Income tax over-payment on invalidity benefit

princessd_2

Hi all!

Invalidity benefit which in 1994 changed to incapacity benefit, if claimed continuously since before 1994 did not attract income tax. I have been notified by the tax office that I had indeed been paying tax since 1992 and that they would only refund the taxes payed back 6 years from the date they wrote to me! This leaves me some 14 years of overpaid tax which they claim I cannot claim back!

Have I any grounds to appeal this as they have acknowledged their mistake by re-embersing the 6 years worth? This amounts to approx £1k per year in lost tax which is a good deal to loose as you can appreciate!

Any assistance on this matter would be very much appreciated as there must be many many other people out there in a similar situation!

Thanks in advance!!:eek:

princessd_2

princessd wrote: »

Hi all!

Invalidity benefit which in 1994 changed to incapacity benefit, if claimed continuously since before 1994 did not attract income tax. I have been notified by the tax office that I had indeed been paying tax since 1992 and that they would only refund the taxes payed back 6 years from the date they wrote to me! This leaves me some 14 years of overpaid tax which they claim I cannot claim back!

Have I any grounds to appeal this as they have acknowledged their mistake by re-embersing the 6 years worth? This amounts to approx £1k per year in lost tax which is a good deal to loose as you can appreciate!

Any assistance on this matter would be very much appreciated as there must be many many other people out there in a similar situation!

Thanks in advance!!:eek:

Done a little more digging and the tax is to do with my pensions as I was awarded them early due to ill health. Pensions are not taxable when in payment before 1994 when invalidity benefit became incapacity benefit. I was unaware of this until notification from inland revenue a few weeks ago. I am obviously grateful for the refund they have back dated six years but because of the guide lines that only overpaid tax can be back dated six years I am losing out big time.

Anyone got any advice on how to get the rest of the money they owe me?

princessd_2

CAB given me good advice and so now intend to write a letter of complaint and request that all previous years be looked at on the same basis as the last six. The over payment is down to the incompetence of HMRC and so let the battle begin. I anticipate a battle but will put up a good fight. Will keep you posted.