Be it returns, plans or self-assessments; managing tax affairs can often seem complex and daunting. Yet with millions of people unsure if they are paying too much tax, it is important that we are well-acquainted with the facts.
As the familiar buzz of payday excitement arrives at the end of the month, we are all looking forward to our bank accounts refilling. But how many of us have endured that heart-sinking feeling as we scan through our payslip to see how much has been eaten away by tax?
Obviously, we cannot deny the benefits that we receive by paying tax but with as many as 10 million people due a tax rebate, it is important that we ascertain whether you are paying the correct amount.
Underpayments and overpayments
Recent press coverage has been abundant with stories of overpayments and underpayments of tax. This has led to many ‘winning back’ hefty excess payments in lump sums. However it is just as important to determine if you have been paying insufficient tax sooner rather than later as you will be obliged to meet the difference.
There can be a number of reasons why you may have paid too much from the obvious ones such as emergency tax to less easily determined reasons such as unclaimed allowances.
Often there is no one to blame for tax confusions. Employees may assume that their employers are tax experts or there may be unavoidable delays or confusions with the processing of documents. However it is the employee’s responsibility to check their tax deductions and take action if they feel that it is inaccurate.
This is not just an issue for employees, many businesses (especially the smaller ones) are also paying excess amounts of tax. Investigating whether your business has been affected could save you thousands.
How do I check if I am paying the wrong tax?
With the HMRC receiving nearly 20 million calls a month, it is no surprise that trying to get hold of them can often be a lengthy process. Because of these high volumes, investigations in your tax payments can often take months to complete.
The good news is that there are other methods which can quickly and efficiently help us to distinguish whether you are owed tax. Speaking to a Chartered Accountant allows you the opportunity to discuss your tax queries and seek expert advice on your tax payments. They will be able to offer guidance and they could help you to claim back any surplus tax efficiently.