Is HMRC holding money that belongs to you?
Have you ever wondered whether the taxman owes you money? Surprisingly, many people overpay tax without realising. Therefore, it pays to check your tax position regularly and claim back what you are owed.
Why overpayments happen
Overpayments can occur for many reasons throughout the year. For example, your circumstances may have changed recently. Alternatively, you may have missed out on claiming eligible expenses.
Common reasons include:
- Changes in your employment status
- Paying tax under the wrong tax code
- Missing eligible work-related expenses
- Errors on a self-assessment tax return
- Redundancy payments taxed incorrectly
Consequently, checking your position each year is well worth the effort.
Who can claim a refund?
You may be able to claim a refund in several situations. Firstly, you may have overpaid tax on income from a job. Secondly, you might qualify if you paid for job-related expenses yourself.
These expenses often include:
- Working from home costs
- Fuel used for business travel
- Work clothing or uniforms
- Tools needed for your role
In addition, refunds may apply to pension income, self-assessment overpayments or redundancy payments.
Other situations where refunds apply
Is HMRC holding money that belongs to you from other sources? Quite possibly. For instance, you might reclaim tax on UK income earned while living abroad. Similarly, refunds may apply to:
- Interest from savings accounts
- Payment protection insurance (PPI) payouts
- Income from a life or pension annuity
- Foreign income taxed in the UK
- UK income earned before leaving the UK
How to check and claim
Fortunately, HMRC offers a simple online service to help you check your eligibility. Visit www.gov.uk/claim-tax-refund/y to get started. From there, you can often submit your claim directly online.
Moreover, if you have already made a claim, HMRC’s guidance shows expected response times. Therefore, you can track progress with ease.
Get in touch
Is HMRC holding money that belongs to you? Do not leave it unclaimed. Contact our team today for friendly, expert advice on checking your tax position and claiming any refunds due. We will help you recover what is rightfully yours.
