The government has millions owed to people like you
http://www.accountingfacts.net/articles/7534/1/The-government-has-millions-owed-to-people-like-you/Page1.html
Nikki Van Coller
Nikki writes for www.taxrefunds.co.uk - a online tax refunds agency. The site enables UK residents to get their excess tax back. By Nikki Van Coller
Published on 07/22/2010
The HMRC's admission to over calculating taxes has resulted in very large amounts of money owed to normal UK citizens.
The government has millions owed to people like you
You may be set for a tax refund, , without even knowing it. According to the CIT (Charted Institute of Taxation), HM Revenue & Customs has sent the wrong tax codes to a number of people, throughout the UK, due to a fault within their IT systems.
The HMRC database reportedly lost information it held concerning tax-payers who had left their jobs.
As a result, it combined current employment records with old data, concluding that those currently holding one job are actually earning in the region of two incomes . The result: many tax payers have been incorrectly placed in higher earning brackets and have paid more tax than they ever should have.
Experts stress the massive importance of checking if one is eligible for a tax refund, since numerous tax payers are unaware of the fact that they are being overcharged and have earned the right to a fair tax rebate.
It is advisable for individuals to check their tax codes. Look on a 'PAYE Coding Notice' - this notice tells you what your tax code is. It is usually sent out in January or February each year. If you are, indeed, on the wrong tax code and due for one of the numerous tax refunds, contact your tax office straight away.
Find an online tax refund calculator to do a calculation and see where your current obligation stands. These calculators ask you for three things, typically. Firstly, it would ask you for your income amount, over the past twelve months. Then you need to select, from the drop down, the year for which you will be applying to get your overpaid tax back.
Tax years, in the UK, run from April to April. Therefore, when you select your year, it would be two years back to back. For example, 2004-2005 or 2007-2008. According to law , one can only claim tax for the past 5 tax years.
In general, there are two options; either you can go directly through the Inland Revenue or a tax refunds agent. The advantage of the Inland Revenue would be that you save on a small fee, which the agents would ask.
In turn, the advantages of the agents are that they take care of the administration and they work with the IR to sort your details out while you relax. The agencies also have a direct and prioritised line to the Inland Revenue and get things done much faster than an individual.
Getting your tax refund can be a great way of getting some extra cash. Use an online calculator and get claiming!
The HMRC database reportedly lost information it held concerning tax-payers who had left their jobs.
As a result, it combined current employment records with old data, concluding that those currently holding one job are actually earning in the region of two incomes . The result: many tax payers have been incorrectly placed in higher earning brackets and have paid more tax than they ever should have.
Experts stress the massive importance of checking if one is eligible for a tax refund, since numerous tax payers are unaware of the fact that they are being overcharged and have earned the right to a fair tax rebate.
It is advisable for individuals to check their tax codes. Look on a 'PAYE Coding Notice' - this notice tells you what your tax code is. It is usually sent out in January or February each year. If you are, indeed, on the wrong tax code and due for one of the numerous tax refunds, contact your tax office straight away.
Find an online tax refund calculator to do a calculation and see where your current obligation stands. These calculators ask you for three things, typically. Firstly, it would ask you for your income amount, over the past twelve months. Then you need to select, from the drop down, the year for which you will be applying to get your overpaid tax back.
Tax years, in the UK, run from April to April. Therefore, when you select your year, it would be two years back to back. For example, 2004-2005 or 2007-2008. According to law , one can only claim tax for the past 5 tax years.
In general, there are two options; either you can go directly through the Inland Revenue or a tax refunds agent. The advantage of the Inland Revenue would be that you save on a small fee, which the agents would ask.
In turn, the advantages of the agents are that they take care of the administration and they work with the IR to sort your details out while you relax. The agencies also have a direct and prioritised line to the Inland Revenue and get things done much faster than an individual.
Getting your tax refund can be a great way of getting some extra cash. Use an online calculator and get claiming!