The economic downtown of the last few years has left many unemployed in the United Kingdom. As a result of companies downsizing, many people were made redundant. If you are among the unemployed, no doubt meeting your financial obligations has been stressful. On the bright side, however, you are most likely due to get a tax rebate.
Table of Contents
Why is Money Owed?
It’s fairly simple. PAYE assumes you’ll be making the same amount at the same job for the duration of the tax year. Additionally, everyone is given an annual tax-free allowance, the amount you can earn before you have to start paying taxes (£7,475 2011/2012). The tax system spreads that allowance over all your paychecks, starting immediately. Thus, if you are made redundant six months into the tax year, you have only taken advantage of half of your tax free allowance. It’s like you started paying taxes after earning only £3,737.50, instead of £7,475. Actually, the longer you’ve been unemployed during the tax year, the more you have overpaid.
How Do I get my Money?
It’s easy. Use our online tax calculator to figure out how much is owed to you. Even if you have already found another job, you can apply for your back tax for up to four years. Taxback can make the process simple and seamless for you. Our team of professionals assists anyone paying UK taxes, including those who have left their employer and earned less than the tax-free allowance. Taxback offers a free, no obligation consultation and will take care of your rebate at a low commission rate.
Don’t leave money on the table. The unemployed are a group most in need of additional funds. Contact us to find out if you are owed tax money.
Photo by Clem Onojeghuo on Unsplash