Income tax - can I claim it back?

Millie_Millsters

Hi Guys,

My husband died in Oct 2010 and I received his final pay packet with all the appropriate deductions in tax year 2010/2011.

I thought that was an end to it but I've just received a payment (dated 26/10/11) of back pay due to a pay award in 2010.

My question is... as my husband has obviously not had any other income in tax year 2011/2012 can I reclaim the tax deducted from this money?

It seems logical that I should be able to and every penny helps!

McKneff

It depends on his total earning in that year, if he earned £6475 and no more than that, any tax paid would be refunded. I believe you would have to actually claim it.

Write to HMRC, i believe you would have to send a copy of death certificate, I dont think they would talk to you over the phone.
Although they may answer general questions.

If you have his final salary slip, could you put up the figures on here and someone will help.

Also how much was the other payment and when was this paid.

Mikeyorks

There are two points :

• Full personal allowances were due for 10/11 ..... so there should have been a refund in that year. Did the Executor tie up the tax side and receive that?
• The recent 'back pay'. Most back pay is taxable when paid. But there are circumstances of an award (Equal Pay awards are the examples normally cited) where they are genuine arrears of pay and they should be taxed relating to the year(s) they should have been paid.

But in the regrettable circumstances - either way you should be due an element of refund. And it will be more if the back pay is taxable this year ..... as the full £7475 PA will be offsettable.

Millie_Millsters

Mikeyorks wrote: »

There are two points :

• Full personal allowances were due for 10/11 ..... so there should have been a refund in that year. Did the Executor tie up the tax side and receive that?
• The recent 'back pay'. Most back pay is taxable when paid. But there are circumstances of an award (Equal Pay awards are the examples normally cited) where they are genuine arrears of pay and they should be taxed relating to the year(s) they should have been paid.

But in the regrettable circumstances - either way you should be due an element of refund. And it will be more if the back pay is taxable this year ..... as the full £7475 PA will be offsettable.

Yes we got the rebate for last year, the executor did a great job with all the paperwork.

As I understand it, the back pay was for a pay rise that was only given to some staff last year but the courts have ordered the employer to pay it to all of them. Nothing to do with equality, more about pay grade.

Thanks for the confirmation. 20% was taken off for tax, I'll get the executor to contact HMRC for a rebate

Millie_Millsters

McKneff wrote: »

It depends on his total earning in that year, if he earned £6475 and no more than that, any tax paid would be refunded. I believe you would have to actually claim it.

Write to HMRC, i believe you would have to send a copy of death certificate, I dont think they would talk to you over the phone.
Although they may answer general questions.

If you have his final salary slip, could you put up the figures on here and someone will help.

2010/2011 already done and dusted :-)

BoGoF

It's unlikely there will be a rebate due. If the payment is treated as received in the year(s) it was due it's likely basic rate tax (possibly HR tax) will be due and that's what's been paid. You can't get a personal allowance for the year after death.

Millie_Millsters

BoGoF wrote: »

It's unlikely there will be a rebate due. If the payment is treated as received in the year(s) it was due it's likely basic rate tax (possibly HR tax) will be due and that's what's been paid. You can't get a personal allowance for the year after death.

Bah! I was getting all excited too

Mikeyorks

Millie_Millsters wrote: »

As I understand it, the back pay was for a pay rise that was only given to some staff last year but the courts have ordered the employer to pay it to all of them. Nothing to do with equality, more about pay grade.

The 'equality' bit was only illustrative - of the fact that 'back pay' needs to be quantified as to whether it is genuine arrears or not. As it is normally the date of an award that sets the tax due date as the current year. If these are genuine arrears then the tax due date could well be the year(s) the entitlement to the pay arose. In which case there may be no refund due.
You really need to qualify from the employer the terms of the award? Best of luck with it.

BoGoF

Going to gave to disagree with you on this one Mikey, on what basis would personal allowance be due in 11/12 for someone that died 10/11?

Mikeyorks

BoGoF wrote: »

You can't get a personal allowance for the year after death.

That ........ is a point I'd never considered!

So what happens if this is the usual case where the award governs the due date. Everyone else has the potential advantage of a PA ........... except.

BoGoF

If it's treated as taxable when paid (11/12) then it would be treated as income of the estate and no personal allowance is due to an estate for the period after date of death