Claiming Back Income Tax

What do I do if I think I'm paying too much tax?

It's very important to check your tax position each year. The "pay as you owe" system is intended to deduct the right amount of tax from wages and salaries paid by employers to employees. The system is usually pretty accurate, but not quite spot on. So it's always worth at the end of the year having a look at the form P-60, which your employer will give you, to make sure that the tax and the allowances in the "pay as you owe" code seem about right. If they're not, then you need to claim tax back from HM Revenue and Customs. If you look at the tax return which has to be completed by some people in the UK, there are boxes to tick if you want to claim tax back. You must tick those to get the tax repayment. If you don't claim the repayment of tax, HM Revenues and Customs will generally hang onto the money and only refund it to you by setting it against tax payments which are due later on.

Can I claim back tax?

You can claim back tax from agent revenue in customs if you've overpaid tax. You may overpay tax, because if you're employed the pay of your own system hasn't worked properly and too much tax has been deducted by your employer. If you're self-employed you might have made payments on account this year based on last year's profits. If your profits had suffered a bit of a drop, then those payments on account may be too high. Again, you can go to the revenue and ask for a refund after the end of the tax year. For the self-employed whose income drops, it's better to try to have payments on accounts, in particularly the 31st of July tax payment reduced. That gives effective tax relief much earlier on.

Who do I contact if there's a problem with my tax?

If you were an employee A, the first person to contact would usually be the payroll department in the company. Just check whether there is any issue with pay zone. If the tax problem relates to something outside the pay zone system, then contact your tax office using the reference number that you get on your pay slip.