P800 tax refund query please.

di3004

On behalf of friend who is not on the internet at the moment.

My friend was just successful in an underpayment case 2010-2011 year (P800 Tax calculation). It was found that it was employer error/mistake, so the underpayment will now be coming from the employer.

However, she is also undergoing another year of an overpayment on year 2008-09 where she overpaid by over £449 odd (HM customs sent her this notice at the same time as the 2010-2011 notice) last November 2012, and originally this was going to be used towards the deductions of the underpayment if the fault was down to her and not the employer.

She received a letter last week with a cheque attached that stated they were pleased to attach £270 in regards of the tax year above 2010-2011 and a letter of calculation was sent separately.

As she not received the calculation letter as yet, she decided to call them today (HM customs), and they said they will forward another calculation letter out, and she was told that refund she received was the amount due after sorting out the underpayment and overpayment matter, so my friend questioned about the refund being it being approx £170 lower than what she was originally stated of making an overpayment of tax 2008-09 of £449.

She now has to wait for the calculation letter, but does anyone know how this is dealt with when there are 2 different years involved, such as one overpayment and the other underpayment.

(The did previously inform her by letter that once the matter is resolved, she will receive the overpayment as stated if she is not at fault), but what she received does not match that amount she overpaid in 208-09.

Thank you on behalf of my mate.;)

AnitaPotter

These last few HM Rev have been telling be that i have under paid my tax. I have not been listening to me. Last call i had made they finally realized that it was their mistake they made at their end!! Got someone else's P60 mixed up with mine and therefore thought i earn loads of money!!

di3004

Bump, cheers in advance.;)

nomunnofun

di3004 wrote: »

Bump, cheers in advance.;)

I reckon someone with 42000 odd posts should at least get one reply!

I am fairly sure that the letter of calculation is, in fact, the P800 that you have previously mentioned. I know not of any other such indication of liability. If there is more than one year involved the previous years underpayment/overpayment is normally carried forward to the next. Look out for this as it is easily missed! Presumably when you do get this new calculation you will provide us with some details and we should be able to help further?

It does all sound a bit of a mess though!

di3004

nomunnofun wrote: »

I reckon someone with 42000 odd posts should at least get one reply!

I am fairly sure that the letter of calculation is, in fact, the P800 that you have previously mentioned. I know not of any other such indication of liability. If there is more than one year involved the previous years underpayment/overpayment is normally carried forward to the next. Look out for this as it is easily missed! Presumably when you do get this new calculation you will provide us with some details and we should be able to help further?

It does all sound a bit of a mess though!

Hi there

Thanks so much for this.;)

What I do know of at the moment, is that she received the letter over a week ago from HM Customs who confirm that the error/mistake is down to her employer and the underpayment for 2010-11 will be paid by her employer.

She did receive a cheque in the same week of £270 that states this is for the tax calculation year of 2010-2011, nothing mentioned of 2008-09, and that a calculation letter was sent separately, that she not received yet, but rang them to inform them of this, who confirmed another copy will be sent.
And that she was told the £270 is that of the refund due as they calculated 2008-09 with the 2010-2011 tax year, but nothing on the detached cheque mentioned the year 2008-09 but just 2010-11.

She overpaid £449 odd in 2008-09, so what she received is about £170 down approx.

Her post is terrible, I was going to suggest her to call into her local tax office, not sure if they will be able to help with these particular matters though. I was thinking maybe she should ask if they can track this down for the breakdown of the calculations.

Yes I will post the details as soon as she receives them, cheers so much.

nomunnofun

Yes - but watch the line overpayment or underpayment carried forward - it really is just one line! Secondly, the cheque would only detail the final year i.e. the repayment situation as at 2010/11.

di3004

nomunnofun wrote: »

Yes - but watch the line overpayment or underpayment carried forward - it really is just one line! Secondly, the cheque would only detail the final year i.e. the repayment situation as at 2010/11.

Okey Dokey, I shall let her know then, and she will come by with the details when she has them through, cheers.;)

di3004

I will for now add the details we do have, as she left me with copies of previous paper-work........of the P800 Tax calculations she received last November at the same time of 2 separate notices, 2008-09 and 2010-11.


Tax Calc 2008-09
Paye Income = £6904
JSA = £1225

Totals £8129

Income after taking away deductions £8129

Personal Allowance = £6035

Less total tax allowance £6035

Income tax is chargeable on this amount = £2094

Tax on 2094
Basic Rate @ 20% on £2094 £418.80

Tax chargeable = £418.80

Tax overpaiid £443.71

Plus Repayment Supplement (where appropriate) £6.18
Repayment due £449.89.

.................................................. .........................
2010-11

Paye income £20340 (Tax Refund 2074.20)

Totals £20340 (2074.20)

Income after taking away deductions = £20340

Personal Allowance = £6475
Less total allowance = £6475

Income tax is chargeable on this amount £13865

Tax on £13865 is:
Basic Rate @ 20% on £13865 = £2773.00

Tax chargeable = £2773.00

Less adjustments £449.89 (this is overpayment from 2008-09 they would also be using)
Less total adjustments £449.89

Tax payable b minus c (above) £2323.11

Tax underpaid (D minus A) £248.91
Tax underpaid = £248.91
...................................

Full overpayment would have been £698.80 now to be repaid by employer.
As HMRC were going to use the overpayment, that would still be due to her (£449.89)

However she received a cheque last for the amount of £270.89 and it states for I Income tax year of 2010-2011.

No mention of anything to do with 2008-09 income tax year where she overpaid.

I understand going by your post, they will only detail the final year, so its just a matter of waiting for the figures to come through now, which may explain why the difference between what she did overpay to the amount she did receive.

nomunnofun

This is extremely odd! In my day (when assessments were issued for every year) it would not to miss out a year - in this case 2009/10. I guess that we will have to wait for your new calculation

Gas_Powered_Toothbrush

If 09/10 is balanced then a calculation wouldn't have been issued.

di3004

Yes I don't think there were any issues in regards of the year in-between, they just sent her last Nov 2012 about the one she overpaid in 2008-09 and the underpayment 2010-11 where stated she received letter last week to confirm it's down to employer error/mistake and the underpayment will be coming from the employer and not her.
(And was previously told once resolved and if she not at fault, she will receive the refund of the overpayment she made from 2008-09), but the amount received as you are aware does not show that actual amount but about £170 less.

Hopefully she will receive the calculation letter any day now, fingers crossed.