Surprisingly, the Official HMRC Tax Credit Statistics section states, that on record, for each completed year about one-third of all tax credit claims have been overpaid.
In 2004, 33.14 per cent of tax payers that owned businesses overpaid the tax liabilities. The following year, 30.32%, and the year following that, there were about 29.32 per cent. Luckily, HMRC considers such a calibre of overpayments similar to underpayments or in fact, unpaid income taxes, and subsequently allow taxpayers to claim recovery.
These days HMRC has improved their service by enabling tax payers access to details of how much tax you are obliged to pay and thus whether you are eligible for a refund.
Reasons behind the Overpaid Taxes by People
However, before enlightening you with further tips, it is important to know just how you may have fallen for them, which is ironically a tip in itself. There are various causes of overpayments, and if you think you have been a victim, then you must get ready to delve yourself into the details of it. Some of the many causes include factors such as customer error such as changes to your personal circumstances which affect your income like splitting with a partner, unemployment, the birth of a child, etc.
Thereafter, we have annualized taxation calculations, inflexibility of the system, provisional payments, calculations and deductions, HMRC’s lack of experience, take up of tax credit, annulled awards, wrong capacity, and finally the IT infrastructure.
Google up things!
To grasp fully which category you fit in, with our third tip, you are encouraged to visit HMRC’s website and Google up everything you can about any page where you are likely to find the causes for overpayment and their details. Research is always a good thing to do.
How to reclaim your overpaid money?
To their credit however, HMRC brings you several ways to reclaim your overpayment. One of the ways to reclaim overpaid taxes is through your company or job. For example, an overpayment on taxes could have occurred because you acquired new employment and was charged with emergency tax code, or maybe your employer was using the wrong tax code.
It could also be possible if you were only in employment for a year, or if you are a student who only works during holidays. Our fourth tip therefore is that whatever the reason may be, if you have overpaid, visit HMRC’s website, specifically the section for the employed.
Finally, the fifth tip for you is to scan through the PAYE overpayments and the Self-Assessment tax sections, depending on where you fit.
It is very likely that you fall into one of those categories. In this case, HMRC’s website will prove to be very fruitful. Nonetheless, if you or anyone you know wants to reclaim overpayments through other means, HMRC provides opportunities for that as well.
If you need help to reclaim your overpaid taxes or need advice on any other tax or accountancy related business, contact Taxaccolega, a London Accountant, by calling on 08000 235 234 or emailing at firstname.lastname@example.org.