One of the most common questions around tax refunds is how far back can a claim be made with HMRC, (formerly Inland Revenue), when making a claim.

How Far Back Can I Claim Tax

The time frame around claiming tax back used to be up to 6 years, however HMRC have now changed this to just 4 years. This year (2011) you can make a claim and if eligible receive a tax rebate for tax years 2010/11, 2009/10, 2008/09 and 2006/7. You would not be able to reclaim any overpaid taxes for any period before 5th April 2007.

Interestingly HMRC can still go back up to 6 years or even up to 20 years, if you have not paid enough tax!

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What Information Do I Need to Claim Tax Back?

To review your tax position in the year you will to have the following:

P60 and/or P45(s) These are documents that show the pay and tax deducted from employment.

P11d This details any taxable benefits you have received, for example medical benefit, company car, etc
Details of any State Benefits received, State Pension, Jobseekers Allowance, Taxable Incapacity Benefit etc
Amounts of bank interest received, do not include ISA’s
Amounts of any dividends received from any shareholdings
Any other income received during the tax year

Once all the relevant information is gathered it is a case of calculating the total tax due on the income you have received and deducting from this the amount of tax already paid.

For example:

Sam has worked for 2 different employers in the tax year. They left ABC Ltd August 2009 and they were given a P45 with pay of £6,000 and tax deducted of £660.

Sam was out of work for a while and finally got a job with DEF Ltd in December, unfortunately by this time he had lost his P45. His new employer taxed him on tax code BR (Basic Rate, this is where all of your pay is taxed at 20%).

From December up to the 5th April 2010 Sam earned £10,000 and had tax deducted of £2,000.

Is Sam due a refund? Sam contacted Tax Advantage for help, he sent in his P60 from his employer and asked his last employer to send him a letter with the pay and tax that he earned with ABC Ltd.

We reviewed the tax year for him, he did not have any other income only his pay.
Income from ABC Ltd £6,000
Income from DEF Ltd £10,000
Total £16,000

Less Personal Allowance £6,475
Taxable pay £9,525
Tax due = £9,525 x 20% £1,905
Tax paid £2,660
Refund due £755.00

It paid for Sam to use Tax Advantage to review his situation as he received a refund of £755.00

There are literally thousands of people each year that could be due a tax refund from the previous year or the last 4 working years. They may be due a refund if they have moved from 2 or more employers during the tax year and overpaid tax, have unclaimed expenses, worked for only part of the tax year or a Student. No matter what your circumstances we can help, there is no obligation, we will review your pay and tax for free and you will only pay us if you are due a refund. Please complete the contact form and we will get back to you.

If you fit any of the situations on our tax refunds page this could mean you are due a tax refund.

quality serviceWhy use Tax Advantage Refund Service?
Tax Advantage offers:
• Free no obligation tax refund review
• No refund, no fee policy
• Fast Efficient Service

Tax Advantage will calculate exactly how much tax rebate you are entitled to, once you have signed the claim form we will liaise with HMRC to ensure the claim is processed as quickly as possible.