Tax rebate SUCCESSES

lindsayr2403

Ohhh - if someone could work out the figures - it might help us manage over this coming month !!
I can absolutely confirm this was his ONLY job...

So, his P45 until Dec 31st 2014 was
total earnings - £13866
total tax paid - £2629.80
(Tax code - BR)

P60 from last tax year - (he only worked for them from Jan 2014 onwards)
total earnings from employment - £3699.31
total tax - 738.40
(Tax code - OT/W1)

what does that mean as far as overpaying/owed anything? I don't know if that is enough information to get an idea?
thanks in advance

jem16

lindsayr2403 wrote: »

what does that mean as far as overpaying/owed anything? I don't know if that is enough information to get an idea?
thanks in advance

Ok total income for 2013/14 was £17565.31. Tax on that would normally be £1625.06.

He paid £3368.20 in tax so overpaid by £1743.14.

Now this won't be paid back in his wages next month as it's a different tax year. It should be paid back by cheque once HMRC have calculated it.

Only overpaid tax from this year will be paid back in next month's wages.

lindsayr2403

jem16 wrote: »

Ok total income for 2013/14 was £17565.31. Tax on that would normally be £1625.06.

He paid £3368.20 in tax so overpaid by £1743.14.

Now this won't be paid back in his wages next month as it's a different tax year. It should be paid back by cheque once HMRC have calculated it.

Only overpaid tax from this year will be paid back in next month's wages.

So, even though he moved employer, and started his new job in January, the overpaid tax for the whole of this year so far will come back to him in next months pay? Or will it just be the amount that the incorrect tax code has taken from him since he started with the new employer?
Will the tax office simply look at his NI number and be able to see when the wrong tax code started to be applied and then fix it from that point?
Do they simply contact his employer and tell them to put £x amount into his salary even when they weren't the ones who employed him until Jan this year....
thank you sooo much for all your help - when you ring HMRC and they just tell you they will 'investigate' then you are never quite sure what that means and what happens next.....
PS - also very sorry if these seem like stupid questions - its a new thing for me -

lindsayr2403

anyone able to shed any light on my questions above - we've not heard from the tax people yet....?

chrisbur

lindsayr2403 wrote: »

So, even though he moved employer, and started his new job in January, the overpaid tax for the whole of this year so far will come back to him in next months pay? Or will it just be the amount that the incorrect tax code has taken from him since he started with the new employer?
Will the tax office simply look at his NI number and be able to see when the wrong tax code started to be applied and then fix it from that point?
Do they simply contact his employer and tell them to put £x amount into his salary even when they weren't the ones who employed him until Jan this year....
-

In order to pay the correct tax three pieces of information are needed. The correct tax code, the total taxable pay paid so far this year and the total tax paid so far this year.
When all goes correctly it is this information that is carried from employer to employer by the P45.
When this falls down HMRC pass the details on to the new employer.
When the new employer has all the details they will include them in the next payroll run. They will now know the total taxable pay for so far this year and will apply the correct tax code which will give them a correct figure for tax due to date. This will be compared with the figure they now have for tax paid to date. If tax paid to date is higher than tax due to date then a refund of that difference is paid in that pay run. If it is the other way round tax is deducted. This brings your tax to the correct position and the correct tax is then taken from then on.

soontoberetired

I thought I might have underpaid tax (not much) but now realise that I get an allowance- £75- for my union/professional subscription fees. It's not on the MSE list of allowances that might account for slightly different personal allowances.
Might be useful for people to know.

nth2923

I had to post to say a HUGE thank you to everyone at MSE. I put my information into the tax calculator which indicated that I was on the wrong tax code, so decided to follow up with HMRC.

It appears that following a secondment from work, that my records read that I had TWO jobs. This had been on my record since I returned from the secondment in 2012. It took a lot of phone calls and waiting to resolve it, but delighted to report that I have received notification yesterday that I am due a rebate of over £2600 WOW!!:money:


I would consider myself quite good with my money following tips from this site, but I always assumed that HMRC was an institution that couldn't be wrong andeven if it were, they would surely never admit it. I would never have pursued this if it had not been for you guys.


Thanks again

John_Pierpoint

Have they sent you a calculation showing how they arrived at the figure ?

Dicker040

Hi - I am very annoyed!! HMRC have been taking too much tax off me for 10 years - I have formally requested a refund and they will only pay back 4 years. I have escalated as a complaint under 'Special Relief' but fear I will get the same response. How can this be fair?? If it was the other way around they would pursue me for everything owed through the courts. We are talking about appox. £10k here - I feel powerless to get what I see as rightfully mine back.

antrobus

Dicker040 wrote: »

... If it was the other way around they would pursue me for everything owed through the courts. ...

Actually, they would not. They would pursue you for 4 years worth of back tax. Only if they thought that the underpayment arose from either careless or deliberate behaviour would they go back further.