Taxes are a drag and it’s fair to say that most of us abhor sorting them out. Whether it is business or home related, every aspect of arranging our tax payments and filling out tax forms feels rather long and laborious.
Then there’s the feeling of giving up your hard earned money to causes you might not even support. However, dealing with our taxes is not just all about paying. For many Brits, capital allowances and tax refunds mean we can rightfully receive money back from the state.
Given back at the end of the financial year, tax refunds or tax rebates are refunds on taxes when the tax liability amounts to less than the taxes paid. For example, if a taxpayer owes less in income tax than the sum of the total amount of the estimated taxes and the withholding taxes they’ve paid, and the refundable tax credits they’ve claimed, than a tax refund will be due.
There are a number of examples whereby one will be owed money back in the form of a tax refund. For example, construction workers who travel to temporary sites via public or private transport can be owed a whopping £2500.
Furthermore, buyers, leasers or improvers of commercial properties will likely be owed money through tax refunds, as the HMRC permits them to offset some of their expenditure for tax purposes. Likewise, owners and developers of commercial properties can claim tax refunds of between 25% and 45% of the property price, for any unused allowances on extensions, alterations or upgrades made to it.
A tax refund can also be claimed in the process of purchasing and agreeing a value for plant and machinery.
There are a number of specialist tax firms that can help discern whether or not you’re owed anything in the form of tax refunds, calculate how much you are owed and help you pay that money back. Just be sure to do your research on which companies are reliable and which aren’t by reading customer reviews and online articles.
It is thus important for business owners to improve their financial literacy and better understand the ins and outs of the British financial system in order to take full advantage of it.
The next time you’re paying your taxes, rather than seeing it merely as a chore and depletion of your money, seek ways by which you can gain something back from the taxman. After all, it is nothing but you’re rightful entitlement.