How to dispute a rebate calculation?

DebtDodger

BAA1 wrote: »

On the £8,000 using Tax Code BR all your income was taxed.
In 2004-05 there was a starting tax band of £2,020 @ 10% = £202
Then the remaining £5,980 would have been taxed at 22% = £1,315
So, you will have paid approx £1,517 in tax

Since the personal allowance was £4,745, your tax should have been:
Taxable amount - £8,000 - £4,745 = £3,255
1st £2,020 @ 10 % = £202
Remaining £1,235 @ 22% = £271
Total tax that you should have paid = £473

So, in round figures, the tax man owes you approx : £1,044

Would you believe the tax office have told me my cheque and calculation has finally been issued today and they owe me the grand total of... £280!

So I earned £8k in my year as a student, a good few thousand of which I believe I was entitled to tax free, but they say I should have paid about £1,000 of it in tax?!

I have to wait for the calculation to arrive to see the full breakdown but I'm annoyed that after 3 months chasing them up on this I'm now going to spend another few months disputing it....

Anyone have any experience of this?

dzug1

The figure is consistent with it having been calculated on the wrong tax year - 2009/10 maybe?

Mikeyorks

You've posted several P60 figures previously ..... but never disclosed what tax was deducted? It's important as BR may not have operated throughout.

DebtDodger

Mikeyorks wrote: »

You've posted several P60 figures previously ..... but never disclosed what tax was deducted? It's important as BR may not have operated throughout.

Oh right, well if I remember correctly (I don't have the P60 in with me today) but the tax for the year was about £800-900 somewhere in and around that.

Does that make it clearer? Perhaps they're right? I hate having to contact these folk and feeling a fool because I don't fully understand the calculations they're doing so I definately don't want to query the rebate if it's pretty much correct!

Thanks

Mikeyorks

If that's the case (£800-£900) then BR can't have operated throughout. Otherwise the tax deducted (and therefore potentially part refundable) would have been double that (£8k @ 22% = £1760).

Best to wait for the calculation (P800) and check the basic pay / tax back to your P60?

CLAPTON

DebtDodger wrote: »

Oh right, well if I remember correctly (I don't have the P60 in with me today) but the tax for the year was about £800-900 somewhere in and around that.

Does that make it clearer? Perhaps they're right? I hate having to contact these folk and feeling a fool because I don't fully understand the calculations they're doing so I definately don't want to query the rebate if it's pretty much correct!

Thanks

why not wait until you have the full figures in front of you and then post them up here