PAYE tax rebate

TheTrainDriver

Hi,

My OH was working at the start of the 08/09 tax year but gave up work in August 08 to have our first baby.

According to her P45 she earnt £6726.92 and paid £892.00 in tax. Her tax code was 543L. She did not work for the rest of the year.

She phoned up the tax office and they said she wasn't due a rebate but we figure that she had a taxable amount of £1287.92 giving a total liability of £257.58 meaning she's overpaid by £634.42.

Could anyone confirm this is right or wrong and if it is right how do we go about claiming this money back?

Many thanks,
Nathan

D1zzy

TheTrainDriver wrote: »

Hi,

My OH was working at the start of the 08/09 tax year but gave up work in August 08 to have our first baby.

According to her P45 she earnt £6726.92 and paid £892.00 in tax. Her tax code was 543L. She did not work for the rest of the year.

She phoned up the tax office and they said she wasn't due a rebate but we figure that she had a taxable amount of £1287.92 giving a total liability of £257.58 meaning she's overpaid by £634.42.

Could anyone confirm this is right or wrong and if it is right how do we go about claiming this money back?

Sounds about right to me - I had a similar situation, left work in August last year. Filed my return online on Sunday and got a refund today.

trevormax

TheTrainDriver wrote: »

we figure that she had a taxable amount of £1287.92 giving a total liability of £257.58 meaning she's overpaid by £634.42.

Wrong, but in a good way.

In the 08/09 tax year, everyones tax allowance was increased in September to compensate for the removal off the 10% tax band. The standard tax code up until September was 5435 but went up to 6035.

So due to the increased tax code, your OH actually only had £691 taxable income so tax due is only £139 meaning she is due a rebate of just over £753.

Don't always believe what HMRC tell you on the phone cos in some cases you are talking to a person who might have less knowledge about taxes than my 4yo nephew.

Send a letter with P60's (if she has any) and P45's. SAy you believe you are entitled to a refund and would like them to calculate how much and issue it to you.

TheTrainDriver

trevormax wrote: »

Send a letter with P60's (if she has any) and P45's. SAy you believe you are entitled to a refund and would like them to calculate how much and issue it to you.

Thank you very much for the really detailed response. There is no P60, just the P45 so hopefully that will suffice.

Do you know where is best to send that letter, local tax office or a national address?

Thanks again

Nathan

trevormax

TheTrainDriver wrote: »

Thank you very much for the really detailed response. There is no P60, just the P45 so hopefully that will suffice.

Do you know where is best to send that letter, local tax office or a national address?

Thanks again

Nathan

Well until recently I would have said the tax office which holds your OH's employers reference as only they would be able to access your record, but since they had the computer system update, any office can access your OH's record so send to your local tax office.

Edit - forgot to say, make sure you put in the letter that your OH left employment and didn't work after that. Also, did she claim any benefits when she left like JSA? This could reduce what she is entitled to

TheTrainDriver

trevormax wrote: »

Edit - forgot to say, make sure you put in the letter that your OH left employment and didn't work after that. Also, did she claim any benefits when she left like JSA? This could reduce what she is entitled to

She didn't receive any JSA or suchlike, but she did receive Maternity Allowance later on in the tax year, would that affect it?

trevormax

maternity allowance is tax free so wont affect it.

See here for info - http://www.dsdni.gov.uk/index/ssa/benefit_information/a-z_of_benefits/maternity_allowance.htm

(in the "summary" part).

p-pincher

Marenity allowancce is not taxable. send a covering letter to advise all of your other halfs income along with the original p45(and any benefits) provide a covering letter to explain any gaps in employment. you can send it to any tax office and if your other half wants it paid direct into a bank provide full address, name, sort code and account number.

TheTrainDriver

Just a quick update to this thread. My OH received a cheque for about £750 yesterday and is well pleased.

Many thanks to all that helped :j:j