Earned Income Tax Credit | Am I Paying Too Much Tax?

Am I Paying Too Much Tax?

There may be only two certainties in life: taxes and death, but with something like 33% of the working population being estimated as overpaying tax, it is worth individuals investigating whether or not they have also overpaid.Overpaid taxes can be recouped; this article looks at ways of doing this.

In answer to this somewhat very short question, ‘yes’.  But, you may be thinking, I am employed, so I pay tax on the PAYE (Pay As You Earn) tax scheme, so I can’t be paying too much tax!But you could wrongly be making this assumption.

Some accountancy companies estimate that as much as 30-33% of the working population is paying too much tax, so it doesn’t matter if you are self-employed, employed or you are on the Construction Industry Scheme, you may well be paying too much tax.  This means that 1 in every 3 people is paying too much tax and you could well be one of them!

How can I reclaim any tax that I have overpaid? well, there are basically two ways;.  You can approach Her Majesty’s Revenue and Customs and see if they can hep you to reclaim any overpaid tax.  Or you can find a good accountant to see if you have paid too much tax, or even a specialist tax recovery firm. 

Whilst Her Majesty’s Revenue and Customs may be more customer- friendly than they used to be, it is unlikely that they will fall over themselves to go through your tax records and find out if you have paid too much tax.  To be fair, they simply don’t have the resources to do this, even if they had the will to do it!Kick starting the process by putting in a lot of effort has to be done by you when initially claiming your tax back. 

So you should talk to an accountant, or do an online search for tax specialists, who often have a free calculator that you can use to ascertain whether or not you have indeed paid too much tax.These are quite easy to use, but ensure you have all your tax related paperwork in front of you.An accountant that’s good which springs to mind for e.g. is Wrexham chartered accountants, here you will get the best service ever.  You can however, do an online search for accountants in your area, again, for e.g. North Wales Accountants.  The directory will show numerous accountant companies names and from here you can choose the best.

Do not assume therefore that simply because you are on a PAYE tax scheme you will automatically be paying the correct amount of tax.  Mistakes are made and people often slip through the net, so it may well be worth your while checking out if you are due any overpaid monies and then trying to get the money back, so it is in your pocket, rather than HMRC’s.  Then all you have to do is decide just how you will spend it….

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