What is a tax refund?

A tax refund is a repayment of PAYE (Pay As You Earn) tax that you have overpaid during the tax year, as determined by HM Revenue & Customs.

Who can make a claim?

Anyone who has lived and worked in the UK may be eligible to claim for a tax refund. Certain criteria do apply, however 97% of people are able to make a claim - even after they've left the UK!

When can I claim my tax back?

You are able to claim after the end of any financial year (5th April) if you are still working in the UK. If you are leaving the country or have left, you may claim during the financial year.

How many years can I claim for?

You can claim as far back as 6 tax years.

What do I need?

In order to claim a refund you will need a P45 for each employment you have had during the tax year and a P60 from the company that you were employed by at the end of the tax year. You should obtain these from your employer or agency. If any P45's or P60's have been lost you will need to obtain a Statement of Earnings from your employer or agency as a substitute.

Please note: HM Revenue & Customs does not accept Payslips as proof of income and/or tax paid.

What is a P45/P60/CIS voucher?

·         A P45 is a certificate of your income indicating how much you earned and how much tax you paid on those earnings. It is a blue, three-page form, which your employer will issue to you at the end of each employment. The top page (Part 1A) is to be kept by you for when you want to claim your tax back. Pages two and three are to be handed to the next employer.

·         A P60 is a certificate of income issued to you at the end of the financial year indicating how much you have earned and how much tax you paid on those earnings.

·         A CIS Voucher. CIS stands for Construction Industry Scheme. Those working in the construction industry are issued with a CIS voucher at the end of each month and contract. This is a certificate of pay showing your income and tax paid on those earnings.

What if I've lost my P45 or P60?

If you have lost your P45 or P60 you will need to contact your employer or agency and ask them to issue you with a Statement of Earnings as a substitute. If you are unable to do this, 1st Contact Tax may be able to assist you. Subject to conditions, we may be able to follow up on a maximum of 2 outstanding documents at a cost of £20 + VAT per document. In our experience we have found that our clients have a higher rate of success getting this information from their employers/agencies, we would therefore like to advise all clients to try to obtain the documentation first before contacting us for assistance. Please note that 1st Contact Tax cannot guarantee that outstanding documentation will be received, as employers/agencies are not legally obligated to issue Statements of Earnings.

How much can I claim back?

If you have earned less than the 'tax free allowance' you will be able to claim back all of the tax you have paid (i.e. the tax free allowance for the 2005/2006 tax year is £4,895). If your earnings exceed the 'tax free allowance', you're probably still due a refund. To calculate you tax refund Tax Refunds Advisors for a free no obligation quote.

What are our fees?

·         Our charge for submitting your claim for a tax refund is 18% + VAT of what we are able to successfully claim from the Inland Revenue (subject to a minimum charge of £50 + VAT). 1st Contact Tax offers a Price Match Policy - we will match any quoted price by another ATA bonded company. And don't forget our NO REFUND NO FEE policy!

1st Contact Tax offers a discounted rate of 16% + VAT for claim packs that are emailed or printed by the client (This offer is excluding Self-Assessment Tax Returns and Fast Track payment options).

·         For those working under the Construction Industry Scheme (CIS), our fee for submitting your Self-Assessment Tax Return is 18% + VAT of what we can successfully claim back from the Inland Revenue (subject to a minimum charge of £80 + VAT, payment may be required up front).

Important VAT note: 1st Contact Tax will not charge VAT if you are leaving the UK and entering a non-EU country.

How long does it take?

Once you have provided us with your details and all documentation, we aim to finalise your claim within six to eight weeks.

Please note that some claims may exceed the expected completion time due to the client not having a permanent National Insurance number, providing incorrect or insufficient information and/or unavoidable delays caused by HM Revenue & Customs.

What is the financial year?

The financial year, commonly known as the tax year, runs from April 6 until April 5 the following year (i.e. 2007/2008 tax year = 6 April 2007 - 5 April 2008).

Tax Codes and Emergency Tax?

·         Your tax code relates to the tax free allowance that has been allocated to you. For the 04/05 tax year the tax code is 489L which means you have a tax free allowance of £4,895.

·         If your tax code has any of "X", "M1" or "W1", then your tax is being calculated on your monthly or weekly earnings as opposed to an annual salary basis. Another tax code is "BR", this indicates that no tax free allowance has been given to you and basic rate tax is being charged. These are forms of emergency tax and are usually charged if your employer is not sure how much you should be taxed. Tax codes are shown on payslips, P45's and P60's.

Do I need a National Insurance Number (NINO)?

A National Insurance number is a reference number that HM Revenue & Customs uses to record where you have worked and what your earnings have been. You are obligated by law to get a permanent NINO once you start working. While having a permanent NINO will ensure your claim is dealt with more efficiently a refund can be claimed using a temporary NINO (however, the claim may be subject to delays).

What is self-assessment?

Self-Assessment requires the mandatory submitting of a Tax Return. This is an Inland Revenue issued document, which requires you to declare your earnings and tax paid for a financial year.

Who is required to submit a Self-Assessment Tax Return?

If you fall into one of the following categories you should be sending in a Tax Return:

·         You are the director of a limited company.

·         You are self-employed.

·         You work through the Construction Industry Scheme (CIS)

·         Or you are a High-Income Earner (40% tax bracket)