Losing a job out of the blue does feel stressful. If you are currently facing unexpected unemployment, you should be aware of the income tax benefits you are eligible for. You could be paying more tax than necessary in which case a tax refund/ rebate comes into the picture. Start by finding out if you are eligible for a tax rebate.
Eligibility for tax refund:
- Did you lose your job before the completion of a tax year? The tax year extends between April 6th and April 5th of the next year.
- Were you previously employed and paying your tax through Pay As You Earn?
- Are you still unemployed?
If you have answered in the affirmative, there are chances you may be eligible for a tax refund. There are also ways to maximize your tax refund. If your previous job involved using your tools, you are eligible for more refund. Professionals like mechanics, engineers, auto-mechanics who have purchased their tools can claim back a percentage they spent on tools.
Get professional help to claim tax rebates:
Claiming tax rebates involve more paperwork which can get too time-consuming. Make sure you are receiving the maximum tax rebate amount possible by getting professional help. If you are to claim tax back on tools get in touch with tax and accountancy services in your area. Tax Rebate Services is the leading online tax rebate company in the UK.
Their experienced tax experts will take care of the paperwork for you and help you claim the rebate amount. The amount value depends on your income since the start of the tax year and the tax amount you paid in addition to other incomes. Use their free tax calculator to find out how much you are owed.
Common questions answered regarding tax refund answered:
How to claim a tax refund for tools?
You’ll have to submit receipts of all tools you purchased during that year. If you made an online purchase, the email order confirmations can be used as proof.
Can I claim a refund for the tools I purchased on finance?
Yes! The mode of payment for tools doesn’t matter. You’ll even be able to claim tax back on the interest you paid. A copy of the financial agreement would serve as proof.
Can I claim a tax refund for the tools I purchased in the past?
Yes! Some people have never claimed rebates for tools. If you have the receipts of the tools purchased, you can claim a refund tax for that. There is no fixed time limit for claiming tax refunds on tools. However, if the tools were purchased within 4 years from the end of the tax year, the refund process would be faster.
What makes me not eligible for tax refunds for tools?
You would be deemed ‘not eligible’ if your employer has reimbursed the cost of the tools or if your income doesn’t require you to pay income tax.
You get to claim about 20% of the initial purchase amount. Claim back the tax refund using the help of a professional.