Tax Overpayment/Refund

Pollypocket_3

My husband received his tax code notice for 2007/08 with a code of K364, we thought great thats a bit better than the code K657 which he has been on since August 2006! On closer inspection we noticed that the car benefit was double that on his coding for 2006/07 (he has car benefit and fuel benefit on his coding)...... to cut a long story short when the p11d was submitted in July 07 for the tax year 2005/06 he had changed his company car in Feb 06 and whoever had inputted the change in details for the car had added the list prices of the two cars together!!!! As such he has been taxed on having TWO company cars since August 06. (he's good but not that good!)

Obviously he has overpayed tax since then - now got his code to K213 for the rest of this tax year and for the next tax year it is a healthier 32T.

Anyway, the question is how will he get this overpayment back and when? Automatically or do you have to apply? (i.e can I spend it yet? )

Thanks to anyone that can help.

Robert_Sterling

He must inform the income tax office of the error.
They will adjust his tax code for 2006-07.
PAYE will then take care of things if you are quick enough by putting things right in the march wage packet.

If not fill in a tax form to claim it back after 5 April 2007

ctm_2

Let HMRC know.

If I read correctly the error was in 05/06, so you will need to ask them to review the year and issue any refund.

For the current year it will be sorted by the change in code.

Pollypocket_3

Thanks, tax office already know - after spending 20 minutes trying to convince them that the code was wrong and after mentioning that I had used the on line car benefit calculator she went away to check it - and came back with the answer that the list prices had been added togther for both cars and yes I was right, coding was wrong.

Just waiting for payslip for this month for refund of overpayments.:D

Anyone reading this - it pays to check your coding - TAX OFFICE does make mistakes.

Pollypocket_3

Update.

Tax code now correct on Feb wage slip.

No refund as wages department didnt take the M1 code of his tax code which is stopping his refunds!!. :mad:

All sorted today - expecting 800 pounds back in March