If you work and earn enough, you will have to pay income tax. It is easy for the normal working person to assume they are paying the right amount of income tax. The reality is that countless UK tax payers are overpaying income tax, which can be claimed back for the last four tax years.
We would all like to pay less tax, and this can be done legitimately by following our guide for the employed below.
Ways You Can Pay Less Income Tax…
Check your tax code
All employed people have a tax code, which is used by your employer to work out how much tax should be taken from your salary.
There are several different causes of an incorrect tax code. If your tax code is wrong you can overpay tax and be due an income tax refund.
Each time you receive a new tax code it is vital you check your tax code yourself. If a mistake has been made (and it is not picked up) you will continue to not pay the right amount of income tax, and not receive any income tax rebate you are owed.
Reclaim a tax refund on your job expenses
Claiming an income tax refund on expenses is an important way to pay less income tax. By not recovering your full entitlement you are paying more income tax than you have to. If you don’t make a claim, you will not be given the income tax rebate you are due.
An Income tax refund for expenses can be claimed for:
- Traveling costs – To travel to a temporary workplace and not normal commuting means you should be able to claim back an income tax rebate for the cost of traveling. You can claim for using your own vehicle and public transport.
- Using your own home – If you use your own home for work purposes income tax relief should be available on the cost of utilities like gas and electricity.
- Buying tools – Tax relief is available on the cost of tools bought for work purposes.
- Uniform washing – If you wear a branded works uniform and meet the cost of washing the uniform yourself a uniform tax rebate can be claimed.
- Professional fees – Income tax relief can be claimed on the cost of membership into most major professional bodies and some unions.
Other reasons why you can claim an income tax refund
There are other reasons why less income tax can be paid for people with more uncommon forms of income like:
- Pension Tax Relief – If you have a private pension and are in the higher rate tax bracket, you could be able to claim back an extra 20% tax relief.
- Leaving the UK – if you moved abroad in the last four tax years, you could qualify for an income tax rebate for the year you left.
- Non Resident – Paying UK tax and not being resident in the UK can result in a full or part refund of income tax paid in the UK.
How Do I Claim Back An Income Tax Refund?
The way in which you claim an income tax refund is specific to the type of claim being made. Tax Rebate Services’ free guides can help you choose what type of income tax rebate you can claim and how to contact HMRC to get your money back.
