Tax Rebates in the UK

As a citizen or resident of the UK, there are several tax rebates available for you. Some of these rebates are already well-known while others aren’t as popular. Here are some of the ways for you to claim rebates on your taxes.

  • If you are employed and you feel like too much tax was taken away from your pay then you can file for a tax rebate. Make sure to check if you have paid the right amount of taxes before filing a claim. Take note that the HM Revenue and Customs (HMRC) will still investigate your claim.

To file for a claim online, you will need the following:

  1. The PAYE reference number of your employer – This is indicated on your P60.
  2. Information on any taxable income or taxable benefits you may have or received during the past year.

You may also file a claim via call or mail to the HMRC. For this, the following are needed:

  1. Your P45 if available
  2. Your National Insurance number
  3. Information on the previous jobs that you had. You may also provide the details of the benefits that you had at that time.

After filing your claim, the HMRC will perform an investigation. The HMRC may also contact you for more information while the investigation is ongoing. If it has been found that you have indeed paid too much tax, then the HMRC will post you a P800 tax calculation. This happens usually by the end of July. After 14 days of receiving the P800, you will receive a check; otherwise, known as a payable order. They can also send you your refund using your bank account.

Please note that the HMRC does not send P800 by email. If you have received such email, know that it is a scam and report it to HMRC.

If you are not due for a tax rebate, HMRC will also notify you and tell you why you are not eligible according to unifrom tax rebate specialist

  • You may claim VAT refunds for the things that you bought in the UK if you are:
  1. A resident of the EU but will be leaving the country for 12 months or more
  2. Living outside the EU, visiting the UK and then going back home.
  3. A non-resident of EU but is working or studying in the UK and leaving the EU for 12 or more months.

To file a claim for VAT refund, you have to have a VAT 407 from the retailer where you bought your goods. You can ask for a VAT 407 from the retailer upon purchase of goods. Most of them will request that you provide proof that you are eligible for VAT refund. Note that not all retailers offer tax free shopping. Note also that VAT refund is good only for items bought within the last three months. Anything beyond that cannot be claimed.

After completing the appropriate forms, proceed to the customs area to present the goods that you have bought, the VAT 407 and the completed forms. Once they find that everything is in order, they will approve your form and you can get paid.

In some cases, you can get immediately paid via the refund booth that can be found at the airport. In other cases, you will need to send the approved form to the retailers before receiving the payment. Some retailers charge fees when handling your form, which will be deducted from the VAT refund.

There are also some goods that you cannot claim rebates for. These are some of them:

  1. Goods that you have already used while you are staying in the EU – Examples of these types of goods are perfumes, expensive creams and the like. When presenting goods to the customs, they must remain sealed and unopened for you to claim refund.
  2. New or used cars – Cars are not part of the goods that are tax free.
  3. Gold that weighs over 2.75 ounces or 125g
  4. Unmounted gemstones – These will need to be declared at the customs and are not tax free.
  5. Goods that are worth more than £600 and are exported for business purposes – unless you can prove that these goods are for personal use, you will have to be taxed for goods over £600.