Tax refund........have they got it right?

lexi

Hi,
I asked my tax office if i was due a refund as i was med ret. Sent off a p45 copy. I am now on IB, which hasnt been taxed. I rang the office after 7 wks & they said they would do a calculation. I recieved a cheque for £28. I being a complete tax divvy, am not sure if they are correct. my mate who told me to ask ( cos i had no idea you could) said you will prob get £400, as he had received a much higher amount 2 yrs ago. i can only think that although my IB for the last 7 months hasnt been taxed, it was when the calculation was made, as they have added this amount with my final salary. Should this be so?

ctm_2

Incapacity benefit is a taxable benefit, so yes, it should have been taxed in the calculation.

Bean_Counter

IB is sometimes taxable and sometimes not-taxable.

I believe that taxable:

Short-term (lower) rate - No

Short-term (higher) and Long-term rates - Yes

Hoddie_2

The first 28 weeks of any incapacity benefit is non-taxable. The 28 week period is reduced for each week you were claiming Statutory Sick Pay immediately prior to your claim starting. So if you were claiming SSP from an employer for 28 weeks before claiming IB, all your IB would be taxable.

You'd need to provide dates and income/tax figures for us to check whether the repayment is correct.