Tax refund instead of tax code change

ronanmagee

Hi guys,

I got some overtime paid through in Dec which was heavily taxed and above my normal band. Yesterday I got a letter with a new tax code for 1st April. I'd much prefer to stay on the same code I'm currently on and get a tax refund as I need the cash in a lump sum to pay off some bills.

Does anyone know if this is possible and how to go about it?

Ronan

chrisbur

I think the tax notice you have received is just your normal notice of coding for next year, and has nothing to do with the tax you paid in December.

If you have paid tax at a higher band for this overtime it may well be that this is because it is due. Can you advise your tax code and basis, along with your gross and tax figures to check?

fengirl_2

You have paid tax at the higher rate this month because the tax tables which your employer uses to work out your tax assume that you are going to earn that amount every month. You will probably see a reduction in tex over the next two months - assuming the amount of overtime was not so large that it takes you permanently into the 40% band.
As chrisbur says, your new code is for the new tax year and has nothing to do with this year.

ronanmagee

Cheers guys,
Seems its just my new tax code the next year, thou apparently I owe them £24 - so they've taken off £123 @ 20% = £24 from my tax free amount. I'm not sure why this occurs. Is this due every month in FY 09/10?

I'll ring tomorrow to enquire about getting a tax refund on my over time. It didn't even get me anywhere near the 40% tax band having claiming it.

Robert_Sterling_3

chrisbur wrote: »

I think the tax notice you have received is just your normal notice of coding for next year, and has nothing to do with the tax you paid in December.

I think that too. I have just had mine.

chrisbur

ronanmagee wrote: »

Cheers guys,
Seems its just my new tax code the next year, thou apparently I owe them £24 - so they've taken off £123 @ 20% = £24 from my tax free amount. I'm not sure why this occurs. Is this due every month in FY 09/10?

I'll ring tomorrow to enquire about getting a tax refund on my over time. It didn't even get me anywhere near the 40% tax band having claiming it.

The code change will result in your tax increasing by £2 a month.

Not sure who you plan to ring about a tax refund. If you are on a cumulative code then no refund is due, if you paid 40% tax it was because it was due. If your future months' pay is lower then your tax will reduce a little as some gets adjusted to 20% tax rate but this will not happen until these payments are due. If you are on a month 1 code and paid 40% tax then you may have a rebate due and this will be adjusted when your tax code is changed to a cumulative code. I would speak to your payroll office first about this though you may have to contact the tax office.

It is impossible to tell a lot about your tax position without knowing the exact figures, as I said before, can you advise your tax code and basis, along with your gross and tax figures to check?

ronanmagee

chrisbur wrote: »

It is impossible to tell a lot about your tax position without knowing the exact figures, as I said before, can you advise your tax code and basis, along with your gross and tax figures to check?

Current code: 576L 1
Dec Pay: 2155.97 gross + 3710.50 Overtime

Tax: 1574.00
Nat Ins: 342.53
Student Loans: 415.00

fengirl_2

As you are on a month 1 code, you will not get a refund. It may be worthwhile getting the code put on a cumulative basis. If you can post or PM your pay and tax to date, we can advise.