Taxes, Lawyers, Business & Debt
Claiming a Tax Repayment
There are many reasons why a person would be claiming a tax repayment, and it's been estimated that approximately 33% of pay-as-you-earn employees are due to receive a tax repayment. This comes up for a variety of reasons, and the tax system is far from perfect. The revenue service doesn't check to see if they owe someone a refund, so it's up to you to determine whether or not to file a claim for tax repayment.
To find out if you are eligible for a tax repayment, consider the following:
Do your total yearly earnings fall below a personal tax allowance? If so, then you are eligible in claiming a tax repayment. If you are a construction worker, and have had taxes deducted under the CIS, you will have trade and business expenses that are claimable as a business deduction, thereby lowering your tax liability. You could be eligible to claim a tax repayment due to an inaccurate tax code. This is actually a very common mistake, because tax codes are issued in bunches, and computer-generated code numbers and human error can combine to create chaos. It's also possible to have old benefits such as a car or a health insurance policy, and to no longer possess them. If you have an old benefit on your code, check to see if you can have it removed.
If you have incurred business expenses that haven't been repaid to you, or you've been reimbursed at a lower rate than you can claim, a refund can be due to you. For instance, if a caregiver for an elderly or handicapped person has to use a car to carry out their duties, they can claim on the business portion of their operating costs, for as far back as six years. To make your claim stick, you will need some way to calculate it, and you will most likely need documentation in order to prove it, such as your pay stubs or time sheets. There are many other examples where employees are able to make a tax repayment claim, such as those who wash their own work uniforms, or have to buy their own.