If you recently lost your job or were laid off, you may be eligible to receive a portion of the taxes you paid while employed. Continue reading our blog to understand how to claim tax back after losing job.
The amount you are likely to receive will depend on several factors, including the amount of tax you paid on your earnings while employed and whether you paid tax on any other income. It also depends on how much you have earned since the beginning of the tax year.
You may be able to claim tax back after redundancy in more situations. You may have been assigned an emergency tax code for the first few months of your new job.
Similarly, if you recently transitioned from full-time to part-time employment, you may have paid too much tax thus far and be eligible for a refund. Continue reading our blog to understand how to claim tax back after losing job.
After Becoming Unemployed, Can I Claim Any Redundancy Tax Back?
Claiming Tax Back after redundancy will be the last thing on your mind when you are laid off.
If, like many people in the UK, you have recently lost your job and are struggling financially, we have good news for you. Almost certainly, HMRC owes you a tax refund.
It is because income tax is based on your expected annual salary in April (the beginning of the fiscal year) divided into 12 equal payments.
Consequently, your tax bill should be reduced if you lose your job before the end of the tax year. Due to the additional expenses incurred this year due to the pandemic, you may also enrol for an unemployed tax return.
What Can I Claim Redundancy Tax Rebate For?
Manual returns do not qualify for a refund. The refund amount should appear clearly on your unemployed tax return.
A refund resulting from the Income tax return can be requested by filing a separate application in HMRC. To determine the application process, visit the Regional Tax Office in your area (RTO).
You can also request a refund after filing your Income tax return, but only within two years of the return filing date (date of assessment) or the date the tax was paid, whichever is later.
What Can I NOT Claim Redundancy Tax Rebate For?
You cannot request an unemployed tax return at this time if you are:
- Receiving or will receive taxable income from your old employer, such as a pension, before the end of the tax year.
- Jobseeker’s Allowance (unless applying solely for National Insurance credits).
- Taxable Disability Benefit
- Employment Assistance Benefit
- Caregivers’ Allowance
How Do I Apply For a Redundancy Tax Rebate?
Statutory redundancy pay is a sum that, under certain conditions, your employer is required to pay you if you are laid off.
The amount you receive is based on how much you were paid, how long you worked for your employer and your age.
You can either:
- Use the HMRC web service to claim income tax back if you’re unemployed
- Print and mail the form to HMRC after you have finished filling it out on the website.
To use the internet application, you must have a Government Access user ID and passcode. You can generate one through the service if you do not already have a user ID.
Is It Possible To Find Out How Much Unemployed Tax Return I May Be Owed?
The HM Revenue and Customs (HMRC) website is a straightforward tax checker tool. It should take only a few minutes to determine how much money you are eligible to receive.
You may still be overpaying or underpaying your taxes. For instance, if HMRC was unaware that you received a company benefit or a pay raise, they will not update your tax code.
If you have not paid enough tax by the end of the year, HMRC will send you a P800 or Simple Assessment. On your P800 or Simple Assessment, you will find instructions for claiming a tax refund or making a tax payment.
How Long Will It Take To Get The Redundancy Tax Rebate?
The funds will be deposited into your UK account five business days after your bank processes the payment.
HM Revenue and Customs (HMRC) will send you a cheque if you do not submit a claim within 21 days. It will arrive within six weeks of the date on your P800.
Need Help In Claiming A Tax Rebate?
If you overpay tax and file a tax return, HMRC will send you a refund once your return has been processed.
Even if you are not subject to Self Assessment (i.e., you do not file a tax return), you can still recover the overpaid tax.
We hope you are clear about how to claim a redundancy tax rebate.
At Claim My Tax Back, we provide efficient UK Tax Refund Services to UK Professionals, looking to claim the maximum amount of tax rebate.