Take the sting out of losing your job!
TaxDay find that many people who contact us do not realise that if they are made redundant (or are out of work for a certain period of time after leaving employment), they may be entitled to claim overpaid tax back.
In some cases, they may also be entitled to claiming tax relief for certain expenditure associated with their employment - past or current, which could help in reducing the amount of tax you should pay.
If you've been made redundant, whether your a British citizen or not, we can help you reclaim your overpaid income tax. This could prove a god-send to you, so it's worth checking...
How you could benefit from a tax rebate if you lost your job
Throughout employment HM Revenue & Customs deduct income tax from employees' weekly or monthly pay checks; the total amount of tax deducted clearly appears on the P45 document. In the unfortunate event that you lost your job, you could be entitled to a tax rebate if your earnings within the tax year amount to less than your personal allowance. The personal allowance is the amount that everyone in the UK is entitled to earn, tax free.
Once the tax year has ended (but not before), HMRC calculates how much tax you paid during the year, in relation to the income you earned (including any benefits you may have claimed). If it turns out that you paid tax while earning less than your tax free allowance, you may be able to claim all of your tax back! In some cases, this tax rebate could prove quite significant.
In some cases, even if your earnings exceeded your personal allowance, you might still be entitled to some tax back. This is because the amount of tax that is deducted from your pay is divided in twelve equal parts (one form every month of the year), in anticipation that you would be earning the same amount every month. Consequently, if you did lose your job partway through the year and stopped earning, you could have ended up paying too much tax throughout the year.
TaxDay can help you recover any overpaid income tax. If you have been made redundant this year, chat to one of our accountants so we can assess your situation free of charge.