Getting a Tax Refund From HMRC: What You Need to Know

Nothing irks anyone more than having to deal with taxes. Whether you’re employed, self-employed, run a small business or own a big company, you’re required to pay for taxes. However, you should know that Her Majesty’s Revenue and Customs or HMRC allows taxpayers to overpay since it’s much better to pay more than too little. 

But it’s also worth considering to be careful because the HMRC doesn’t want you to pay too much. Thankfully, there’s a process you can follow to refund tax for overpayments. Since it’s not an automated process, it pays to know what goes on, so you know what to do should you need to get a refund for tax overpayments. 

So before you apply for a tax refund, let’s take a deep dive into everything you need to know about getting a tax refund from the HMRC. 

When Am I Due to Get a Tax Refund from the HMRC?

If you’ve overpaid your tax, you may be eligible to get a tax refund from the HMRC. These situations include:

• You were on emergency tax code when you started a job;
• You have more than one job, and you’ve lost some of your personal allowance entitlement since your second job applies basic rate tax to your salary;
• If your takings are less than predicted in your Payment on Account amount and you paid without deduction;
• If your employers apply the wrong tax code;
• If your work expenses tax reliefs and allowances;
• You work in the construction industry scheme or CIS;

Some tax calculation circumstances affect individuals, which could lead to an overpaid return. These circumstances could be having more than one pension, leaving the country using your whole allowance, or having redundant payment to the UK government. 

How Do I Pay the Right Amount of Tax?

Nothing’s worse than knowing you’ve paid too much or paid too little; that’s why it’s crucial to know how you should compute your taxes. Computing for your taxes can be pretty straightforward. All you need to do is to list down everything you paid tax on, check how much they should be, check up on all your financial links, and calculate, so it matches HMRC’s. 

Once you add up all your taxable income, apply the right tax band and deduct your personal allowance, then finally check your tax code. If you think you’ve overpaid your taxes, it’s always a good idea to check a tax refund calculator to see how much you should get back. 

Fortunately, you can use platforms like Tax Refund Calculator to help you iron out this overpayment situation. 

The Bottom Line: Know the Steps to Take to Get Your Tax Refund With Ease

While you’re allowed to overpay your taxes, you shouldn’t pay too much; otherwise, you’ll need to apply for a tax refund. Since it’s not an automated process, it pays to know what steps you should take to know if you can apply for a refund and how much you’re supposed to get. With that being said, it’s your responsibility as a taxpayer to know how much taxes you’re supposed to pay and to continue on the process of getting a refund. 

How Can We Help You?

If you’ve overpaid your taxes, you may be due for a tax refund from the HMRC. With that being said, it’s best to apply for a tax refund right away; thankfully, we’re here to help. 

Tax Refund Calculator can help you get back that’s yours by calculating whether you’ve paid too much tax or have unused uniform allowance or marriage tax allowance. 

Check your refund today!