Overpaid tax - is it really too late to get it back?

Denise_C

I've found out I've been paying too much tax. The HMRC office have very quickly sent me a cheque (from 2008-2012) to rectify the problem - but I think their records have been wrong further back than that.

I'm a PAYE employee but, they had me down as receiving investment income, which they've been taxing me on....even though I haven't had investment income.

I want to find out why - and how long this has been going on but they say I can't as I can only go back to 2008 (although they have stated that if I'd underpaid tax they could still get me to pay them - it just if they owe me it's tough).

Is this really right. If they've muddled up my records (and I don't know how I could have known they had) is it really impossible to appeal?

I feel I pay so much tax already - that to have overpaid and have no redress seems so desperately unfair.

PrincessLou

Why have you waited so long to reclaim the tax? Especially as you want to claim back overpaid tax that was paid more than 4 years ago...

Caz3121

Denise_C wrote: »

If they've muddled up my records (and I don't know how I could have known they had) is it really impossible to appeal?

If you have only been paying tax through your PAYE income and they have been taking too much this will be due to an incorrect tax code. You receive a notification of the tax code that will be applied to your income (sent to your employer to use) on an annual basis with a breakdown of how this figure was calculated.
When these are received is the time to query

Wywth

Denise_C wrote: »

I've found out I've been paying too much tax. The HMRC office have very quickly sent me a cheque (from 2008-2012) to rectify the problem - but I think their records have been wrong further back than that.

I'm a PAYE employee but, they had me down as receiving investment income, which they've been taxing me on....even though I haven't had investment income.

I want to find out why - and how long this has been going on but they say I can't as I can only go back to 2008 (although they have stated that if I'd underpaid tax they could still get me to pay them - it just if they owe me it's tough).

Is this really right. If they've muddled up my records (and I don't know how I could have known they had) is it really impossible to appeal?

I feel I pay so much tax already - that to have overpaid and have no redress seems so desperately unfair.

Yes it is true.

You can claim back up to four years overpaid tax, if the problem's been going on that long.

http://www.moneysavingexpert.com/family/check-tax-code#Overpaid

Interest is paltry too

Denise_C

PrincessLou wrote: »

Why have you waited so long to reclaim the tax? Especially as you want to claim back overpaid tax that was paid more than 4 years ago...

I didn't realise I was paying too much tax - I assumed my tax code was based on my salary. I didn't realise that HMRC 'assumed' there were investments that I was receiving an income on.

It wasn't until I received this year's tax code of D0 (which is horribly high) that I phoned and queried it - the lady I spoke to said that the tax code I was on looked wrong anyway. So, I sent the information across for the last four years - and yes, it was wrong, but I'm frustrated that I can't claim back what they've taken from me at source because it took me so long to find out.

Denise_C

Caz3121 wrote: »

If you have only been paying tax through your PAYE income and they have been taking too much this will be due to an incorrect tax code. You receive a notification of the tax code that will be applied to your income (sent to your employer to use) on an annual basis with a breakdown of how this figure was calculated.
When these are received is the time to query

Yes, I have been on an incorrect tax code. I don't re-call being sent a breakdown of how my tax code is calculated - if I have been and I've missed it I suppose it's my own fault. I received one this year (but it's only the code - not how it's been calculated). I'll ask them to send me a copy of the breakdowns they've been sending me - if they haven't been sending me one maybe I'll be able to protest.

agrinnall

You should have received a P2 Notice of Coding for every year that you were not on the standard tax code for that year, and it would have explained how the different tax code was calculated. You can see an example here, if you don't recognise it then perhaps you never received one, in which case it would be worth asking HMRC whether they had the right address for you at that time.

Pennywise

agrinnall wrote: »

You should have received a P2 Notice of Coding for every year that you were not on the standard tax code for that year.

Not necessarily. It's "T" codes that change every year. It's quite possible that the OP has been on an "L" code which automatically increase every year by the employer and where HMRC don't issue annual coding notices unless something other than the annual allowance changes. So, if, say, ten years ago, they coded in £5k of investment income, it's quite possible that it was an "L" code and that HMRC have never issued any P2s since that time.

To the OP, did you ever have any investment income? Maybe several years ago. If so, then it really is down to you to tell HMRC that you stopped receiving it - HMRC wouldn't know unless you tell them.

Also, did you tell them if/when you moved house? Again, if you don't tell HMRC, how can they send paperwork to your current address?

Meadows

Time limits for claiming back tax:

Tax year Tax year ended on You must claim by:
2008-09 5 April 2009 5 April 2013
2009-10 5 April 2010 5 April 2014
2010-11 5 April 2011 5 April 2015
2011-12 5 April 2012 5 April 2016

http://www.hmrc.gov.uk/incometax/correct-mistakes.htm#1

Paid too much tax through your employment or company pension

You can claim back the extra tax. HMRC calls any money they pay back a 'repayment'.
Claiming refunds for the current tax year

Tell HMRC why you think you've paid too much. If they need more information, they'll tell you what paperwork to send.
You might get a new tax code, meaning any refund will be added to your wages or pension.
Claiming refunds for previous tax years




You'll need to write to HMRC to get any refund due. Include paperwork about your earnings in the tax year you're claiming for, like:

• pay slips
• forms P60 and P45
• details of your employment - including any employee benefits you got

They'll work out how much tax you're owed and send you a repayment in the post or by bank transfer.
In most cases you'll get back the tax you've overpaid as long as you claim on time. 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.

But the onus is always on you to check your tax code and earning each year and if you think it is wrong then you need to contact them with and queries. so if you have let this go on since before 2008 then it is you that were remiss!