Home > Tax Credits > Tax Repayment Claims

Tax Repayment Claims

By: J.A.J Aaronson - Updated: 2 Sep 2012 | comments*Discuss
 
Repayment Claims Claim Income Tax Inland

Death and taxes are, as the old adage has it, the only two certainties. However, many people can bitterly attest that this certainty does not extend to the accuracy of the Inland Revenue’s calculations.

Every year thousands of people are overcharged in tax, and a huge proportion do not make any claim or appeal as the system appears oblique and difficult to understand. In reality, however, it is far from impossible to appeal against an apparent overpayment of tax.

Keeping Track of Tax

If you are an employee who pays tax using the PAYE (Pay As You Earn) system, it is perfectly possible that you would never have looked at the amount of tax that you have paid. As it is automatically deducted from your wage, Income Tax and National Insurance Contributions (NICs) may not be noticed when you pay them.

While this obviously means the tax system involves considerably less work for you, it can also lead to individuals losing track of how much they have paid. As a result, it is important that you are aware of the basic income tax bands. These, along with the rates at which you should be paying NICs, are covered in more detail in articles elsewhere on this site.

Understanding Your Tax Code

Before you lodge an appeal, you should always acquaint yourself with your Tax Code. This will be visible on your pay slips, and generally consists of a letter and around three numbers. The meaning of the code is dependant on whether the letter comes before or after the numbers.

If the number comes first, this number represents one tenth of the amount that you can earn before paying tax. The letter modifies your code in one of several ways: the most common is ‘L’, meaning that you are entitled to the basic Personal Allowance.

If, however, your code begins with a ‘K’, the number that follows it will represent one tenth of the amount by which you exceeded your non-taxable allowance, and therefore of the amount that must be added in order that you pay the right sum in tax.

Getting the Right Form

Having looked at your tax code, if you are still concerned that you have paid too much tax, you should then lodge a repayment claim. This is not as hard as you might imagine. The first step is to either contact your Tax Office, or visit the DirectGov website, where you will be able to download the relevant forms. In most instances you will require form R38a.

In some circumstances, however, other forms should be used; if, for example, you are making a claim for repayment of taxes paid on investment income, you will require form R40.

If, on the other hand, you have ceased to work during the current tax year, are not expected to return during the same tax year, and are not claiming Jobseeker’s Allowance, you will require the P50 Tax Claim form. It is very important that you do not use this form if you are still working.

Form R38a, the most common of the options available, is a fairly simple two-page form. The first page is essentially a space for a cover letter, so you can outline the problem yourself. The second page is used for giving your bank details in order that the repayment can be made. As can be seen, you should not be put off by any apparent complexities in the repayment system.

You might also like...
Share Your Story, Join the Discussion or Seek Advice..
The best advice is to contact the tax office and ask them when you can expect payment.
TheTaxGuide - 29-Jun-11 @ 11:12 AM
Hi, I applied for my tax rebate on line on 15th june 2011. It's showing repayment pending and it's been 9 working days. Should I contact the tax office or wait some more?
gg - 28-Jun-11 @ 10:19 AM
Share Your Story, Join the Discussion or Seek Advice...
Title:
(never shown)
Firstname:
(never shown)
Surname:
(never shown)
Email:
(never shown)
Nickname:
(shown)
Comment:
Validate:
Enter word:
Latest Comments
  • JellyBean
    Re: Are DVLA Car Tax Rates Fair?
    A one-litre Ford Fiesta petrol Ecoboost at the average 12,000 miles per annum, puts out exactly the same CO2 in 12 months as, for…
    18 October 2019
  • Cherral
    Re: How Will My Second Job Be Taxed?
    I am a director of my husband's company getting paid £1500 per month. I would like to have a casual 25hr job at 8.60 per…
    16 October 2019
  • Lazarus
    Re: How Will My Second Job Be Taxed?
    I have two part time jobs 1st job 18hrs a week at £8.21 2nd job 12hrs a week at £8.65 an hour, both paid monthly... Anybody…
    1 October 2019
  • leigh
    Re: How Will My Second Job Be Taxed?
    I have been looking for a cleaning job two hours on a morning and two on an evening. I'm on working tax credits. I have been…
    26 September 2019
  • Bev
    Re: What is My Tax Code?
    My tax code is 506L which I think is incorrect. how do I check this?
    26 September 2019
  • davel
    Re: Paying for Training Can I Claim Tax Allowance?
    I have just paid for my son to carry out his pilot training £38,000 plus I have kept him for the last 2…
    24 September 2019
  • mac
    Re: How Will My Second Job Be Taxed?
    Hello, I have 2 jobs - 1 full time (my main job) through an employer that pays me £80k a year, then I have another, which…
    9 September 2019
  • Chris
    Re: How Will My Second Job Be Taxed?
    I'm an apprentice earning £8,482 a year. I also have a second job, 5 hours a week, earning £2,000 a year. As both wages total…
    8 September 2019
  • Laura
    Re: How Will My Second Job Be Taxed?
    Good afternoon, I have two full time jobs one 25,272 per year and second 24,591£ how much tax I pay in one year? . Thank you .
    7 September 2019
  • Jan
    Re: Payment of Pensions
    I would like the frequency of my State Pension payments changed to weekly from four weekly. How do I do this?
    30 August 2019