the ESC A19 loophole and washing uniform tax relief and

thebeardrustler

i sent a letter off to HMRC about a month ago asking for tax back for washing my work clothing. i should have recieved £120 a year since 2008 and £90 for 2007-2008. i just got a cheque through the post for £50.40, when i rang the tax man to ask about the lower than expected figure i was told that as i had previously had an underpayment in tax (£300 ish from 2007) not collected in 2011 (due to the esc a19 loophole) when they finally noticed it that this was now being 'taken into consideration' and that is why i only got £50.
can anyone tell me whether when the esc a19 tax is 'not collected' do they actually write it off or do they just stop chasing it and wait until they owe you money to 'reconsider it'?
thanks,
john

jem16

thebeardrustler wrote: »

i sent a letter off to HMRC about a month ago asking for tax back for washing my work clothing. i should have recieved £120 a year since 2008 and £90 for 2007-2008.

It's not that amount you would get back, it's the tax relief on that amount. So for the years of £120 you would get £24 and for the £90 years you would get £18.

Mikeyorks

I'm afraid the figures don't add up. You don't get £120 ..... you get tax relief on £120. So it's worth £24 if you pay tax at 20% (or £48 if you pay tax at 40%).

If you applied a month ago you would just have got 07-08 (which expired 31st March)? So the total allowance would be (4 x £120 + £90 £570. Which translates to cash of £114 at 20% ...... or £228 at 40%.

So - no one has deducted £300 from it?

whether when the esc a19 tax is 'not collected' do they actually write it off

...... they write it off if they agreed the ESC A19 claim. So I think you need to look at the calculations more carefully? If there was a small underpayment they haven't previously advised because it was too small - they will take that off.

(Whoops - Jem's quicker on the keys again)

thebeardrustler

hey thanks for the replies.
i didnt realise that it was only the tax relief on the £120 i should receive, from what (little) i read about it i figured that was the sum owed. but hey you live and learn!
i didnt mean that they have taken the £300 off the amount i was owed i was just asking whether i had received a lower amount due to that being previously 'not collected' beacause, as i understood it, the tax owed by me had been written off!
i have just had a lettter with how it is worked out, doesnt mean much to me tbh but from 2009-2010 i overpaid £27.17, and with this £27.17 the total for 2010-2011 is the £50.40 i received.
as with the ESC A19 'writing off' tax owed over 3 years old does this now work the other way as nothing has been calculated before 2009.
thanks again for the help!

Mikeyorks

thebeardrustler wrote: »

as nothing has been calculated before 2009.

As in my last post - if you applied a month ago you should have crept in to the 07-08 allowance (if you were entitled to it). You can only go back to 08-09 now.

The P800s you have should show the years (they arrive separately with a max of 2 in an envelope). The total refund is on the last year calculated - with a bold '16' to the right of it.

thebeardrustler

when i rang up HMRC before applying i was told that i could claim back to 2007 (when i started my current job) and so my letter was sent on the 11th of march. i did get the p800s from 2009-2011. and the final figure was the £50.40 with a 16 next to it.
i didnt get any other years p800s but the most recent stated the rebate i got so i will assume that i wont get anything for the previous years.
i have received a new tax code for 2011-2012 so i shall assume that this years allowance will be sorted with my next wage?

Mikeyorks

thebeardrustler wrote: »

i did get the p800s from 2009-2011. and the final figure was the £50.40 with a 16 next to it.
i didnt get any other years p800s but the most recent stated the rebate i got so i will assume that i wont get anything for the previous years.
i have received a new tax code for 2011-2012 so i shall assume that this years allowance will be sorted with my next wage?

If you applied before 31st March then 07-08 should have been included - if you were entitled to it.

2011-12 should also be in the cheque figure, as it's too late now to get that within pay. The tax year ended 5th april. The revised coding should be for 12-13? If you've got the years right - then HMRC have completely screwed it up.

thebeardrustler

i received a letter with my new tax code dated the 11th march (same date i sent the letter to them?) stating my new tax code for 2011-2012, so i just assumed that this will be done via my PAYE in my next wage! i also got my new tax code for 2012-2013 at the same time.

Mikeyorks

thebeardrustler wrote: »

i received a letter with my new tax code dated the 11th march (same date i sent the letter to them?) stating my new tax code for 2011-2012, so i just assumed that this will be done via my PAYE in my next wage! i also got my new tax code for 2012-2013 at the same time.

Ah ...... then the 11-12 'refund' should have been made with March pay. Provided your employer got their copy in time to include it in the payroll run? Your payslip should tell you if the new code was used?

For 12-13 ........ the reduction in tax will be phased across the whole year.

dori2o

Mikeyorks wrote: »

If you applied before 31st March then 07-08 should have been included - if you were entitled to it.

2011-12 should also be in the cheque figure, as it's too late now to get that within pay. The tax year ended 5th april. The revised coding should be for 12-13? If you've got the years right - then HMRC have completely screwed it up.

If the P2 (coding Notice) was dated before 06/04/12 then there is every possibility it is for the 11/12 tax year. Codes were being issued to taxpayers right up til close of business 05/04/12 for the 11/12 tax year.

11/12 can only be included as part of the calculation IF they have received the p14 from the employer. There's very few posted on the records at the minute. Only seen 2 or 3 myself.

11/12 will be reviewed automatically from June/July time.

Having issued the coding notice for 11/12, the system now knows that the taxpayer is due to receive an allowance for laundy and it will be included in the tax calculation automatically once it is done.

thebeardrustler

Mikeyorks wrote: »

Ah ...... then the 11-12 'refund' should have been made with March pay.
- yes i have checked and i did have the new tax code on my march wage. i never thought to check that tbh!

so, in your opinion is it worth trying to pursue the rebate from years 2007-2009 or will i likely get nowhere at all with it?