Earlier Years Adjustment

mazda28

I overpaid tax for expenses for 6 years, I sent the inland revenue a letter as suggested on here. I have just received my over payment. However they have taken it off last years tax bill using Earlier Years Adjustment instead of giving the me the money I am owed. This means that instead of getting the £700+ I over payed I only got £168. Is this correct, can they do that?

Thanks for any help, as this is a bit annoying.:mad:

Mikeyorks

Needs a bit more detail?

instead of getting the £700+ I over payed I only got £168

........... although I suspect you're getting a bit confused between 'tax relief' and tax back. As the £700 + at 20% isn't far off the £168 you've got back?

A bit more detail from the P800 or whatever - would confirm / deny that?

mazda28

Basically I have overpaid approximately £120 a year in tax for the last 6 years. So what they have done is deducted that from last years income and then calculated what tax I should have paid. This then calculates to an over payment of £168. I am asking if this is ok for them to do that. As surely I have overpaid every year, so shouldn't they be giving me that back. My work colleague over paid the same as me and he got a cheque for the full over payment and not an adjustment.

Mikeyorks

Rather odd for people to be overpaying the same amount. What was it in respect of? And are you sure it's £120 overpaid - as opposed to £120 extra due in allowances? Which then turns into £120 x 20% = £24pa.

Without further detail from the HMRC document - can't really help. But if it stretches back 6 years then - yes - they do tend to accumulate it and add it to the current year. If you don't specifically ask for it to be reimbursed directly

lxpeanut

Are you sure its not £120 one year thats then been carried forward through the next few years with adjustments for under or overpayment each year? the amount you will recieve a check for is the amount on the last years p800.

ceeforcat

One question - how much were the expenses each year?