Has my OH now paid too much ???

picardygirl

My OH has now received both P60s for 2010/11 (he has two employers), he uses all his allowances on his primary employer, last year the code was 590L, then his second employer uses the code D0.

His total earnings from his primary employer was £40800, yet he paid 40% of everything he earned from employer number 2. I have been on the link, listentotaxman.com and it is suggesting he has overpaid by just under £1000, i know they are not completely accurate figures, but he owed tax for the previous 2 tax years and that has worked out roughly how HMRC calculated it on the P800.

So, my question is, how do we deal with this query, ring up HMRC and explain or could we get refunded automatically, if so when/how would this happen????? As we have a payment plan paying off owed tax from previous years we would rather, if we are correct, paying the overpaid tax off the outstanding tax, any suggestions the best way forward?

jem16

picardygirl wrote: »

His total earnings from his primary employer was £40800, yet he paid 40% of everything he earned from employer number 2.

With a tax code of 590L he would have been able to earn £43,300 before paying 40% tax so he still had £2500 available at 20% tax on his 2nd job. As he has paid an extra 20% on that £2500 I make that £500 overpaid so not sure how you worked out just under a £1000.

So, my question is, how do we deal with this query, ring up HMRC and explain or could we get refunded automatically, if so when/how would this happen?????

It won't happen automatically. As HMRC won't have all the data yet, it is bets to write to them enclosing both P60s ( copy them first but send originals) and say that you have overpaid tax and would like to claim a refund. Remember to include any savings interest or dividend payments from investments.

You could then ask them to use the overpayment to reduce the outstanding tax bill.

picardygirl

jem16 wrote: »

With a tax code of 590L he would have been able to earn £43,300 before paying 40% tax so he still had £2500 available at 20% tax on his 2nd job. As he has paid an extra 20% on that £2500 I make that £500 overpaid so not sure how you worked out just under a £1000.



It won't happen automatically. As HMRC won't have all the data yet, it is bets to write to them enclosing both P60s ( copy them first but send originals) and say that you have overpaid tax and would like to claim a refund. Remember to include any savings interest or dividend payments from investments.

You could then ask them to use the overpayment to reduce the outstanding tax bill.

Thankyou for the information, much appreciated. The way I worked it out, and as said it was only a suggestion ...... i went onto listentotaxman, and inputted the total years earnings (from both jobs) with his tax code and it states how much tax he should have paid, therefore got a difference of £959 to what he has paid for both companies ....... when he had underpaid the prevous two years, i inputted the relevant years earnings into listentotaxman and it said pretty much the same as the P800s we received.

Will write a letter enclosing the P60s and see what happens, to get any refund would be a bonus, would rather slightly overpay each year than underpay and get hit with an outstanding tax bill.

Dont think we will have the same problem end of 2011/12 as OH pay increase will take him over the limit of £42???, so it wont be relevant next year.

jem16

picardygirl wrote: »

The way I worked it out, and as said it was only a suggestion ...... i went onto listentotaxman, and inputted the total years earnings (from both jobs) with his tax code and it states how much tax he should have paid, therefore got a difference of £959 to what he has paid for both companies

Knowing the total figures would make all the difference so I'm sure it's correct.

picardygirl

Just an update ..... after sending original P60s on 7 May, have not heard back, so today, we called HMRC and was told letter not been received yet (or dealt with), which is quite worrying!

Explained what the letter said, and the chap said, that can be dealt with over the phone, he had all the details he required, and said yes and overpayment had been made, and overpayment advice (including payment) will be sent out within 10 days, so think that means that we didnt have to send off P60s (which is a pain, as they may have been lost) !

Lets see if we get a advice note in 10 days though !