Put on non-cumulative tax basis - tax rebate
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LEP
Posts: 137 Forumite
in Cutting tax
I have just received my payslip for March when I get my end of year bonus and have paid about £700 more tax than I should have.
After the initial shock I can see that I am on a non-cumulative tax basis and was switched to this last Sept for no reason...I've been with this company for 20 years and my tax code is 979L.
Basically I've been taxed at 40% on a 'wedge' when the whole lot should have been at 20% as my earnings for the year are around £40k.
Obviously I need to speak to payroll for them to put me back on a cumulative tax basis but how quickly can I get this money back from HMRC after I get paid at the end of this month?
Thanks
After the initial shock I can see that I am on a non-cumulative tax basis and was switched to this last Sept for no reason...I've been with this company for 20 years and my tax code is 979L.
Basically I've been taxed at 40% on a 'wedge' when the whole lot should have been at 20% as my earnings for the year are around £40k.
Obviously I need to speak to payroll for them to put me back on a cumulative tax basis but how quickly can I get this money back from HMRC after I get paid at the end of this month?
Thanks
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Comments
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Might take a month or two as they are obviously busy at the change of tax year. Be prepared to argue for getting a repayent because they will probably try to persuade you to take it as a tax code change.0
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If they correct your tax code before calculating this months salary, and depending on how much you are due back, it might get paid to you by the company in March's wages !!
However, if it's above the threshold limit that they are allowed to repay you (I can't remember how much that is, I'm out of practice), then ring up the tax office straight away, make sure you have all your paperwork to hand (including all your payslips, showing gross pay and tax deduction figures), and be prepared to hang on the phone for a long time before you speak to a real human being.
HMRC don't move fast, it could easily be 2 months before they get their act together to refund you.I try not to get too stressed out on the forum. I won't argue, i'll just leave a thread if you don't like what I say.
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sorry, re-read and realised they have already calculated this month's salary.
Mind you, they may not have yet submitted the figures to HMRC (their deadline for that is the day you actually get paid), or they can post a correction figure to HMRC, so ask your manager/HR/Payroll dept if they can put it right before the year-end is finalised.
It is possible, but a bit awkward to do for your payroll people. But as it is their mistake .... they flipping well should !I try not to get too stressed out on the forum. I won't argue, i'll just leave a thread if you don't like what I say.0 -
Thanks for both replies.0
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They cant refund you until at least 20th of April to allow your employer to submit any changes to the end of year figures.
If you receive any taxable benefits from your employer they also wont automatically refund the tax until your employer has submitted the P11D which can be submitted any time upto 6 July.
If you want the refund quicker than it will be done automatically by the PAYE system then sign up for the personal tax account, or if you are expecting a P11D call HMRC when you know the details and they'll update the record and issue the refund.
They cannot update your code for 17/18 to give you back a refund of overpaid tax from 16/17.[SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
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sorry, re-read and realised they have already calculated this month's salary.
Mind you, they may not have yet submitted the figures to HMRC (their deadline for that is the day you actually get paid), or they can post a correction figure to HMRC, so ask your manager/HR/Payroll dept if they can put it right before the year-end is finalised.
It is possible, but a bit awkward to do for your payroll people. But as it is their mistake .... they flipping well should !
Before blaming anyone I think a few more details are needed? Why is the OP on a code of 979L. Was this the code used before the change to non-cumulative and if not what was the code? Is there any tax adjustment for a previous tax year causing this code reduction?0 -
Before blaming anyone I think a few more details are needed? Why is the OP on a code of 979L. Was this the code used before the change to non-cumulative and if not what was the code? Is there any tax adjustment for a previous tax year causing this code reduction?
I seem to remember the OP said that the code change happened in August/September. That suggests that as the code is lower than the standard emergency code, that the OP has some form of Employment Benefit which has been notified to HMRC on a P11D. These are generally processed in August/September and tax codes are updated to reflect the latest information.
If the OP's code changed because their benefit in kind increased then this would generate a potential underpayment of tax based on the reduction to the code.
HMRC always issue codes on a Wk1/Mth1 basis where a potential underpayment over a certain amount has been created. This is to prevent the underpayment being taken in one hit at the first payday where the new code is used as not everyone would be able to afford to suffer this reduction in pay. The underpayment is then collected in the next tax year.
This is not an error on anyones behalf. This is how the current system works and has done for many years.
This system will change however in the 2017/2018 tax year when the new coding system (dynamic coding) is introduced from May/June.[SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
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