Tax code wrong since 2004 rebate quiery

MummyBigBum

Hiya

Hope I'm posting in the right place.

Ok, after coming on this site for some time, I came across the tax code calculator. I knew my tax codes where right, but always thought OH's were odd. Anyhow, after realising he had been on a different tax code which included medical insurance in which he doesn't get with his current job, it was worked out he was getting over taxed (if thats the right(phrase) £455 a year. After digging out a notification of tax code from 2006 I noticed that it confirmed this amount for medical insurance which he never even noticed was on there when it was issued.

Anyway, after pointing this out to the tax office, they have gone tnrough the years, agreed he was over taxed and have issued him a rebate. Lovely, BUT they have only given him 20% of that back. Well over 5-6 years of being over taxed this amount, surely he should get it all back, not just 20% of it? Or do I have it all wrong?

Thanks in advance.....

Dawn

jennifernil

The value of the medical insurance (the £455 per year?) is usually subtracted from the code number, and this results in you paying tax on the £455. If that is how it has been done then a refund of (approx) 20% of the £455 each year is correct.

Mikeyorks

MummyBigBum wrote: »

Or do I have it all wrong?

Afraid so. The 'benefit in kind' of £455 was taxable at the basic rate (which would have been 22% and then 20% ... if we're going back 5 years). The refund should similarly reflect those rates.

He didn't pay £455 ..... only the tax on it.

MummyBigBum

thank you. Still not grumbling, a rebate is still a rebate :-)