How to get a tax rebate inc Tax Code Checker

tsg20

This year I'm going to earn quite a bit over the threshold for 40% tax. In order to avoid this, I plan to pay all of my income after the threshold into a SIPP. If I do this without contacting the tax office, my understanding is that I'll have to pay the contributions and the tax, and then claim the additional 20% back from them at the end of the year.

This would be a little irritating, and I've seen indications elsewhere that it should be possible to get them to change my tax code to only tax everything at 20%, if I tell them my pension plans in advance. Is this right?

sjg666

I received a letter in December (just after Christmas - lovely gift!) stating I owe HMRC £940 in underpaid tax for the year 10/11.

I checked back through my records (which I keep as this isn't the first mistake I've encountered) and they have miscalculated and I actually only owe £520.

This mistake has arisen as throughout that tax year I had 4 different jobs some of which overlapped and they accounted for one of my jobs earnings individually AND then again as part of my P60.

I wrote to them pointing out the mistake in early January and enclosed the documentation to back it up and received a "we're looking into it" letter.

March rolls around and I receive my coding notice for 12/13 showing a deduction of £940. I called HMRC and got told they were waiting for more information from my employer (as I have stated that any underpayment is not my fault as I provided all information I should have done to my employer when joining the company).

After this I wrote HMRC a letter again stating they had miscalculated and this time enclosing copies of 2 P45's and 2 Statement of earnings signed by the companies to clearly set out where the discrepancy was and can't seem to get any further!

I've called them chasing it up and I just get through to people who say they've put a note on my file (after being on hold for what I can only assume is the standard wait time of around 45 minutes per call) and someone should be in touch. They seem to be focusing on trying to reclaim money from my employer before dealing with their miscalculation which means, the way things are going, not only am I overpaying by £420 anyway they will also owe me the £209 back that they are claiming from my employer (assuming they pay up).

I'm getting nowhere by phone or post. Next time I call them to chase it up would it be worth asking for an appointment at an enquiry centre (as I live within a 5 minute walk of one) or are the staff there just basically admin people the same as the staff when you call seem to be?

I've worked out that with what I've paid so far if they can deal with the miscalculation - even if my employers don't pay what they're being asked to - my monthly payments will reduce by nearly £50 a month and I really very much could use that cash at the moment!

Any advice would be much appreciated.

daphne56

amiehall wrote: »

Presuming you earn over £8105 per year, your tax is correct. The code BR means that all your pension income is taxed at the basic rate. What they have done is give you all your personal allowance on your job and none on your pension. While you remain in full-time work, this will ensure you pay the correct tax. If this changes you need to make sure your codes are adjusted.

Hi Amiehall - The above is exactly what I am on.. I've just got off the phone to HMRC and was confused. Read what you said and its becoming clearer.

The only thing is my employer a quarter statement and it states a tax deduction and the tax code BR.

1. why am i getting tax from source (my employer) and also taxed from the tax office. The notice from the tax office says tax code for the year 6apr2012 to 5apr 2012 is 32L.

2. Yet I am also being taxed on the little pension I receive from my employers statement.

3. Also when I first received my penison in 2008 or 2009 and was told by my employer that I would have to pay PAYE on my pension, which I excepted. But subsequently I receive a letter from the tax man to say I owe them money because I wasn't taxed correctly. £541.20 i owed which was collected. Now I receive another notice from 6apr2012 t0 5apr2013 that I owed £1610.20 from previous tax year.

How come... they tried to explain but i am confused. £541.20 was paid from previous year . How is it I still owe, did they mess up with the tax code?

If you understand what I am trying to write here... please help.

thanks

jem16

daphne56 wrote: »

If you understand what I am trying to write here... please help.

It's a bit difficult to follow so could you clarify the following please.

1. What age are you?
2. What do you earn at your employer and what tax code?
3.What pension do you receive? Is it a company pension or state pension? What tax code is being used?

The P2 coding notice from HMRC - you say the code is 32L. How is it made up? The letter will tell you what deductions are being made etc.

Basically HMRC tell your employer and pension provider what tax code to use and they then deduct the tax for HMRC. If you answer the questions we could help clarify it for you.

You should also have received a P60 from both your employer and your pension provider. Can you provide the details such as taxable pay, tax paid and tax code. This might help work out what's going on with underpayments.

mandywr

I am not sure if this should be a new thread,but cannot find how to start a new thread.
I have a problem with the tax code calculator. I am retired [age 72] on a private pension and savings [taxed at source] and state pension and other income from rental [not taxed at source]. I am not clear how to deal with this in the calculator. Also my coding notice gives PAYE code 2011/12 as 38T giving me tax free amount of £385 but my pension provider was using a tax code of 429L in Feb 2102. I do fill in a self assessment form each year. Please advise.

jem16

mandywr wrote: »

I am retired [age 72] on a private pension and savings [taxed at source] and state pension and other income from rental [not taxed at source]. I am not clear how to deal with this in the calculator.

The calculator cannot deal with the intricacies of multiple income sources.

Also my coding notice gives PAYE code 2011/12 as 38T giving me tax free amount of £385 but my pension provider was using a tax code of 429L in Feb 2102.

You may well have underpaid tax then.

I do fill in a self assessment form each year. Please advise.

The SA each year will obviously make sure you don't overpay or underpay tax but at the end of each tax year. HMRC shopuld then issue a new tax code based on that SA. However they don't always seem to get it right.

Try and keep your tax code correct each tax year by contacting HMRC and giving them your estimated income for the tax year.

reddream

I think I might be owed a small tax refund but as this is my first foray into tax codes I'd like a second opinion.

I had a wage in increase so I received a PAYE Coding Notice informing me my tax code was changing to 776L from 810L (-334 for medical insurance).
However according to my wage slip I was on 720L before.
From what I can tell I should have been on 776L all along as I already had medical insurance and my salary hasn't crossed any tax band lines.

Am I correct in thinking I've overpaid tax on £500

jem16

reddream wrote: »

I had a wage in increase so I received a PAYE Coding Notice informing me my tax code was changing to 776L from 810L (-334 for medical insurance).

Your tax code does not alter with what you earn unless you happen to earn over £100k where you will lose some of your personal allowance.

For most people the reason for a tax code change will boil down to taxable benefits such as the medical insurance you mention.

However according to my wage slip I was on 720L before.
From what I can tell I should have been on 776L all along as I already had medical insurance and my salary hasn't crossed any tax band lines.

It depends on the value of the medical insurance. If that has changed that is the reason for your tax code change.

Am I correct in thinking I've overpaid tax on £500

You will be due a tax rebate which will be paid automatically as your new tax code is first used. However as we are only half way through the tax year, it won't be based on the £500 but probably around 5/12ths of that.

lkate

Rang them to get my £200 rebate. Listened to some automated voice talk a load of crap for approx 3 minutes and then she says.... "We cannot take your call at the moment" and then hung up.
Great service!

Bobby278

Hi

Does anyone know whether HMRC are still issuing the backdated refunds back to 03-04 as part of their ongoing programme following the overpayments they uncovered?

Are people still being sent refunds automatically or do they need to contact them direct?

Thanks if anyone knows anything.