11 Reasons Why You Could Be Due a Tax Refund

4 mins

Our specialists explain the reasons why you might be owed a tax rebate by HMRC

We know that for many, taxes are a confusing nightmare. What with your P800s, P11Ds, P45s and P60s it can all get a bit complicated. For many people, it can be easy to just let your employer deduct your tax and National Insurance and not think too much about it. But there are a number of circumstances where you might be paying too much tax, or may have paid too much tax in the past, and as a result you could be entitled to a refund. Claim a tax refund can seem worrying but don’t forget, this is actually your money in the first place and a tax refund just puts that cash back where it belongs – in your bank account.

The tax preparation specialists at DSR Tax Refunds Ltd have put together their top 11 reasons why you might be due a tax refund – if you think any of these apply to you, give our friendly team a call on 0330 122 9972 and let’s get started on your tax refund claim today. So, do any of these sound familiar?

1. Work mileage and transport expenses

If you have to travel to a temporary workplace, or a client site, as a part of your job you could be entitled to claim your mileage costs back. So, if you are an engineer travelling between client sites or a health support worker going from service user to service user, you could claim up to 45p per mile on your mileage. And if your employer pays you back for some, but not all, of your mileage you are entitled to claim the difference. Public transport costs can also be claimed for if you have to travel for business purposes.  

2. CIS subcontractor deductions

If you work as a subcontractor in the construction industry, you have probably heard of the CIS (Construction Industry Scheme). This was introduced by HMRC to crack down on tax avoidance and means that contractors have to deduct 20% of subcontractors’ payments – however, you might find that you have had too much deducted from your payments and we can help claim that back for you.

3. Tax reliefs for self-employed people

If you are self-employed, you are entitled to claim tax relief on your business expenses and they can often be hidden expenses. Not only can you claim for the tools and equipment needed for your business, but you can also claim for bank and credit charges, the cost of advertising your business, office costs – including the cost of using a part of your home as an office if this applies to you. As a self-employed person you may find that you have plenty of deductible expenses that you weren’t even aware of.

4. Clothing costs

Now, we’re afraid you can’t claim for your everyday ‘civilian’ clothing, but if you have to wear a uniform for work and you are responsible for cleaning or repairing it, you can claim for your laundry and repair bills. You can also claim if you are expected to replace any worn-out items yourself. This includes any safety gear you might have to wear for your job.

5. Tools and equipment

Just like with your work uniform, if you are responsible for repairing and maintaining any tools and equipment for your job, you can claim for any expenses you incur. And if you are expected to replace any of your equipment out of your own pocket, you can claim for this too so make sure you keep those receipts! So, whether you are a carpenter or a hairdresser, if you are forking out to maintain the tools of your trade, you could be due a refund.

6. Incorrect tax code

While HMRC might get it right most of the time, sometimes mistakes can happen and you can find yourself being taxed under the wrong code. If this happens, HMRC will do their best to ensure you are using the correct tax code but you are entitled to claim back any overpaid tax you paid as a result of the wrong tax code.

7. Changing jobs

Ah, the dreaded emergency tax code! Usually, changing employer goes smoothly and your new employer can get all the relevant information they need about your tax code from your P45. However, where this doesn’t happen you may find yourself being taxed under an emergency tax code – ouch! But no matter how painful it seems at the time, you can claim back any tax you overpaid while you were being taxed under an emergency tax code.

8. Professional subscriptions

Do you work in security and require an SIA licence to work? Or maybe you are a nurse or midwife and are expected to be registered the Nursing and Midwifery Council? Whatever your job, if you are required to hold a professional subscription to do your job, you can claim back the costs of this subscription.

9. Expenses when working away

If your job means that you have to stay away from home overnight, you can claim back your accommodation and subsistence costs because HMRC recognise that this is likely to be more expensive to you than being at home. So, if you have to work away from home and your employer doesn’t reimburse your board and lodgings, you can claim this back as a tax refund.

10. Marriage allowance

You may not be aware of this, but if you or your spouse earn less than the personal allowance (currently set as £12,500 per tax year), you can transfer some of your unused personal allowance to your spouse if they earn above that personal allowance. This could be worth up to £250 and claims can be backdated for up to 4 years.

11. Becoming self-employed

If you become self-employed part way through a tax year, you might find that you overpay your tax in that tax year while you work to make your new business profitable. If you make a loss in your new business, you should be able to offset that against any tax you paid in that tax year.

Start your tax refund claim today

At DSR Tax Refunds Ltd, we aim to take the strain out of your taxes so if you think you are entitled to a tax refund, call our friendly team on 0330 122 9972 and get started on your refund claim today. We take care of all the paperwork on your behalf and we even deal with HMRC so you don’t have to.

You May Also Be Interested In

Our experts have collected an extensive range of handy informational resources across a number of common taxation areas. If you can’t find what you are looking for here, check out our Resources section.