Tax Refund

fattony

Hi

After waiting nearly 3 months from when I wrote a letter to the Inland Revenue asking them to apply a fixed rate tax reduction for having to supply tool and wash work clothes etc they finally responded.

They have agreed to apply this tax discount to my tax code and back date it, they calculate I'm owed approx £600 and they will change my tax code to 723L (from 640L - I think) and this tax code change will eventually pay me back the £600 over a number of months, I did ask if I could have a cheque written for this amount (Im decorating the house and could do with the cash) but they said they cant do that and have to pay me back through my tax code.

Is this correct, I feel they're taking me for a mug happily take my money over the years and when asked for it back they give you a bit each month.

Money_Grabber13579

For benefits in kind and allowable expenses, it is very common for this to be done through an adjustment of the tax code.

fengirl_2

This is bit disturbing as I understood that if you asked for a refund cheque, you got one.

fattony

it would be much more useful to have the £600 in a cheque to pay for some furniture etc, maybe I'll call them again tomorrow - is it worth it?

Money_Grabber13579

fengirl wrote: »

This is bit disturbing as I understood that if you asked for a refund cheque, you got one.

I'm not entirely sure, since I'm still a student, but from from notes, if I understand them, it's done by an adjustment of the tax code. However, there may be other rules, such as the one you mentioned above that I don't yet know about!

suso

if they have changed your code from 647L to 723L then the benefit to you is only £152 or £304 if you are a HR taxpayer (7235 minus 6475 = 760 @ 20% = 152 £ )

How long does your claim go back ?

fattony

Im not a high rate tax payer, I claimed for the last 10 years but believe they only go back 6 years as a maximum, does that help?

trevormax

This all seems wrong to me. When I was there (which was only last year) I was told if the tax payer wanted their repayment they got it. It is after all their money. We very rarely coded overpayments into a tax code and normally always just issued a cheque (even for amounts as low as £10)

The amounts you have stated don't seem correct either. As Suso has said, changing your tax code as they have will only benefit you by £152 if you are a BR tax payer. Just wondering if you have confused some of the amounts. For instance, the flat rate expenses for washing a uniform this year is £60. This does not mean you are £60 richer however, it just means you get £60 more tax free pay and being basic rate would result in you only being £12 richer.

fattony

I just told them I was an electrician, I have to buy tools, wash uniform etc and they then calculated what they owed me, the exact figure of how much they owe me I cant remember but my new tax code is 723 L

I called them again asking if I could have a cheque instead of getting a bit each month and they said they have to do it through the tax code

suso

As trevormike says - it doesn't add up.

When you get your P2 ( the PAYE coding notice) - will you post the details of what allowances they have given you and then we can look at it again.

Although you claimed for 10 years they are correct in only approving the claim for 6 years.