expenses or if you spent more than £120 you can use the receipts as proof to claim about 20% of the purchased amount.
Maintaining work clothing:
HMRC recognizes that purchasing and maintaining work clothing involves a substantial amount of money. The department has specified different refund rates for work clothing depending on the profession, which varies between £ 200 and £1000.
Some professions require traveling between places for work or visiting client places, which may not be paid for by the employer. Employees can claim back refunds on mileage costs. HRC has fixed flat rates for mileage costs that include costs for fuel, servicing, MOT, insurance, etc.
Personal Protective Equipment (PPE):
Certain professions like civil engineering, scaffolding require the use of PPE. If the employer hasn’t paid for it, you can claim a refund for the same.
Incorrect PAYE codes:
Due to human error, the PAYE codes could get mixed up, and your income tax could end up being miscalculated. Certain personal allowances would get missed out resulting in irregularities.
Change of employment:
When you switch jobs, your former employer issues a P45, which is collected by the new employer. If the employee has a few days or weeks times before being admitted into the new position, you can claim back the amount calculated during this period.
Professional workers may spend more on training to hone their skills which comes with expenses including:
- Trade memberships
- Tax Purposes Police Federation for Policeman
- Gas safe register subscription costs
- SIA license fees in case of security officers
When employers travel to other locations for work-related reasons, they may have to stay overnight somewhere. Generally, the employers are required to reimburse the accommodation costs, but if that’s not the case, you can claim a tax refund.
Tax rebates apply to several situations. Make sure you aren’t overpaying income tax.