Tuesday, 19 Oct 2021

Is It Possible To Apply For Tax Refund With HMRC Directly?

Yes, you can apply for the Mechanics Tax refund with HMRC directly by following the steps in the below section. It helps the mechanics who have purchased tools using their cash to get the refund. Even though you are familiar with this process to a specific extend, reading this article helps you to understand more about the HMRC’s guidelines. It allows you to avoid certain disappointments and pitfalls.

Things should know about a tax rebate

  • If you do not pay the tax ever before, then you will never become eligible for claiming the tax relief or refund.
  • The tax refund is nothing but the repayment of the overpaid tax. You cannot obtain the rebate when the value is superior to the amount of tax you have paid
  • You can be able to claim a back tax refund for the tools and equipment that you have purchased in the past 4 tax years. If you tend to wait for a long time to claim the tax refund, you could lose the entitlement for the earliest years. Thus, you should never delay to make a decision
  • You can be able to claim a refund for the tools, which are mandatory to perform the duties of your occupation. Never include the expensive tools that you purchase for your hobby or personal need because it may end up at the costly trouble and mistake
  • For the valid claim, you should have incurred the expenses yourself and not been paid back by your employer. Remove the purchases that were refunded by your employer already from your claim. If you do not do this, then it is considered a scam.
  • You should need the receipt or other written document that showcasing you spend the cash for buying the tools to claim the tax relief

How to apply directly

  • As soon as you decide to apply for the tax refund, you should do all the paperwork yourself
  • Keep in mind that HMRC will accept claims through the post, not email or telephone
  • Access the tax relief for expenses of employment form from the HMRC’s site. You can download it for free
  • Once you have completed the form per tax year, return it to HMRC. The form includes a guide on how to complete it. By following the guide, ensure you perform everything correctly
  • If the expense value for the tools is above £2,500 or over in a specific tax year, access the self-assessment tax return to claim the refund
  • After filling up the form, do all the paperwork and attach necessary documents such as receipts. Submit the form and wait for a specific time to get the reply

The entire process is time-consuming and frustrating especially when you are not much familiar with the tax system. This is the major reason for many mechanics opt for the professional who provides the tax refund service. As they are highly familiar and experienced with the HMRC’s processes and rules, they ensure that your Mechanics Tax refund claim is submitted within the rules and legally.