Paye tax overpaid

Mikey1414

Hello,

Can any one assist please - my parents have paid too much tax against their pension for the past 5-6 years - we have received the tax calculation notices back from HMRC in support - they confirm this. However it would appear that HMRC are only going to pay the tax back for one of the years - we have confirmed this with our local tax office. Please can you advise if this is correct ? Nb - in support of this we have received a cheque covering one of the years (2009-2010). If this is correct I'm minded to refer this to my MP - I cannot see how this is in any way fair....

VMT - Mike.

TM1976

Mikey1414 wrote: »

Hello,

Can any one assist please - my parents have paid too much tax against their pension for the past 5-6 years - we have received the tax calculation notices back from HMRC in support - they confirm this. However it would appear that HMRC are only going to pay the tax back for one of the years - we have confirmed this with our local tax office. Please can you advise if this is correct ? Nb - in support of this we have received a cheque covering one of the years (2009-2010). If this is correct I'm minded to refer this to my MP - I cannot see how this is in any way fair....

VMT - Mike.

If you receive a P800T the total refund due is usually the figure on the most recent one. This is because each year's is rolled into the next on the statements.

You might get 6 of these P800Ts but the only one that says how much they owe you is the most recent. The way this is expressed on the forms isn't very clear and HMR&C must waste loads of time explaining this to taxpayers.

pjclar02

Hello there

You can submit an overpayment relief claim and go back four years - you just need to write to HMRC. This link provides the details you need of what to include in your letter:

http://www.hmrc.gov.uk/manuals/sacmanual/sacm12150.htm

So you can claim back to 2007-08 as long as you submit your claim by April 2012.

Slightly in haste sorry.

Mikeyorks

Mikey1414 wrote: »

Please can you advise if this is correct ? Nb - in support of this we have received a cheque covering one of the years (2009-2010). If this is correct I'm minded to refer this to my MP - I cannot see how this is in any way fair....

As post #2 ......... you need to read the P800s more carefully. The earlier years are 'adjusted' through the successive years such that the final year has the net sum over / under paid. If overpaid (Note 16 against it) ..... a single cheque is issued.

Whilst a battery of P800s may be confusing - the accompanying Notes aren't ........ and you would find the answers in there eg ;

P800(Notes) wrote:

If the repayment covers more than one tax year, we will [FONT=Sabon,Sabon][FONT=Sabon,Sabon]send you [/FONT][/FONT][FONT=Sabon,Sabon][FONT=Sabon,Sabon]one [/FONT][/FONT]cheque which will cover all the years we have reviewed

Mikey1414

Many thanks for responding to this - one thing puzzle's me - when I add up all of the tax overpayments year on year it comes to approx £800's - the amount paid out in the cheque = £200 - approx, therefore if one cheque is designed to cover all then I don't see how this works ? To me the one cheque does not appear to cover all years overpayments ?
VMT - Mike.

lxpeanut

Its been puzzling me too but I think I've finally worked it out. If you look at the next calculation you have received in the adjustments the amount from the previous form will be there and will be added or subtracted from the final chargeable tax and so included in the tax payable. Now some years you may have underpaid slightly before that adjustment was made so by the end of the year you may not be owed as much. This is mine for example:

2005-6 I underpaid 49.28
2006-7 the 49.28 is added to my chargeable tax but I then overpaid by 46.79 that year (it must have been nearly double that before)
2008-9 the 46.79 is subtracted from the chargeable tax but then I overpaid by 94.22 that year (this was the amount I was expecting to receive)
I got a check for about £25 something for the 2010-11 tax year and that really confused me as I didn't get a p800 for that year and it didn't relate to the amount I expected. But at the start of this year they claim I owed £69.46 (which I think is wrong but they are ignoring all my letters pointing that out) and they have now issued a new tax code without that amount owed so they seem to have taken the amount owed at the end of 10-11 from the 94.22 I was owed at the end of 08-09 (what they are going to do about the money I have already paid back this year I don't know I assume I'll get that back next year).

Mikeyorks

Mikey1414 wrote: »

To me the one cheque does not appear to cover all years overpayments ?
VMT - Mike.

Suspect - as the previous post - you're not doing it right. Are they all overpayments? And are you undoing the adjustment on each year before you try adding them individually.

The easiest way is to start with the first year and then check the accumulation as it progresses. I think you'll find it's circa £200.