Tips to Claim Your PAYE Tax Refunds for 2020–2021

looking at paper

Tips to Claim Your PAYE Tax Refunds for 2020–2021

Are you feeling financially short despite working every day? Then you might want to check your pay stub carefully. It may indicate that you are overpaying taxes through being on an emergency tax code.

If you think you’re owed a tax refund, here are a few things to consider before filing:

What is PAYE?

Pay As You Earn is a tax code given to employees by Her Majesty’s Revenue & Customs (HMRC) so that their employers can deduct tax from them. The tax office calculates the tax paid by employees based on their income. Employees have to fill out a form called a P60 at the end of the year to make sure they have paid their taxes correctly.

The government collects PAYE tax from an employee’s wages or other income. The tax code given at employment determines how much tax an employee needs to pay. Income tax is deducted straight away from the net amount of money received before the employee has a chance to handle it.

How to Claim Tax Refunds

If too much tax was docked from your pay, your annual tax credits might be higher than you paid in income tax during the year. Also, how you claim tax refunds depend on what year you overpaid PAYE. A typical tax year runs from April 6 to April 5 the following year, so make sure your employment is within those dates for the work you believe you were overtaxed on.

The great thing about applying for overpaid tax back is that you can claim refunds as far back as the 2017–2018 tax season.

To start, you must file your tax return with HMRC by October 5 or register to send a self-assessment return online.

If you filed or registered before January, and your employer withheld too much tax from your pay, they should have given you a form P800(A). This indicates that your employer should refund you when you file your tax return by October 5. If you have not yet received a P800, we will write to you as soon as possible.

But, if you have an earlier year’s P800 and it says you’re owed more than £300, then carry on reading this message.

How to Claim Tax Refunds Online

Claiming your PAYE tax refund online contains more steps since you’ll need your employer’s PAYE reference number. This is found on your P60 and any details on your taxable benefits and income.

You Need a P60 to Claim Tax Refunds

Tax agents let you file your tax return and claim your tax refund, saving you time and effort to do it yourself. If six months go by and you have not received your tax refund, a tax agent can file an investigation on your behalf. Tax agents help you get back your money when there has been a mistake or an error. If you don’t have your tax refund after six months, a tax agent can file an investigation on your behalf. A good tax agent will return your call within 24 hours.

A tax agent should be up-to-date on the latest changes to UK tax laws and will prepare and file your tax return under these changes. A UK tax agent can also help you get your tax refund if you are owed any. UK taxpayers can file their annual income tax return online for free but will need to pay for the services of a tax agent to file a VAT claim or make a National Insurance claim.

In Conclusion

There are cases where the government owes you money instead of doing so through your taxes. These tips should help you determine which applies to you and how you can claim tax refunds that are rightfully yours. 

Claim tax refunds with our Calculator to regain what is rightfully yours. By calculating whether you have overpaid tax due to unused uniform allowance or marriage tax allowance, you might be surprised with a reimbursement from HMRC! Visit our website and find out more!