Can I reclaim Income Tax if my earnings didn't exceed my personal tax allowance

Swiftkidd

Hi,

Firstly this dates back to 2010 but I have the P45 & P60 forms and according to my P45 my 'Total pay to date was £6018.25' and 'Total tax to date £663.60 also stated is the tax code at leaving date which was 647L. (£6470)

It doesn't actually say when I started work but I believe it early to mid February 2010 and left 13th August 2010. I didn't work or receive any state benefits until 24th September 2012 which was when I was re-hired at the same company.. I've now left again but I worked a little over 3 months earning just over £4.000 and paid zero tax accept National Insurance. My tax code was 810L

Can I reclaim that £663.60 back as I didn't exceed my personal tax allowance or doe's it not work like that ?

Thanks

Meadows

Personal allowance 2010/11 £6,475, so any earnings below that you should have claimed back either when you finished work or at the end of that tax year.
Really surprised you have left it over two years to query this, you need to contact the tax office to see what you are entitled to claim back (never rely on them to do it for you, you are responsible for keeping on top of your own tax).

Time limits for claiming a tax refund through PAYE

The time limits for claiming a refund are shown in the table below. If you don't make a claim within the time limit you'll miss out on any refund due.

http://www.hmrc.gov.uk/incometax/overpaid-thro-job.htm
Time limits for claiming back PAYE tax

Tax year ended 5 April 2011 You must claim by 5 April 2015

cotswoldaccountant

Meadows wrote: »

Personal allowance 2010/11 £6,475, so any earnings below that you should have claimed back either when you finished work or at the end of that tax year.

HMRC will not normally repay an overpayment of PAYE tax until the end of the tax year, in case you start earning again in that same tax year. So it wouldn't have been worth making a claim as soon as you left work.

Swiftkidd

Meadows wrote: »

Really surprised you have left it over two years to query this, you need to contact the tax office to see what you are entitled to claim back (never rely on them to do it for you, you are responsible for keeping on top of your own tax).

So I should be able to claim back the entire sum assuming all the data is correct on my P45 ?. £6018.25 spanning a 7 month period seems a little low but even so my total income did not exceed £7000 so I'll be able to claim at least some back. As for taking so long I'm fairly new to the tax system and it isn't exactly upfront and all laid out in a nice information pack for people (excluding the internet).

I did look into it once before with tax calculators but it is only now I have found P45 & P60. Worrying about tax rebates when you've left employment is probably not at the front of most peoples minds or it certainly wasn't mine and I assumed if I had overpaid it would eventually straighten it self out by paying less tax in the future ?

Besides their expensive computer systems that analyse for discrepancies & errors in people overpaying and underpaying should have flagged this. Phoned & apologize then popped the cheque in the post,

00ec25

yes you can claim but be aware that you7 7 month periods spans 2 tax years so you will have to give 2 lots of earnings and tax paid

your P60 up to 5 April 10 will show that tax paid for 09/10 and total earnings that tax year , if that is still <£6475 and you paid tax that year then you are entitled to a refund?

from 6 April 10 - Aug 10 your P45 figures will be the basis of your claim

CLAPTON

I would suggest you phone thenm up; usually massively quicker than writing
try first thing in the morning or early evening

if they require any of the documents make sure you keep copies.

and yes you should get back all the 663 and they may refund this year's tax if you give a good reason why you won't do any more work this tax year

[Deleted User]

Hi,

Swiftkidd wrote: »

Hi,

Firstly this dates back to 2010 but I have the P45 & P60 forms and according to my P45 my 'Total pay to date was £6018.25' and 'Total tax to date £663.60 also stated is the tax code at leaving date which was 647L. (£6470)

It doesn't actually say when I started work but I believe it early to mid February 2010 and left 13th August 2010.

This covers 2 tax years, 6/4/09-5/4/10 and 6/4/10-5/4/11, so had you any other earnings in tax year 09-10?

I didn't work or receive any state benefits until 24th September 2012 which was when I was re-hired at the same company.. I've now left again but I worked a little over 3 months earning just over £4.000 and paid zero tax accept National Insurance. My tax code was 810L

Can I reclaim that £663.60 back as I didn't exceed my personal tax allowance or doe's it not work like that ?

Thanks

Swiftkidd wrote: »

I assumed if I had overpaid it would eventually straighten it self out by paying less tax in the future ?

You paid no tax in your second term, so that may've been catch up.

If you've got all the figures try this wee gadget for the different years, it'll give you an idea of what you should've paid, nevertheless you will still need to contact HMRC.

jem16

[Deleted User] wrote:

You paid no tax in your second term, so that may've been catch up.

It wouldn't have been catch up. The overpayment happened mainly in tax year 2010/11. The second term was in 2012/13. No tax would have been taken in that second term as the OP had unused allowances from April 2012 to start of work in September 2012.

nomunnofun

cotswoldaccountant wrote: »

HMRC will not normally repay an overpayment of PAYE tax until the end of the tax year, in case you start earning again in that same tax year. So it wouldn't have been worth making a claim as soon as you left work.

I am afraid that this is completely incorrect - a form P50 exists specifically for this purpose.

http://www.hmrc.gov.uk/pdfs/p50.pdf

agrinnall

nomunnofun wrote: »

I am afraid that this is completely incorrect - a form P50 exists specifically for this purpose.

http://www.hmrc.gov.uk/pdfs/p50.pdf

"Completely incorrect" is rather overstating the case. P50 is only useable in very specific circumstances which won't apply to most people (although in fact probably would have applied to the OP in this instance).

nomunnofun

agrinnall wrote: »

"Completely incorrect" is rather overstating the case. P50 is only useable in very specific circumstances which won't apply to most people (although in fact probably would have applied to the OP in this instance).

Fair enough - I remain if the view that 'HMRC will not normally repay until the end if the tax year though' is incorrect and this statement can only misinform those who would be entitled to make such a claim.