Tax-free refers to income that is exempt from tax, meaning that no tax is owed on that amount. This can come in the form of tax-free allowances, such as the personal allowance, or from tax-free benefits, such as a company car.
A tax rebate, on the other hand, is a refund of tax that was overpaid. This can occur if an individual has paid more tax than they owed, or if they are entitled to a tax credit. For example, a taxpayer may be eligible for a rebate if they have paid tax on a benefit in kind, such as a company car, that is subsequently determined to be exempt.
If you think you have overpaid tax, you can apply for a tax refund from HMRC or here with us in TaxHelper. It is important to note that there is a time limit for claiming a tax refund, so it is recommended that you act promptly.
In conclusion, it is essential for taxpayers to understand the difference between being tax-free and receiving a tax rebate or refund. If you think you have overpaid tax, you can apply for a refund from HMRC. Understanding the UK tax system and HMRC’s role in it can help ensure that you are paying the correct amount of tax and taking advantage of any tax credits or allowances to which you may be entitled.
In TaxHelper, we help you find the tax refunds you are entitled to. You just answer simple questions that only take 15 min. to go through.
Afterwards, we report the tax refunds and you get an extra £308 paid out on average. And you only pay if you get a tax refund.
Here's how you can use a tax calculator to determine if you're eligible for a rebate and how much you could potentially receive.
When applying for a tax rebate, it is important to ensure that you have the PAYE number of your employer(s) readily available