How to calculate 0.5% interest on a tax refund

Swiftkidd · 16 April 2013 at 12:15PM

I'm due a tax refund of £663.60 from tax year 2010-2011. I left employment on 13th August and did not earn or claim any taxable income/benefits throughout the rest of the tax year.

I'm just curious how much I've lost from inflation and how much 0.5% interest works out to be. I suspect it won't be calculated from 2010 since I'm told the issued refund payment was sent out to me by cheque in November 2011 7 months after the end of tax year which I didn't receive and have been waiting 4 months for them to re-issue me the payment.

Start employment: Feb 2010 (Paid no income tax)
End employment Aug 2010 (Paid £663.60 from start of tax year)

Revenue & Custom's claim to have "dealt with" issued refund payment when I phoned them in January 2013. They said they sent me a cheque in November 2011 which makes it 7 months after the end of tax year. So if they're "re-issuing" me payment from November 2011 I suspect it's already been calculated at 0.5% interest for a 7 month period and not 25 months that I've currently been without my money ?

Edit: It doesn't have to be accurate just a rough guess ?

lincroft1710 · 16 April 2013 at 2:44PM

Don't get too excited but 0.5% interest on £663 would be £3.31 per annum. Yes that is three pounds thirty one pence for each year, so even if they were generous over 25 months that would be about £6.90.