Tax Rebates FAQ's
A tax rebate is your entitlement to a refund of any overpaid tax during the financial year, as determined by HM Revenue & Customs.
- If your earnings during the financial year were less than the tax threshold
- If you leave employment before the end of the financial year
- If you have been taxed at the wrong tax code or assessed for Emergency Tax
- If you work in the Construction Industry and been assed for taxation under the Construction Industry Scheme (CIS)
Simply click on rebate calculator and enter the tax year for which you are claiming.
The financial year, otherwise known as the tax year, runs from 6th April to 5th April in the following year.
Either at the end of the financial year for the year just passed or when you leave the UK if you do not intend to return to employment before the end of the current tax year.
This will depend on your earnings and the amount of tax paid. If your earnings during the year were less than the tax threshold you are entitled to a full refund of tax paid. If your earnings exceed the tax threshold you may still be entitled to a refund depending on the time in employment, your tax code and the amount of tax paid.
You can claim as far back as 6 years and as most people are not required to make statutory returns there are no late penalties.
We calculate your tax liability for the year based on the income you have earned and the tax rates and earnings limits set by the Inland Revenue. If the actual tax you have paid is greater than the amount we calculate you can reclaim the difference.
The standard tax code for the financial year 2009/2010 (assuming you receive no employment benefits) is 647L indicating that your personal allowance of £6475 has been allocated to you.
When you start work your employer will tax you on an emergency code and it is often a lengthy process to rectify this. Common emergency tax codes have a suffix or prefix of BR, X, WK1, MTH1.
A National Insurance number is a reference number that HM Revenue & Customs issues to you to record where you have worked and your earnings. You are obligated by law to obtain a permanent NI Number at the commencement of employment. A permanent NI Number will ensure that your claim is dealt with efficiently. A refund can be processed using a temporary NI Number, although your claim may be subject to delays.
- A P45 is a certificate of your income indicating how much you earned and how much tax you paid on those earnings. It is a blue, three-page form, which your employer will issue to you at the end of each employment. The top page (Part 1A) is to be retained by you for when you want to claim your tax back. The second and third pages are to be handed to the next employer.
- A P60 is a certificate of income issued by your employer to you at the end of the financial year indicating how much you have earned and how much tax you paid on those earnings.
- A CIS (Construction Industry Scheme) Statement is a certificate of pay showing your income and tax paid on those earnings. Those working in the construction industry are issued with a CIS Statement at the end of each month and at the end of the contract.
A Self-Assessment requires you to declare your earnings and tax paid for a financial year on a SA100, which is issued by HM Revenue & Customs. You are required to make a self-assessment if you fall into one of the following categories:
- You are the director of a limited company.
- You are self-employed.
- You are employed through the Construction Industry Scheme (CIS)
- You are a High-Income Earner (40% tax bracket)
- You will need a P45 for every employment held during the year; this is a three page blue form which contains your pay and tax details and is issued by the employer upon leaving.
- If you have worked to the end of the financial year you will also need a P60, which is a statement of income and tax for the tax year and is issued by the employer before the 6th July in the next tax year.
- If you have derived any Benefits in Kind from your employment (eg private medical cover or a company car) you will need a P11D, which is also issued by the employer before 6th July in the next tax year.
- If you have derived any additional income such as bank or building society interest or dividends, you will need to provide full details.
- If you work in the construction industry you will need a CIS 25 certificate from your employer.
- If you fall into the self-assessment category you will need to provide a P45/P60 or CIS Statement if you work in the construction industry.
If you are missing a P45 or P60 you can request your employer to issue you with a Statement of Earnings for that financial year. This must be printed on original company letterhead.
We aim to secure your rebate within 6 to 8 weeks of submission to HM Revenue & Customs. Your rebate can be transferred direct into the bank account you nominate on the Questionnaire. If you do not have a permanent National Insurance number or provide incorrect or insufficient information delays may be experienced.
Our charges are calculated at 18% of the rebate awarded (reduced to 12% for shipping clients), or £50, whichever is the greater (the minimum charge for self-assessment and CIS claims is £80). In addition a £10 foreign transfer fee is payable to accounts in Australia, New Zealand or South Africa (£15 to other countries). Our charges are deducted from the refund awarded and the balance is transferred to your nominated bank account. If no rebate is awarded then no commission will be payable. VAT does not apply to our professional services where the recipient of a tax rebate is outside of the EU, otherwise VAT applies.
If you wish to proceed please complete our Tax Pack. You need only complete the first form entitled "Tax Rebate Questionnaire" as the remaining forms will be populated with the information you provide. If you work under the Construction Industry Scheme (CIS), are self employed, are a higher earner (40% tax bracket) or a director of a limited company please also complete our Tax Return (sign pages 8 & 10 only)
Please download, sign and return the tax forms to us with your original employment records (P45’s and P60’s or CIS Statements. If you are entitled to a rebate we will advise you of your estimated entitlement and then process your claim. Following receipt your refund will be transferred into your nominated bank account.
Shipping customers of Anglo Pacific who take advantage of our special reduced fee for tax refunds should note that we are unable to process your tax claim prior to payment of our shipping account. Please return the Questionnaire (indicating our shipping reference) and employment records following collection of your goods.
NI Rebate Online will claim your NI rebate and transfer it into your own personal pension scheme. A portion of your National Insurance goes towards the State Second Pension. This is a voluntary arrangement from which any individual working in the UK may contract out and transfer contributions into their own personal or stakeholder pension scheme. This is particularly beneficial to overseas employees as it gives you personal control over the funds as opposed to receiving a pension from the UK government upon retirement. The amount involved is not insubstantial. For example an individual earning a salary of £30,000 pa can expect a rebate of around £1650. For further information on contracting out, please click here.
