In some instances you don't need to wait until the end of the tax year - 5 April, in order to get back any tax you've overpaid during the year.
Here are a few examples where you can get tax repaid earlier:
- You make a claim for business expenses you've incurred but which have not been reimbursed by your employer. This can be done online or by post using HMRC's form P87 providing that the amount of the claim is less than £2,500. Please click here to find out more.
HMRC should check your claim and amend your Tax Code to include the expenses resulting in a refund with your next salary payment or lower tax deductions in the remaining months of the tax year.
- If you stop working part way through the tax year and are not going to have a continuing source of taxable income, for example, you are not intending to go back to work within 4 weeks or claiming a state benefit, you should be able to claim an in-year tax repayment either online or by post using HMRC's form P50. Please click here to find out more.
- Anyone taking a small pension in the form of a lump sum (sometimes called a 'trivial commutation' payment) who doesn't have to complete a Self- Assessment Tax Return can claim using an HMRC form P53 online or complete a downloaded form and post it. Please click here to find out more.
HMRC should process the claim and send you a cheque within 4 to 6 weeks.
There are other occasions where similar in-year claims can be made, including pension drawdowns and removal abroad. If you need any help in preparing a full claim please contact firstname.lastname@example.org or call the PayStream Tax Advisory team on 0161 929 6000.