One of my favourite conversations with clients is telling them they are entitled to a tax refund. Usually my job is telling them they must withhold tax/vat, so tax rebates are an easier conversation that I find are best on a sunny Friday.
Income for taxes
Unlike an employee who receives a pay slip each month with all deductions done at source for them by the employer you now have to calculate this yourself, pay it & file with revenue.
How did I overpay tax?
There are a variety of situations, but the ones we see regularly are:
Clients takes a break in employment or was made redundant.
Clients have had a change in circumstances i.e. married or maternity/paternity leave
Clients have been put on emergency tax
Client has medical/dental expenses that they can claim back.
Key tax dates
1st January- First day of the new tax year.
31st January- CGT Capital Gains Tax is due for the previous calendar year.
31st October- Income tax return due and payment for the previous year.
31st December- Last day of the current tax year.
“Under self-assessment there is a common date for the payment of tax and filing of tax returns. You must file your tax return on or before 31 October in the year after the year to which the return relates.
This system, which is known as Pay and File, requires you to:
- file your return for the previous year
- make a self-assessment for that year
- pay the balance of tax for that year
- pay preliminary tax for the current year.
Please do not leave this to the last minute as the penalties do not tickle.