Tax refund now I've retired

Gizasmum

jem16 wrote: »

The difference is that the OP does not currently earn enough to pay any tax so the underpayment cannot be taken that way.

How do you know that for certain? I am a glass half full person and think the question is worth putting to HMRC.

Moneystooshorttomention has nothing to lose and everything to gain.

jem16

kteirvine wrote: »

How do you know that for certain?

Simply because I know how the UK tax system works. Your tax code is made up of the personal tax free allowance plus any other allowances such as uniform washing etc. This might then be reduced by deductions such as underpaid tax, benefits in kind, state pension etc.

With the information that the OP has provided, the tax code would be ( assuming 2014/15) 950L which is made up from £10,000 tax free allowance minus £500 tax underpayment.

As the OP states an income of £8,000pa, a tax code of 950L would see no tax taken so the underpayment would never be paid off so taking it via the tax code is never going to happen.

I am a glass half full person and think the question is worth putting to HMRC.

I have already suggested in a previous post that the OP contacts HMRC if paying the £100 off in a lump sum would caused hardship issues. HMRC could then arrange to take the repayment in stages at a rate which would be agreed between both parties.

Gizasmum

jem16 wrote: »

Simply because I know how the UK tax system works. Your tax code is made up of the personal tax free allowance plus any other allowances such as uniform washing etc. This might then be reduced by deductions such as underpaid tax, benefits in kind, state pension etc.

With the information that the OP has provided, the tax code would be ( assuming 2014/15) 950L which is made up from £10,000 tax free allowance minus £500 tax underpayment.

As the OP states an income of £8,000pa, a tax code of 950L would see no tax taken so the underpayment would never be paid off so taking it via the tax code is never going to happen.



I have already suggested in a previous post that the OP contacts HMRC if paying the £100 off in a lump sum would caused hardship issues. HMRC could then arrange to take the repayment in stages at a rate which would be agreed between both parties.

I too am familiar with how tax codes work. I am also aware of Moneystooshorttomention's income/ tax allowance situation. My asking 'How do you know' was in relation to no-one can know what HMRC will say unless the question is asked. It was nothing to do with knowing how tax codes work. That's completely redundant in this case. I was only commenting on the options that may be open to her if she talks to HMRC. Positivity can achieve a lot you know

jem16

kteirvine wrote: »

It was nothing to do with knowing how tax codes work. That's completely redundant in this case.

I'm afraid we'll just have to agree to disagree.

It's got everything to do with how tax codes work and the fact that the OP's circumstances will not allow the underpayment to be taken via the tax code as yours is going to be.

HMRC and the OP may come to another agreement by claiming hardship.