Christmas tax refund warning as people could claim back thousands

People are being urged to see if they can demand a tax refund that could earn them thousands.

The Christmas message can benefit people across the UK if they fall into certain categories.

Tommy McNally, founder of the tax app, has made the call against the backdrop of the massive layoffs caused by the pandemic, the Express reports.

“With the increase in layoffs, staff on leave and lack of pay increases, this Christmas will be tighter for many than ever before,” he said.

“However, there are many ways to make Christmas affordable and fun, and potentially claim that surprising tax credit you didn’t know you owed.”

A tax refund is just one option, he said.

“So many people don’t realize they could qualify for thousands of pounds in tax refund over the years, especially if they’ve worked from home, washed uniformly, and traveled distances to and from work.

“On average, we help individuals recover between £ 2,500 and £ 3,000, which could be a huge Christmas treat for some.”

You can find more information about tax refunds at this special government webpage here.

It can help if you paid too much for:

  • pay for your current or previous job
  • pension payments
  • income from life or annuity
  • a redundancy pay
  • a tax return for self-assessment
  • interest from savings or PPI
  • foreign income
  • UK income if you live abroad
  • fuel costs or work clothes for your work

If you are unlucky enough to lose your job this year, help may be available.

“You could owe taxes if you were one of the thousands of people fired this year,” he said.

Income tax is estimated based on a person’s annual salary and divided by 12 equal payments, but if you left work early before the end of your tax bill, it means that your tax deductions were higher than needed to date – resulting in a tax refund you don’t get. I don’t want to miss it. “

You can find out more from the government here.

You may now be able to reclaim income tax if you recently stopped working, for example if:

  • you are looking for work and have been unemployed for four weeks or more
  • you don’t expect to go back to work
  • you have returned to full-time studies

You cannot request a refund now if you:

  • receive or will receive another taxable income before the end of the tax year, such as an occupational pension from your old employer
  • claim:
    • Jobseeker’s Allowance (unless you are only entitled to national insurance credits)
    • taxable disability benefit
    • Labor and support allowance
    • Attendant allowance

Plus, money could be saved by tracking down some of the bargains on offer in December.

“Use your smartphone to find the best gift deals,” he said.

“Always have a voucher code if you can.”

And it may seem simple, but looking at your expenses again can be an easy way to save money.

“Take the time to review your finances,” he said.

“If you have both savings and loans, try to consolidate.

“The rate you pay to borrow is always more than the rate you get on your savings, so it’s always better to pay off your loans rather than pour money into your savings, until of course you can . “