How is P87 paid?

wethery

Quick question but ive recently submitted a P87 for £1200. This has shown on my new code as +1200.

Some people at work have received cheques for this depending on what rate tax they are, how is it usually paid on tax code or cheque?

Cheers

BoGoF

You should get a cheque for the year you claimed. The adjustment in your code is on the basis you will be making a similar claim for 2010/11 tax year.

TM1976

Unless you ask for a cheque they nearly always adjust your tax code, sometimes they still amend your tax code even if you ask for a cheque.

They appear to have amended your tax code so you should eventually get your overpaid tax back by the end of the tax year. You don't get £1,200 just the tax on it so if the top rate of tax you pay is 20% you'll get £1,200 x 20% = £240. It your employer updates your tax code for July you'll get 4 months worth extra in the first month (4/12 x £240 = £80) in your payslip over what you get now but this will reduce to £20 per month after that until the end of the tax year.