What is PAYE?​

PAYE TaxPAYE Forms

The Pay As You Earn system (PAYE system) comes with a few forms you should get familiar with. Some of the most common ones are:

• P60: this tells you how much you've earned what tax you've paid in a given tax year. Here's why your P60 is important.
• P45: you get one of these when you leave a PAYE job. It's important if you have to prove you're owed a tax refund because you only worked for part of the year. Understand more about P45s here.
• P11D: it's possible you might be getting extra "benefits" from your work, like health cover or company cars. If you are, P11D is the form your employer uses to report them.

PAYE RebateAm I Due a PAYE Tax Rebate?

At RIFT, over 80% of our tax rebate customers claiming for travel expenses are working PAYE.

There are lots of reasons why people on PAYE can be owed tax rebates. A lot of workers assume that all their tax is being taken care of through PAYE. As a result, they're missing out on money that ought to be back in their own pockets.

For example, one of the biggest things people lose out on is travel refunds. If you travel to temporary workplaces as part of your job, you're probably splashing out on fuel, food and even accommodation costs. All of these expenses, and more, can count toward a tax refund claim.

Tax rebates for PAYE workers won’t be handled automatically by HMRC and paid back to you automatically, since they won’t know what expenses you’ve had to pay from your own pocket. While self-employed people file a yearly Self Assessment tax return to show all their profits and expenses, there’s no such thing as a “PAYE tax return”.

To get a PAYE tax refund, you need to show the taxman exactly what you’ve been spending on the essential costs of your work.

For example, he won’t know that you’ve been using your own vehicle or public transport for travel to different workplaces. HMRC won’t even know if your employer hasn’t been giving you anything toward your essential costs unless you tell them.

RIFT is the UK’s leading expert in PAYE tax rebates, and that’s why claiming with us is the best way to claim your PAYE tax relief.

It won’t cost you a penny to find out what you’re owed. The average pay-out for the average 4-year PAYE tax rebate is £3,000 - and we’ll tell you straight away if you've got a claim.

Higher Rate TaxI’m on the higher rate tax band. What does this mean for my PAYE tax rebate?

When you pay the higher rate of tax, it means you’re owed more back in your yearly tax refunds. Instead of claiming back 20% of your allowable expenses for things like essential work mileage, you’ll be pocketing 40%.

Naturally, the same rules apply to your tax refund, whichever tax rate you’re paying. The refund rules cover things like travel to temporary workplaces, upkeep or replacement of tools or uniforms and essential professional fees. All of these costs could be earning you a tax rebate of 40% if you’re earning enough to pay higher rate tax.