£1500 tax rebate, is this right?!

Feanor

Hi everyone

Sorry if this is in the wrong place.
Just over a year ago I registered as self employed with HMRC, I wasn't enjoying my job and looked to do something alongside full time work with a a view to going full time.

Anyway, I started to work on this for a few months and spent around £500 on it, but then I was offered a new full time job which I love so stopped working on the self employed idea. I never got around to actually selling anything, so didn't make a profit.

I have just completed my self assesment online. I'm pretty sure I filled everything in correctly and it says I am owed over £1500. I was so shocked. Does it sound right?
If so, how do they even pay this back to you, is it every month or in one go?

Would love some thoughts.
Thank you

DevilsAdvocate1

I've no way of knowing if its right, but they refund you directly into your bank account and its normally pretty quick. My last 2 have been within 2 weeks.

D.

DavidHayton

Hi! If you are *sure* that you have filled in the SA form correctly then the £1500 will be in your nominated bank account within a couple of weeks and you can enjoy the money however you see fit. However, you seemed puzzled as to where this money is coming from. Either your employer has charged you £1500 too much in tax (£125 per month), you have claimed back £1500 on such things as professional fees and expenses that your employer has not paid in full ... or it is something to do with your self employment? Whilst it is possible to set £500 against tax, this should only reduce your tax bill by £100 (at the 20% rate) or £200 (at 40%).

I would have another look through the SA calculation if I were you. Maybe show it to someone else who fills in a SA form - it is easier to spot someone else's mistakes than your own. Remember that no human being at the HMRC will have looked at it.

Best wishes David

Feanor

Thanks for the reply.
I logged back in and had a look at the calculation in a broken down format, it looks as though I paid too much tax in my full time employment.

I'm presuming someone checks all of this before they actually give you the money right??

I'd hate to get it and it be wrong and have to be paid back later or something...

CLAPTON

Feanor wrote: »

Thanks for the reply.
I logged back in and had a look at the calculation in a broken down format, it looks as though I paid too much tax in my full time employment.

I'm presuming someone checks all of this before they actually give you the money right??

I'd hate to get it and it be wrong and have to be paid back later or something...

no its not checked at this time .. they rely on the figures you input and the computer works them out.
there may be checks agains your employers returns later

why did you pay too much tax on your PAYE income.. was your tax code incorrect?

if you want to post up the full figures I'm sure we could check to see if they are correct

Mikeyorks

Feanor wrote: »

I'm presuming someone checks all of this before they actually give you the money right??

It works on the 'process now .... check later' principle. So, as Clapton says, that isn't right.

There are legendary, and accurate, tales of family holidays in Australia on the strength of such unexpected refunds. Only for the sun tan to pale when it's realised 'net' has been put in the 'gross' column .... or similar. And not only does the refund have to be repaid but also additional tax + interest and Surcharge on the now overdue amounts!

If you have no self employed profit .... then it is likely a refund is due as you will have unused allowances for the several months gap in PAYE. But if you passed a P45 to the new employer .... any refund should have happened at that point (if in the same tax year as P45 issued).

Feanor

Thank you.
I can't believe no one checks it, that just seems crazy!
I'm not sure I feel comfortable posting the whole breakdown here, as much as I'd like to, but I just did the tax code checker and it says my tax code was correct for that year, well a difference of £5!

So if I get this money into my account, I of course won't spend it as something doesn't ring true with the amount. I thought i might get a few hundred back, in line with what I spent but not this much.

The system seems bonkers, how do they then find out if its wrong?

Also, now I am not doing the self employed part and just working full time, can I tell them that so I don't have to do this next year!!

Thank you, really appreciate it.

Mikeyorks

Feanor wrote: »

I can't believe no one checks it, that just seems crazy!.

It's called 'self assessment' for a reason .... up to you to get it right! But a lot are checked in background mode and based on risk rules. But you would wait months for a legitimate refund if the checks happened first.

I'm not sure I feel comfortable posting the whole breakdown here, as much as I'd like to

You're anonymous ... but your choice. The codechecker is useless to you. It's the gap between employments / P45 figures / dates that are likely to have given rise to the refund? As you imply ..... put the money on one side for a few months. Or re-consider posting your figs and someone will check them over to give you earlier reassurance (or otherwise!).

Also, now I am not doing the self employed part and just working full time, can I tell them that so I don't have to do this next year!!

You should have done so on the SA Return? Somewhere there is space for a cessation date. And that should trigger provided that's processed before the selection date for next years Returns.