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Taxes

Claiming A Tax Refund: Agency or HMRC?

If you are – or were – an expat living in a foreign country, it’s not uncommon for you to feel overwhelmed by an entirely new tax system. Many expats who have lived and worked in the UK don’t know that they could be due a tax refund, let alone how to claim it. Here we explain the two ways to claim back your UK tax refund.

What is a tax refund?

A tax refund is a repayment of PAYE tax that you have overpaid during the tax year. You might be eligible for a tax refund if:

You’ve only worked for part of a tax year
You’ve worked for more than one employer in a tax year
You’ve had two or more jobs at the same time
You’ve been taxed on a basic rate tax code
You’ve left the UK before the end of the tax year (6 April – 5 April the following year)
You’ve been on an incorrect tax code at any point in the last five years

In order to get your tax refund, you need to claim through an agency or take the solo route by claiming through HM Revenue & Customs (HMRC). The route you choose to claim your refund depends completely on your personal preference and what works best for you.

May 12, 2014

Taxes

Quick Facts on Tax Slips

It can get very confusing when you start digging through your paperwork to find everything you need to do your personal income tax. There are many types of tax slips that you may receive, but I will just go over some of the most common ones to get you started:

T4 – You will get a T4 from any employer that you worked for throughout the year. The T4 is for employees, and it outlines how much you already paid for income tax as well as it includes information on Employment Insurance deductions, Canada Pension Plan deductions, and more.

April 2, 2014

Taxes

5 Ways To Save Money When Paying Taxes

Every year at tax time consciousness shifts toward saving money on the inevitable tax payments we make. Each person’s tax circumstances are unique, with some filers reporting by way of conventional W-2 forms and others accounting for self-employed income as required by the IRS. While each filer wants to pay his or her share; almost no one wants to make additional contributions, beyond what they rightfully owe.

The numbers aren’t set in stone until you complete the paperwork and tabulate your tax obligation. But in the meantime, saving money on your taxes requires a proactive approach, using proven methods to stay on the right track.

March 25, 2014

Taxes

Income Tax Tips – 5 Things To Bring To Your Tax Preparer

It’s that time of year again, so rather than waiting until the last minute, I recommend gathering up your documents earlier this year and beat the rush. It’s not going to be too painful, I promise. Here are some of the things you don’t want to forget about:

1. Medical Expenses – make sure you gather together all of your medical receipts throughout the year and don’t forget that you can medical mileage and meals, too, so it’s a really good idea to write up a log of your medical travel. If you paid premiums on a private benefit plan not covered by your employee, that too can be claimed.

March 15, 2014

Taxes

Filing Your Taxes For The First Time: 5 Things To Consider

There’s no doubt about it: filing taxes can be a daunting task. This is especially true for those that have never done it before. With pages of paperwork to contend with and tons of tiny blanks and boxes to fill in, you might wonder if you’re taking some kind of entrance exam. In a way, it could be considered one of many that pave the way to adulthood. But you don’t want to risk failure since it could lead to fines, an audit, or other penalties. And you need to understand which types of deductions or oversights could raise red flags with the IRS, giving them a reason to audit you. There’s a pretty steep learning curve associated with filing taxes, and you don’t want to fumble your first time out the gate. So here are a few things to consider before you send in your tax return.

Call the IRS. While it’s easy enough to download the documents you’ll need from the IRS.gov website, you might not even know which forms you need for your annual income tax filing. Luckily, the folks at the IRS are available to answer any questions you might have. There is a wealth of information available through their website, but you can also visit the nearest IRS office to talk to an agent, call their help line, or send queries by email. Best of all, these resources are available for free, and getting information from the source means you’ll get it right the first time.

March 10, 2014

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