Millions of us unwittingly pay more tax than we need to, says Steve Lodge in the FT. The National Audit Office recently reported that we may have been paying £340m a year too much through the PAYE system and that processing errors left more than half a million taxpayers £290 out of pocket in 2006-2007.
Then there are the mistakes we all make: failing to reclaim tax deducted at source from savings accounts, erroneous entries on tax returns and, for higher-rate taxpayers, failing to claim the 18% tax rebate on pension and Gift Aid contributions.
One area that is often overlooked is the career break, says Mike Warburton in The Daily Telegraph. If you are in the PAYE system and take a year off, it is very likely that you will have overpaid tax in that year and be entitled to a repayment.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
In the year of your return, you may also end up paying too much tax as it is and your employer may well have to use an emergency code number or operate on a one-month basis. You can apply for the refund via your end-of-year tax return or by filling in form P50.
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
