If you have overpaid on your income tax, you may be eligible for a refund. Overpayments are surprisingly common and usually occur when you change jobs or forget to claim for allowable expenses. If you have overpaid within the last 4 years, you can apply for a refund.
Why overpayments happen
There are many reasons why you may have overpaid your income tax, ranging from an employer applying an incorrect tax code to failing to claim allowable expenses that you were unaware of.
HMRC’s systems don’t always flag anomalies for you, so if you have experienced any change in income, employment or financial circumstances within the last four years, it is well worth reviewing your data, or asking Worcester accountants such as https://www.randall-payne.co.uk/services/accountancy/worcester-accountants to do so on your behalf at the earliest opportunity.
What to do if you have overpaid
If it transpires that you have overpaid, you can submit a claim via the HMRC portal. You will need to declare what you have paid too much tax on, for example, this could be income from employment, expenses, your pension or a redundancy payment, then follow the steps in the tool to submit your evidence and raise your claim. If approved, the refund will be processed automatically.
In conclusion
If you have overpaid on your income tax, you could be due a refund of up to £3000, so it is important to check back through your financial paperwork and submit your evidence as there is only a four year window in which you can claim.