Claiming Tax back

mynameisdave

In October or so I submitted my online Self-assessment for the tax year 2008/09 and I had £700 on allowable expenses.

As I was a bit lazy in sorting it out the 2009/10 tax year was over before this was added to my personal allowance and my tax code had another £700 added to it for 2010/11.

Before I waste 10 minutes on hold to be fobbed off I am hoping someone can tell me if I am entitled to get them to coorect my tax code back to the standard 647L (of whatever it is exactly) and pay the money owed through a cheque rebate - I assume £700 of allowable expenses means IU have paid 20% tax on £700 too much so should be seeing a £140 return.

Also, if I can get them to change the code backj and send a cheque how long should I wait before submitting by 2009/10 SA and claiming rebate on that too? Will two claims right away flag anything and cause delays while they look into it?

Thanks

fengirl_2

The amendment of your code and the processing of your SA are two different matters. You need to get your code number put back to the correct one as soon as possible because you are creating more of an underpayment the longer it goes on.
Your SA should of course be done as soon as possible if you think you are due a refund.

mynameisdave

Thanks for the help, sadly I think the fob off fear has happened aswhat I have been told on the phone contradicts the advice of the people I used to work with who have also previously worked as financial advisors

In 2008/09 I amassed £700 of allowable expenses relating to property letting, this has been added to my 2010/11 code. Originally it was 647: and it is now now 717L. This much I can understand - £700 extra allowance before I start paying tax on my income.

I have just been told my tax code cannot revert to normal (647L) and I have not 'overpaid' tax as these are expenses reflected in my tax code.

If I have overpaid I can claim at the end of the year but cannot claim 'in year'. I then pointed out this is a claim relating to the end of the 08/09 tax year and is not in year.

She then started going on about my outstanding return for the 09/10 tax year. Not sure exactly what was said for this but don't see the relevance as the claim is relating to income and tax in a different year and the return for 09/10 was a seperate issue.

In 2009/10 I have amassed another £2,400 of allowable expenses so presumably once this tax return (submitted earlier today) is processed and I add another £2,400 on to my tax code I'll be up to £9,500 I can earn tax free in 2011/12

Do I ever get to see any of this cash that I am paying out as an allowable expense or will my tax code just keep getting bigger and bigger to the point where I do not have any deductions from my PAYE taxes?

suso

mynameisdave wrote: »

In October or so I submitted my online Self-assessment for the tax year 2008/09 and I had £700 on allowable expenses.

As I was a bit lazy in sorting it out the 2009/10 tax year was over before this was added to my personal allowance and my tax code had another £700 added to it for 2010/11.

Before I waste 10 minutes on hold to be fobbed off I am hoping someone can tell me if I am entitled to get them to coorect my tax code back to the standard 647L (of whatever it is exactly) and pay the money owed through a cheque rebate - I assume £700 of allowable expenses means IU have paid 20% tax on £700 too much so should be seeing a £140 return.

Also, if I can get them to change the code backj and send a cheque how long should I wait before submitting by 2009/10 SA and claiming rebate on that too? Will two claims right away flag anything and cause delays while they look into it?

Thanks

you won't be able to say you aren't receiving any expenses and reduce your code to 647L and then claim expenses at the end of the year.

You expenses for 08/09 should be showing as a credit on your SA account (providing you didn't have relief already in your code for 08/09) Your code has been changed for this year because it is presumed that you will be receiving similar expenses this year.

09/10 expenses will trigger a code change once that return is submitted as it will be presumed that you will be receiving that amount of expenses again this year (increasing your code number again)

If you didn't have relief in your code in 09/10 then you will be entitled to refund through SA, nothing to do with your code.