Help on tax code rebate

Fin66_2

Hi all

Just a forum newbie, but would like some help.
Have had tax deducted from my personal allowance for medical health care for the last 3yrs (mistakenly as i don't have this benefit anymore)
When i finally did notice this error i phoned my tax office for a rebate which would be £547 per year. The nice man said i would only receive the tax paid on that amount??, in other words only 20% of that amount.
Can this be right, or am i being sold a line?
Some sound advice please.

Fin

CLAPTON

yes you have been incorrectly charged extra tax of 547 x 20% so that is what will be refunded

Fin66_2

Blimey thanks for the quick reply Clapton.

Maybe i'm a little naive, but here's how i thought it would pan out......

personal allowance....£7475
job expenses.................£40

minus med ins..............£547
a tax free amount.......£6968

hence my tax code of 696L

I really did think i was owed the £547 per year as i was never given it, if i had surely my wages would have been in the region of £45 per month higher....not just 20% of £45.

Thanks again
Fin

Mikeyorks

No - Clapton is quite correct.

Your Coding has been restricted by removing £547 from your personal allowance. Therefore you paid tax - at 20% - on £547 more than you should have. Ergo - that is what is refundable.

The original £7475 personal allowance simply means you don't pay tax on £7475 of your income. Thereafter 20% for the next £35k.