As record energy, living and mortgage costs continue to cripple households across the nation, tax refunds are more welcome news than ever – with a recent report revealing that the average yearly tax refund has increased to £1,518. In a period of widespread economic uncertainty, Britons are urged to use this time efficiently to claim back what’s rightfully theirs.
Tommy Mcnally, leading tax expert and CEO of Tommys Tax urged Britons to make their tax a priority as refunds could help cover costs elsewhere.
Taxpayers are being encouraged to act early to ensure they are able to save vital pounds amidst the cost-of-living crisis. HMRC predicted that around 600,000 people were expected to register to file their tax returns last month.
Thousands of people could be owed thousands of pounds and they do not know about it.
The average take home refund per year for PAYE workers is £600 (but they can historically claim back 4 years’ worth of this).
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Mr Mcnally said: “In order to take the anxiety out of having to do your taxes and file your self assessment on time, it’s best to approach it as something you manage on a weekly or monthly basis.
“For example, setting aside just two hours at the end of each month to reconcile your expenses with your receipts will make the deadline for submission a lot less daunting.
“With so many unregistered agents out there, as well as the current delays through HMRC, I’m sure that many people are wondering whether they’ll be able to claim their rebates back in time – that is why we’re here to help with the entire process for workers across the country.
“One of the ways we help is by educating customers about the various tax rebates that people are eligible for, but don’t make use of and that is where we’re here to help.
If this is the case, Britons will need to keep all their receipts (or bank statements can also work) – it’s important to note that they can’t do both.
It’s important that people have their key information ready.
This includes one’s income and expenditure details, meaning they must have all invoices and receipts in hand.
Mr Mcnally, explained it’s critical people keep all their records throughout the year, as HMRC may check their return after they’ve filed, asking to see their records.
People are also required to keep their records for five years after the January 31 deadline.
The experts at Tommys Tax have compiled a list of 33 types of expenses people can claim back as a self-employed worker on their website.
The average amount that can be claimed by a self-assessment worker ranges anywhere from £2,000 – £3,000.
Tommys Tax normally caps the expenses at £4,500, so unless the customer is a higher earner, the refund amount will not change.
Claims can be made through the Government’s website. It comes as analysis suggests more people are trying to secure tax rebates, with abandoned calls to HMRC doubling from 300,000 to 600,000 since 2017.