Pub tax tips 2 – How to get a bigger tax/CIS refund/rebate
How to get a bigger tax refund/rebate
How to increase your tax refund? One of the the most common things we hear from some clients is that their mate ‘Dave’ at the pub had a bigger tax rebate than they did. Why are they telling us this? Because they feel that their tax refund should be just as big as Dave’s.
Why do you get a tax refund?
To first understand the the whole concept of a tax refund, let us dive into some common scenarios that create one.
- You work in the construction industry and get stopped CIS (Construction Industry Tax) tax as you go along
- You left a job in the year and had a period of no employment/income
- You earned more in the previous year and the tax you paid this year was based on higher earnings (such as the payment on account system for self-employed people)
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How to increase your tax rebate/refund
There are certain things you can do to maximise your own tax refund (or in some cases turn a tax liability into a refund). The easiest way to get a bigger tax bill if you are doing your own tax returns is to make up some more expenses!!! No we are not suggesting for one moment that any man or woman with the slightest bit of common sense should entertain this. However, this is unfortunately a tempting problem for certain individuals who do their own tax returns online with HMRC. It can feel like you are simply putting numbers into boxes when completing your own return, yet this does not make it correct. Let’s scrap that idea off the bat.
Make sure you claim all of the expenses you are entitled to. This is one of the main things you can do as a taxpayer, whether self-employed or even an employee with certain expenses to decrease your tax. For example, you may be able to make a claim for working from home and submit a proportion of your household costs as business or work expenses.
Get your business structure right. One of the single biggest ways to save tax is to make sure you are operating through the best business/tax structure to suit you (and your family’s) circumstances. This can simply be considering the pros and cons of setting up a limited company instead of running your business as a sole trader (self-employed person). Or it could be bringing your wife into the business and running it as a partnership to maximise your income free tax allowances.
Are you due a tax rebate?
If you feel you may be due a tax rebate you can apply for Cheltenham Tax Accountants to review this and make the claim on your behalf from THIS LINK.