Many taxes are charged by the government, from individuals and corporations. While corporations are able to pay off their taxes effectively in most cases, individuals often face the problem of being taxed too heavily. Often, poor individuals who are eligible for tax refunds are not even aware of their eligibility. This is common in the case of construction workers and other classes of individuals who have no social security. It is estimated that 180 million pounds worth of tax refunds remain unclaimed by UK construction workers. There are several items for which tax refund can be claimed – for example, for travel expenses between temporary workplaces. There are many kinds of tax refund, but most prominently, PAYE tax refund and CIS tax refunds are the most unclaimed refunds.
PAYE Tax is a withholding tax charged on income payments to employees. Amounts withheld are treated as advance payments of income tax due. PAYE tax is the amount collected by employers, on behalf of the government, from employees, as a payment of income tax on the employee’s earnings. This is one kind of tax that can attract the maximum refund. If you have been an employee with a construction firm for more than 5 years, and use your own vehicle or public transport to travel to and from work, you are eligible. People who have to incur the dual expenses of purchasing uniforms and tools, are also eligible for PAYE tax refunds. Special provisions have been made in the income tax acts of various countries in the UK, to allow such tax deductions on expenses. If you are confused about your rights, the exact refund that is due to you, or any other matter related to PAYE tax, you should visit some good websites. These websites provide information regarding tax refund policies in the UK, and the procedure for claiming tax refunds.
Another kind of tax eligible for refund is CIS tax. CIS refers to Construction Industry Scheme. The CIS rules how contractors handle payments to subcontractors in a construction project. Those working under the CIS scheme have a special right to get tax refund, for expenses such as trade purchases for the company, transportation costs etc. There is a proper procedure to claim travel expenses and other deductions via the CIS tax refund policy. Some prominent websites can help you understand and follow this procedure perfectly. The government usually sets an income bar, below which every construction work who meets the basic requirements of the policy, is eligible for refund.
Construction industry employers and tax regulation agencies are making efforts to practice tax inequality. Primarily, this is done by keeping the eligible individuals in the dark, about their refund rights. Today, the rich are receiving tax waivers and the poor are being deprived of their rights. Agencies such as HMRC on the other hand, make millions of pounds by receiving calls from people wishing to know about the tax refunds. Therefore, you must know all about the tax refunds you are eligible for, and claim what is rightly yours.