Tax rebate, employer misinformed me?

tubie22

Hello,

I started a new job in September 2012, one that I am still currently in. I was put on an emergency tax code for the first 2/3 months and ended up paying £220 too much in tax (I'm only part time so usually don't pay any tax, or very little).

I asked my employer about the tax code at the time and they said I would get the money back in my April or May 2013 wages automatically and didn't have to claim anything etc. I phoned the tax office today to ask when I should expect to receive it and was told I'm not entitled to claim it back because my employer has put me on a non refundable tax code so I dont have the right to claim any tax back.

I really needed the £220 that my employer assured me I would get in my wages, as I;ve just moved and need new bits and pieces.

What/ who is correct? Was my employer wrong and, if so, can I take up any kind of action against them for telling me I would get an automatic tax rebate and then to be told by HMRC that I'm not entitled to anything and my employer was 100% wrong to tell me otherwise.

Please help, ASAP, as about to go to work and don't want to bring it up with employer angrily if they are right.

thanks

Bailey101

What tax code are you on?
Did hmrc definitely say it was a non-refundable code, as tha doesn't sound right at all.
Did you complete a p46 when you started your new job, and which box did you tick in the employment status question?

tubie22

Currently I'm on 810L and that's fine, I dont pay any (or very little) tax each month. Off the top of my head I think I started on 0T as my first tax code, which my employer told me was an emergency tax code. So one month I earnt, eg £500 but £100 was taken as tax. My employer said I would get this all back automatically.

I was on JSA before I got this job, and they sent me a P45(?), to give in to my employer when I started the job, which I did. I'm not sure about P46, it may have been that that the jobcentre sent me and I gave in, or I may have filled on in, I honestly dont remember.

The thing I want to know though is was my employer in the wrong to tell me this? The tax man said I can claim anything back once I get a P60, but isn;t that what you get when you leave a job?

tubie22

yes, the tax man on the phone said my employer has put me on a non refundable tax code which has apparently come straight off the thing the jobcentre gave me to hand in to new employer. he said I am only entitled to claim anything back once I leave the job, whereas my employer said I should get it back automatically.

would it show on my payslip that I got a tax rebate ( would it say 'tax refund' or would it just be added to the total amount without an actual breakdown of what the amount is?

dancingfairy

Normal sequence of events would be:
1) you or your employer get in touch with HMRC and HMRC realise tax code is wrong.
2) HMRC tell your employer to use a new tax code.
3) If it is a normal/regular tax code that is done cumulatively through the year then it will self-correct. This only applies up to March. If it doesn't come back to you before March then because you are in a new tax year you have to write to HMRC and request the overpayment back manually.

That's what normally happens and how the process generally works.
As we are past the end of the tax year I suggest you write to HMRC and enclose your P60and any other details you have - ie P45 from a previous job etc and explain to them that you think you have overpaid tax and ask them to check it out for you.
You also need to try and make sure you are on the right tax code going forward for this tax year.
Best of Luck
df

dancingfairy

A p60 is an end of year statment to show how much tax you have paid that tax year in that employment .
You need to add all your 'earnings' (including benefits) together and work out how much you have earnt. You will be taxed at the normal rate (20%?) at anything over the threshold.
df

dancingfairy

P60 - end of year tax statement
P45 - what you get when you leave your job
P46? - what you fill in when you haven't got a P45 to hand to your new employer. This is the one where you tick the box to say whether it is your only or main job etc.
df
Edit: I believe when you get your tax code sorted it normally comes back to you so perhaps your employer believed they'd passed the correct info on to the tax office and thought it would get sorted before the end of the tax year? It also sounds a bit like you've got your wires crossed with the tax office as well - in terms of how to reclaim the overpayment.

tubie22

dancingfairy wrote: »

P60 - end of year tax statement
P45 - what you get when you leave your job
P46? - what you fill in when you haven't got a P45 to hand to your new employer. This is the one where you tick the box to say whether it is your only or main job etc.
df
Edit: I believe when you get your tax code sorted it normally comes back to you so perhaps your employer believed they'd passed the correct info on to the tax office and thought it would get sorted before the end of the tax year? It also sounds a bit like you've got your wires crossed with the tax office as well - in terms of how to reclaim the overpayment.

My employer had me under the impression that I didn't have to do anything to claim it back, that it would be automatically put into my wages in April, because April is the end of the tax year. I am useless with tax and forms and all that, I just want to know if my employer was wrong to say this and if there's any action I can take against them?

Dazed_and_confused

I think Dancingfairy has explained what you need to do, from other MSE posts having your copy (part 1A) of your P45 from your job seekers claim will be crucial to sorting out the refund with the tax office.

As I think you now understand your employer cannot and will not refund any tax deducted last year only the tax office can do this now the tax year has ended.

Also, 0T is NOT the emergency code, 810L was the emergency code last year.

It sounds like your employer is not the best with tax as you are yet again on the wrong code. In your post from 10:28 you say you are currently on 810L. Whilst not impossible it would be highly unusual for someone with no complications like a company car, tax debt etc to be on this code today. Most people will be on 944L and you should be on this code if you were on code 810L at the end of March 2013.

Dazed_and_confused

tubie22 wrote: »

My employer had me under the impression that I didn't have to do anything to claim it back, that it would be automatically put into my wages in April, because April is the end of the tax year. I am useless with tax and forms and all that, I just want to know if my employer was wrong to say this and if there's any action I can take against them?

Yes your employer was wrong, they can only repay tax during the year, not after it has ended. Once ended HMRC deal with any refunds that are due.

They may have misinformed you but you will still get any tax you are due back eventually - what action do you think you can/should take against them? If I were you I'd concentrate on getting all the info you need to claim your refund from HMRC and also ask your employer why they have you on (what looks like) the wrong code now

anamenottaken

dancingfairy wrote: »

A p60 is an end of year statment to show how much tax you have paid that tax year in that employment and any previous employment or JSA notified on a P45 .

..........................

Although the tax year has ended, your employer may not give you your P60 until the end of May (although is able to do so as soon as the tax year is ended).