HELP!!! Tax rebate through tax code?

wallyboggle17

Hey everyone, just hoping someone can help me!!
I made a claim to get the tax back on the professional fees that i've had to pay over the last 6 years to work in the NHS and received a cheque a couple of days ago for £39!!! I knew that it should be closer to £2000 and today i received 2 letters - one that said my new tax code for 6 april 2008 - april 2009 will be 825L rather than my old one that was 603L and another that said that my code for april 09 - 10 will be 647L (i have changed jobs and get paid less tho so i expected my code to change next year).

Does this mean that i'll def get the £1804 back that they owe me (they confirmed this amount in the letter)? And how will i get it? I really don't understand how i will receive it when the new code will only be applied for one pay slip (as it will then be the new financial yr and therefore the 647L code) I don't get why they didnt just send a cheque for the whole lot not just £39!!

Can anyone explain this in lay man's terms if they understand it?!! I just want my money!!!

Thank you in advance
Jane x

fengirl_2

They have included your 6 year claim in this year's code number which is incorrect. You will get a refund in your next pay packet, but this will only give relief at 20%, whereas the basic rate of tax over the past 6 yrs has varied from 22% to 25%, so you are being shortchanged, as well as being denied interest on the repayment.
If you possibly can, ask your payroll dept to ignore the code change and contact HMRC to calculate the repayment properly and to send you a cheque.

Mikeyorks

wallyboggle17 wrote: »

Does this mean that i'll def get the £1804 back that they owe me

Are you sure ..... that it's a refund of £1804 that is owed? And not £1804 worth of allowances ..... which is very different. And it's looking like the latter .... if the revise to your 08-09 contains most of it.

If you've been a basic rate tax payer throughout .... then £1804 of allowances will translate (take 22% as average) into a refund of just under £400 + some supplement.

kitty1801

fengirl wrote: »

They have included your 6 year claim in this year's code number which is incorrect. You will get a refund in your next pay packet, but this will only give relief at 20%, whereas the basic rate of tax over the past 6 yrs has varied from 22% to 25%, so you are being shortchanged, as well as being denied interest on the repayment.
If you possibly can, ask your payroll dept to ignore the code change and contact HMRC to calculate the repayment properly and to send you a cheque.

The calculator HMRC are now forced to use takes into account the correct rate bands for each year any calculation is prepared for so it is very unlikely shortchanging would have happened. The calculator also shows any interest repaid (this, again, is done automatically). If the OP is unsure of why the tax code change has happened or what it contains, a breakdown of the code and any additional notes shown on the coding notice would be usefull to check what has happened...

Unfortunately, HMRC stance on previous years expenses claims has changed and anyone now claiming back things like laundry expenses, professional fees and mileage will have their current years code adjusted & any refund made through their employment. This does include any interest also due. If the taxpayer does not want this to happen they need to state on the claim that they want any repayment issued as a cheque.