Can you claim back £100s of tax?

Former_MSE_Guy

This is a checklist to see if you've overpaid £200 million+

Does the taxman owe you money? It won't come knocking, you'll often need to ask for a rebate. Now's the perfect time to check for the last (2008-9) tax year, which ended in April, and up to 6 prior, as you've still enough time to sort it before returns need filing at the end of January. Here's the checklist...

• On a low income with savings? 20% tax is automatically deducted from savings interest (except untaxed ISAs). Yet everyone's allowed to earn £6,475 (£6,035 in 08/09) before paying tax (up to £9,640 for over-65s), so if you didn't hit that, claim back savings tax (see the Savers' rebates MSE News story).
• Higher rate taxpayer paying into a private pension? You automatically get a 20% tax rebate on contributions, but higher rate taxpayers are due a 40% rebate and must claim the extra cash themselves (more in the Savers' rebate story).
• Do your kids have savings? Kids too can earn £6,475 before paying tax, but they rarely hit it so most aren't taxpayers. For savings interest, if you signed an R85 form, no tax is taken off, if not ask for a rebate (more in the Children's Savings guide).
• Self employed low earner? If you earn under £5,075 a year you may have overpaid National Insurance; see the DirectGov site. If you made a loss in a tax year, you can currently deduct it from the previous 3yrs' profits and reclaim some tax paid (see the HMRC website).
• Charity-giving higher rate taxpayer ? If you donated via the 'gift aid' scheme, charities reclaim 20% tax, but higher rate taxpayers can reclaim a further 20% or donate it (see the Charity Giving guide).
• On an emergency or wrong tax code? This happens when your employer has limited info on your past earnings and it often means you overpay tax (see the DirectGov website).
• Did you stop working mid-tax year (including students)? Deductions usually assume a full year's work, so if you stopped early, it's likely you've overpaid (see HMRC website and Student MoneySaving guide).

These are just a flavour; there are many others too, such as having more than one job. If anything out of the ordinary's happened, checking what you're due. The Income Tax Checker gives a rough idea.

sueward

what do you do if you cant get them to refund overpaid tax? My husband retired last year and has been back and forward with the tax office for months now but when we phone theres always an excuse - new computer system caused backlog, staff off sick, the person who is dealing with it is away from their desk etc. He even had a letter that said they would get an answer by 17th October - they didnt keep their promise.
We have verbal confirmation that they have everything that they need (were waiting for P60 from Pensions but they have had them since June) but we cant get the refund (so far). Its even more frustrating because I got my refund in two weeks.
What can he do?

fengirl_2

Make a formal complaint in writing to the District Inspector (Im sure they are not called that now, but it will work). Be polite but firm. Quote NI number/reference. If still no joy, go up one level to the regional manager.

soozer

I'm having a similar problem to sueward. I overpaid tax last October and wrote to my local tax office during the first week in May, enclosing all relevant documents/forms.

I was told there was an 8-week delay due to a new computer system being put in place, so was prepared for this. However, after receiving my documents back in late July I had heard nothing further in late August so gave them a call.

I have been making fortnightly calls since, and have been promised on five occasions that the rebate will be with me within 14 days. It's now 11 weeks since they first said the rebate would be with me within a fortnight. Every time I phone them I'm told it's been passed on to another department, but that they can see my overpayment clearly on the system and can see no reason why I haven't received this yet.

Sallysu

see website www.

hmrc.gov.uk/dealingwith/complain.htm

(sorry new user and not allowed to post with links.)

jollyme

I wanted to raise the following point about making use of your children's tax allowance. Just be careful not to put children over the age of 16yrs old into the situation where they are unable to claim income related JSA due to the fact that they exceed the savings threshold.

zzzLazyDaisy

Also, if a parent or step-parent gives their child money which earns more than £100 interest a year, this interest will be taxed as if it were the parent's own.


The £100 limit only applies to parents and step-parents. Grandparents and other adults who give money to children are not liable to pay the tax if the interest exceeds £100 a year.

Lokolo

zzzLazyDaisy wrote: »

Also, if a parent or step-parent gives their child money which earns more than £100 interest a year, this interest will be taxed as if it were the parent's own.


The £100 limit only applies to parents and step-parents. Grandparents and other adults who give money to children are not liable to pay the tax if the interest exceeds £100 a year.

Just to go on from this point, if grandparents and such give large amounts it maybe wise to keep a letter and such from the grandparents stating the money came from them (so noone can say 'oh well I think it came from the parents).

zzzLazyDaisy

In fact the safest thing is probably for the G'parent to pay the money by direct transfer from their bank to the child's account

capehorn

I think I may have just made a very silly mistake.

I filled in an R85 to claim back tax earned on interest of the year 08/09. I've just realised that I could have claimed an additional £80 on another savings account that I forgot all about. Can I fill out another R85 or can I only put in one claim form for each year?

Thanks.