P87 claim 2007/2008
Stev0_2
Posts: 5 Forumite
in Cutting tax
Hi,
First post so bear with me please.
Just after some information really.
I have just received my PAYE coding notice for 2008/2009, 870L which replaced the previous years of 882L
I completed a P87 for the 2007/2008 tax year and posted this off to HMRC along with my P60 for the same period. I enquired today as to when i would receive my payment/cheque and was told i would not be receiving anything as it had been worked into my new code. I completed a P87 for tax year 2006/2007 which was very similar to this years claim. 14525 business miles and the relief on £3268.75, which worked out at £745.42. I received a cheque for that amount around 2-3 months later. In 2007/2008 I had done 14305 business miles in total and the relief on £3268.75, which worked out i was entitled to a repayment of £719.13.
Have i missed something here? Why are they telling me i will not be receiving a cheque?
On my PAYE notice it does break it down but i dont really understand it that well.
Here is how we worked out your tax code:
Your personal Allowance £5435
Job expenses £3268
a tax free amount of 8703
It also states in the notes that "we have included £3268 because you have previously claimed that amount against tax. We will carry on including this in your tax free amount unless you tell us it has changed".
Any help or guidance would be appreciated before i try contacing the tax office again tomorrow.
First post so bear with me please.
Just after some information really.
I have just received my PAYE coding notice for 2008/2009, 870L which replaced the previous years of 882L
I completed a P87 for the 2007/2008 tax year and posted this off to HMRC along with my P60 for the same period. I enquired today as to when i would receive my payment/cheque and was told i would not be receiving anything as it had been worked into my new code. I completed a P87 for tax year 2006/2007 which was very similar to this years claim. 14525 business miles and the relief on £3268.75, which worked out at £745.42. I received a cheque for that amount around 2-3 months later. In 2007/2008 I had done 14305 business miles in total and the relief on £3268.75, which worked out i was entitled to a repayment of £719.13.
Have i missed something here? Why are they telling me i will not be receiving a cheque?
On my PAYE notice it does break it down but i dont really understand it that well.
Here is how we worked out your tax code:
Your personal Allowance £5435
Job expenses £3268
a tax free amount of 8703
It also states in the notes that "we have included £3268 because you have previously claimed that amount against tax. We will carry on including this in your tax free amount unless you tell us it has changed".
Any help or guidance would be appreciated before i try contacing the tax office again tomorrow.
0
Comments
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They've done the same to me - it's their standard practise.
I don't get what you're asking?
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Well i received a cheque for my 2006/2007 P87 claim for £745.42, according to my little excel doc which worked it out correctly to the penny, i am owed £719.13 for the 2007/2008 P87 claim. HMRC now say i will not receive a cheque this time..
Is this correct? surely it cant be, both claims were very similar but now im told i wont be receiving any payment0 -
might be that you're claiming in a different part of the tax year - if it's early then they adjust your code. later on maybe they send cheques as it's too much faff to change your code for just a few months 0
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Did you ask for a repayment?0
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Don't recall asking for a repayment, just done as i had done on the previoue tax years claim, completed the forms, sent them to HMRC and the cheque came few months later.
Is it worth calling tomorrow and asking for the repayment?0 -
I called North East Metropolitan HMRC and apparently it is still being processed now, completely different story to what another advisor told the previous day...:mad:0
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Whilst the figures vary each year we are all entitled to a personal allowance of something over £5,000. 2007/08 was £5225 and most of us had a PAYE code of 522L
For 2006/07 you probably had a coding of 500L or thereabouts and when you claimed you expenses you got a rebate.
For 2007/08 it looks like they included an estimate of your allowable expenses in your coding because Mr Average would have had a coding of 522L. You had a code of 882L which represents allowable expenses of (882- 522) *10 = £3600.
Your actual allowable expenses for 2007/08 were £3268.
So it now turns out that that your coding for 2007/08 allowed you (3600 - 3268) = £332 expenses above what you were entitled to. If you are a basic rate taxpayer you have underpaid £332 @20% = £66.40.
It looks to me that they have let you off the £66.40 because it would cost more to formally determine the underpayment and collect it from you than that.
If you push this with HMRC they will have no choice but to make a formal assessment and charge you the £66.40.
As a former taxman I normally advocate that you should talk to HMRC but in your particular situation I suggest you drop it for the time being. If you can’t follow the logic of this post or if I have got something wrong, come back here and we can sort it out.0 -
Thanks for that Jimmo, I understand it a lot better now.0
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