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How to Claim a Tax Refund For The Previous Tax Year

Haven’t received your tax refund yet? Are you worried you will no longer receive it since the tax year is over? Bette stop worrying coz it’s never too late!

I wasn’t able to claim my refund for the precious tax year, what should I do?

First things first, if you have over paid in your taxes but didn’t receive a refund after the tax year is over for some reasons, you can still claim it. First step is to verify that you indeed have overpaid taxes in the previous year/years. Once sure, you may directly write to HMRC requesting for a tax refund. Or you contact the directly using this HMRC phone number. You can send it to them using several ways; you can either use their address on the website, or use your current employer’s tax address. Upon receipt, they will initiate an investigation pertaining to your claim. They will have to verify the information you have given. It is therefore necessary to provide them all necessary and correct information. Once they see that you have provided incorrect or false information, they may forfeit the refund of your overpaid taxes and this may even result to criminal charges.

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How long will it take HMRC to process my tax refund?

It usually takes several weeks for the processing since there are a lot of verification and checking that needs to be done. But rest assured that once your claim has been proven true and the investigation results’ had materialized, they will immediately process your tax refund. They will either deposit or transfer it to the latest bank account you have used to pay your taxes or directly transfer it to your bank account. Do not forget to include on your letter how and where would you want it to be credited. That is critical information as I’m pretty sure you do not want it deposited to the incorrect account. Also, it is advisable to use your own bank account for the refund since it makes the process easier on both parties.

How do I write the letter?

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The letter is basically a formal business letter. Make sure to include all necessary information on the letter for it to be entertained. It is also wise to keep it as short and simple as possible without neglecting any important information. For the format or for some sample letter you may always search online. The format, some samples, and even templates to follow are available.

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The P800 Tax Calculation

 

If you are currently employed in the United Kingdom then you might have heard of the 800 tax calculation. If not then let us give you a bit of a background.

What is it?

P800 tax calculation is basically the computation of the taxes that you have paid. Your employer forwards all your tax details to Her Majesty’s Revenue & Customs or more widely known as HMRC. This information includes all the salary you had during the tax year as well as the amount of tax you paid. This will be used as a guideline as to whether you have paid your taxes correctly.

The big Tax Day, the 15th, is circled on a white calendar with a red marker

What if there is a Discrepancy?

Now, do not worry about discrepancies and stuff, HMRC will take care of all those things. You do not have to do anything; just wait for them to reach out to you.  In any case that you have underpaid taxes, you shall be receiving a letter from them explaining why it happened and the amount that you have yet to pay. However, if they have confirmed you have overpaid taxes, then it’s your lucky day! They will automatically send you a refund of the overpayment. On the other hand, if you haven’t hear from them then most probably you have paid just enough in taxes.

What if my Address Changed?

It is always beneficial to make sure your contact information, like your mailing address and contact number, are up to date. If you have moved or have not yet updated your contact information, and you think you have overpaid in taxes then better do so. That will be the perfect time to get in touch with HMRC. After all, who wouldn’t want a refund, especially since you have worked hard for your wages? Or even so, who doesn’t want any extra money right? You can basically use it for your shopping needs or a dinner at your favorite restaurant!

P800 tax calculation is a mandatory calculation by HMRC so long as you are employed. On purpose, your employer is also mandated by law to submit all the necessary paper work regarding their employees’ taxes. They are therefore obligated to provide true and accurate information as well. Not doing so could and will result to violation of the law and may entail necessary legal actions.

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If you have any doubts that your employer is not submitting your tax information correctly, then feel free to inquire from your accounting department. Or you may also get in touch with HMRC for them to initiate an investigation.

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Details on How to Claim a Tax Refund For The Current Tax Year

A lot of people gets excited during the tax season since numerous employees receives refunds for overly paid taxes. Well in case you’re wondering why that happens, there could be several possible reasons. One is that, there had been a human error in the calculations of your taxes. It is possible that the person in charge of the calculation had committed an error of some kind. Another reason is that, your income might be fluctuating, so setting a fixed amount of tax would be quite difficult. This could result to an under payment or over payment of taxes. Of course, we are pretty sure that you would prefer the latter one! Lastly, you might have been paying your taxes through the PAYE system which at times collects too much tax.

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What Should I Do?

Actually, you do not have to do anything for 90% of the cases. Your employer actually forwards all your tax information to Her Majesty’s Revenue and Customs (HMRC). This sector is responsible in your P800 Tax Calculation, or in lay mans term, the calculation of your exact taxes for the current tax year. In case they computed and have seen that you have not paid enough taxes, they will immediately get in touch with you to collect the underpayment. But if you’re lucky enough and they calculated that you have overpaid your taxes then they will automatically send you the refund.

In case that you think you have over paid your taxes and you have proof, then you may get in touch with HMRC and tell them your situation. You have to be very careful to take note of the details regarding your call as this will be your reference until your concern has been addressed properly. However, you have to make sure that you report to them before the end of the tax year so they would have enough time to look into it, otherwise your claim will be void. If they have finished their investigation and saw that you really have over paid your taxes, they will automatically issue you a refund. This will be for all the extra taxes you have paid within the current tax year. They will also guarantee that they will make all necessary changes to your tax code to help prevent any over payment of taxes in the next years.

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We know that every penny counts, so if you think there’s something wrong with your taxes, don’t hesitate to seek help from authorities.