Travelling on a budget?

Travelling can be an amazing experience, whilst on your trip you are likely to discover new places and new people. Every traveller has a budget and whilst its amazing how you can make your funds stretch to include places you didn't think you could afford. But did you know that if you including working in the UK as part of your trip then there is a good chance that you may be due a tax refund?

Here at Taxback.co.uk we can make it easy for you to reclaim any overpaid taxes meaning that rather than cutting your trip short you might be able to visit more exciting destinations. Imagine what you could do with an extra £1367 ? Thats our average tax rebate. Perhaps you might visit another city or even another country!

Taxback offer a free, no obligation tax rebate consultation and a low commission rate. We will take care of the whole tax rebate process from beginning to end, ensuring that all the correct forms are completed and filed with HMRC. Apply now to get your taxback!

Real time PAYE how will it work?

In less than one month the biggest change to PAYE for 70 years is due to happen. 

HM Revenue & Customs are urging employers to ensure that they are prepared to switch over to a real-time reporting.
The scheme, which comes in from 5th April, will see PAYE reported on or before the date payment is made, while changes to a person's circumstances will be made straight away rather than at the end of the financial year. It is hoped that the new way of reporting will be is quicker, easier and more accurate. HMRC is holding a week long Twitter Q&A (11 March – 15 March) to give employers the opportunity to ask RTI related questions. To take part or ask a question, follow @HMRCgovuk on Twitter and use hashtag #RTIqa

Real-time reporting has been piloted since, with more than four million individuals now reporting their pay through the scheme.
There have been ongoing concerns over how some businesses might implement the system, with ICAEW representatives in November informing MPs the requirement to report pay "on or before" the date payment is made is "at best, unrealistic and at worst, impossible", adding "the proposed rules do not take account of the real world".


Richard Burchell, owner of Burchell & Associates in South Croydon, a chiropodist with five PAYE employees already using the new RTI system, said: "We're part of the pilot and we've been using it since June last year [June 2012]. We've had absolutely no trouble at all, but it's important to have good software and support for that software.

HMRC's director-general of personal tax Ruth Owen said: "Employers can find all the information they need about the new system on HMRC's website and small businesses can download free software to help them get ready. So whatever the size of your business, wherever you are based, whatever you do - if you employ people, it's time to get ready."

Although HMRC's modern approach of using twitter to answer questions regarding RTI is encouraging, how many small businesses are actually ready for this change? Many small businesses are strugling in the tough economic market place and small business owners simply have not had time to find out how this change will affect them. Before RTI comes into force all businesses need to ensure that all the Employee information they have is up to date.

New Tax Code for 2013 What does it mean?

So what does the introduction of a new tax code mean? The basic Personal Allowance will be £9,440 and the basic rate limit will be £32,010

• The new threshold (starting point) for PAYE is £182 per week (£787 per month).
• The new emergency code is 944L.

So what does this mean to you? 2012/2013 the basic Personal Allowance was £8,105 so it means that you will be able to earn an additional £1335 per year (£25.67 per week) tax free. So anyone working in the UK and earning under £32,010 will see an increase in the amount you receive after tax.

You may or may not receive a PAYE coding notice, your employer should receive this change and it should be applied for your wages from 5th April 2013. 
 
If you have worked in the UK and have left the country before the end of this tax year then make sure that you claim back the tax which you've overpaid.

With an average tax refund of £1367 *2011/2012 average there are plenty of things you could do with that money. Perhaps your travelling? Imagine where you could go with the extra money, it could pay for an extra stopover on your trip, it could pay for you to visit another country or simply extend your trip.

Tax refund scam risk

Fraudsters pretending to be HM Revenue & Customs (HMRC)

Be aware that as January's self-assessment deadline approaches that frausters are sending out 'phishing emails' offering tax refunds.

HM Revenue & Customs (HMRC) has this year re-iterated that it doesn't send out details regarding tax rebates by email and only uses the post.

Why would you get caught out?

The scam emails are extremely sophisticated and even replicate the Revenue's web address e.g.tax.refund@hmrc.co.uk. They encourage you to pass on your bank details and push you through to a cloned Revenue website. The danger is that once a fraudster has your bank details you risk having money stolen from bank accounts or personal details being used for identity fraud.

If you require more information, HM Revenue & Customs has a security page that details known frauds http://www.hmrc.gov.uk/security/examples.htm

Taxback.co.uk recommend that if you want to find out if you are due a tax refund use our tax refund calculator and check that like us , your tax agent is a member of the Association of Tax Agents.

Paying a premium to speak with the taxman.

"The taxpayers and claimants who phone HMRC do not have a choice about whether they interact with the department. Despite some welcome improvements, HMRC has acknowledged that its performance in providing services to the public has been unacceptable.

"HMRC faces difficult decisions about whether it should aspire to meet the service performance standards of a commercial organization. It could do only by spending significantly more money or becoming substantially more cost effective."

Amyas Morse, head of the National Audit Office, 18 December 2012

Last year in the region of £33 million was spent waiting on the phone to talk with the taxman. However an HMRC spokesman said it was 'determined to deliver the quality of service to which our customers are entitled.'

So how have they managed not to answer 25% of all calls with those who did get through having to wait an average of four minutes?

Here are some facts from the National Audit Office (NAO):

• 6.5million customers waited more than ten minutes to have their call answered;
• Customers are charged a premium rate as soon as their call is connected (or left in a queue!);
• One in four calls unanswered - 74% (20million calls 2011-2012);
• Chairman of the Public Accounts Committee (Margaret Hodge) said taxpayers were getting a "substandard" performance;
• It's un-acceptable that HMRC uses 0845 number.

What can you do?

If you are due a tax refund then let us take the pain away of trying to communicate with the HMRC. We do all the hard work for you from checking your forms to managing your tax refund. Brilliantly  we then pay the money direct to your bank account where ever you are in the world.

Oh yes - call us on our freephone number 0800 071 6766.