Technology

41% of people know their taxes well

41% of people in the dark about their tax refund according to new research; this is why you may be owed money.

Right to Tax Refund

With the cost of living set to rise in the coming months, research by tax refund experts, RIFT Tax Refunds, shows many people don’t realize they can get a refund even if they’re paid through PAYE , and so on. miss out on almost £1,000 in the pocket every year.

According to a survey conducted by RIFT Tax Refunds, 41% of people do not realize that they can get a tax refund, even if they are paid through PAYE, instead assuming the refund is only for employees free.

Furthermore, about 53% of people do not know that they have up to four years from the end of each tax year to claim a refund. Previous RIFT research revealed that this means the average applicant is missing out on £2,500 cashback on the first four years of claim and £929 each year thereafter.

Why do so many people not know about tax refund?

A major reason people are not aware of this fact is that 60% have never actually signed up tax refund and so there’s never a reason to learn about how tax refunds work.

A tax refund is an amount that can be claimed by HMRC if a person has paid more tax than they owe in any given tax year.

There are countless reasons why one might be in debt but the most common reasons include:-

Tax code problem

Your tax number is assigned to you to help the government decide the amount Income Tax you have to pay. However, they can vary depending on a person’s income and employment situation. Sometimes these changes are not recorded correctly and as a result people continue to pay a larger amount of tax than their income dictates. This can happen due to a job change, a change of role, or a move from self-employment to PAYE and vice versa.

Private pension and overpayment

With private pensions linked to income, it is not uncommon for people to be overcharged in tax, an error that can go unnoticed if a claim for a refund is not filed. Likewise, taxes are often overpaid on overpayments.

Annuities

An annuity is a financial product that pays a fixed stream of payments to an individual, primarily used as a source of income for retirees. If a person’s annual income is less than their personal allowance, they are not taxed, but sometimes still are.

Income from abroad

When UK taxpayers earn money abroad, it creates tax complications that can easily lead to overpayments.

The most common things for which a person will receive a tax refund include work-related travel expenses; accommodation and accommodation costs related to employment; buy uniforms and tools needed for a job; professional fees such as membership of professional organizations or groups, including unions; costs associated with working from home, especially relevant in times of pandemic; and the fuel allowance a person can claim for mileage when they are required to drive their own car for their job.

https://techround.co.uk/news/41-of-people-in-the-dark-about-their-tax/?utm_source=rss&utm_medium=rss&utm_campaign=41-of-people-in-the-dark-about-their-tax 41% of people know their taxes well

Fry Electronics Team

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