When will I get my Tax Rebate?
3rd February 2017
A Tax Rebate is a refund of tax due because you have paid too much tax (More often known as a refund in the real world!) It’s sometimes tricky to work out if you are due one and how and when you might get it, as the payment isn’t always immediate. Here’s a quick lowdown on what to expect with tax rebates.
UPDATED VERSION FOR 2019/2020 AVAILABLE AT https://www.ttrbarnes.com/when-will-i-get-my-tax-rebate-2019-20/
Who can get a Tax Rebate?
- If you are employed and had too much tax taken from your pay
- If you have stopped working have not used all of your personal allowance or tax bands
- If you have paid too much tax on your self-assessment tax return
- If you have paid too much tax on your pension income
You may also be able to reclaim the tax you’ve paid on savings interest if you’re on a low income or if you live in one country and have income in another.
How can I claim my money back?
If you have done the sums and you think you are due a tax rebate, you will have to go through the processes of applying for your money back. Sometimes overpayments will be picked up by HMRC automatically – but you shouldn’t wait around for anyone else to check if you’re due money in our opinion!
The process will vary depending on the reasons that you are due a tax rebate. There are various forms to fill in as well – each of them different depending on your circumstances (it’s always harder getting your money back!)
| Your Circumstances | Your Process |
| Employed and paid too much tax | If you’ve had an incorrect tax code, you or your employer will need to inform HMRC. Your rebate will be paid directly through your pay with your current employer. If your claim is for a previous tax year, HMRC will normally pick this up for you shortly after the end of the tax year and send a P800 calculation and a cheque. If you think you’re due one and don’t receive it however, just contact HMRC yourself. You can claim online or in writing or via telephone. To claim online you will need your employer’s PAYE ref. no, details of all taxable income and benefits and an account with gov.uk Verify. To claim offline, you will need your NI no, details of your job and your P45/P60. |
| Stopped working and paid too much tax | If you were made redundant and paid too much tax because of your redundancy payment, you must contact HMRC as soon as possible and explain the circumstances.
If you have left your job and paid over the threshold already, aren’t claiming benefits, and expect to be out of work for over 4 weeks, you will need to use a P50 form to apply for a tax rebate. |
| Self-employed and paid too much tax | If you paid online, you will need to log in to your online HMRC account. You should choose “Request a payment” from the “self assessment overview” section and follow the instructions.
If you did a paper return, you will normally get your money back from HMRC automatically but, if you don’t, you will need to contact them by telephone or in writing – referencing your UTR code. Make sure you include your bank details at this point too – it makes things faster! |
| Paid too much tax on your pension | For private pensions, your pension provider may pay you back automatically or HMRC may send you a P800 tax calculation.
Depending on other circumstances, you may be required to fill in a P50, P53, P50Z, P53Z or P55 form. See here for more info. http://bit.ly/1PwUGk6 |
| Bought a life annuity | Call HMRC Retirement Annuity Helpline
Telephone: 0300 200 3302 Calling from abroad: +44 (0)151 471 8436 Monday to Friday, 8am to 8pm Saturday, 8am to 4pm Fill in form R86, R89 or R40, depending on circumstances |
How long will it take to get my money?
Okay, this is where things may vary a little. Current advice from HMRC is as follows:
“HM Revenue and Customs (HMRC) will usually send repayments within 5 weeks, but it may take longer in some cases.
You should wait 5 weeks after making an online claim and 6 weeks after making a postal claim before contacting HMRC about the payment.”
Depending on who you talk to and their personal experience, the real answer to this can be anything from weeks to years! There are some factors that can impact the time it takes.
Size Matters
It does sometimes depend on how much you are due back. If it is less than £1000 then it is usually paid without fuss. However, anything more and this may trigger a more detailed enquiry and what is known as a “security check”. This can obviously add to the time required to analyse the rebate request.
Information matters
Our number one piece of advice is to check, check and triple check that you have sent all of the information required as part of your tax rebate. If you are missing any details or documents then this will just delay your application – so make sure all of those P45s, bank details and forms are in order!
How will I receive my money?
Depending on how you applied and your particular circumstances, HMRC will either pay your rebate directly into your account or send you a cheque. If they require more information then they will contact you directly and there is always the chance that they will reply to you to say that you are not due anything back at all!
We can help with your tax rebates
As a fully-qualified chartered accountancy firm, we are authorised to act on behalf of companies and individuals to file their tax returns and make claims on tax overpayments. We can analyse your accounts and help you understand if you are due a tax rebate, before liaising with HMRC on your behalf to get your money back. As always, we love to help people with their tax problems here at TTR Barnes. Do not hesitate to get in contact with us, as this is where we excel.
We can even help with one-off claims. A popular service we provide in order to get tax back is an ‘overpayment relief claim’ for higher rate taxpayers that have made private pension contributions and have not claimed the higher rate tax relief.
CONTACT
Tax and Payroll Manager vikki.ashton@ttrbarnes.com 0191 567 0304
