Paye tax refund - anyone help

lowepot

Hi there, I'm new to the forum, so hope this is ok. It looks like I've been paying the wrong tax for my new job for nearly a year now. I rang the tax office, and they said they could see I was owed some tax back, and would process it. 2 quick questions :

1. I was off sick for 2 months unfortunately, and recived SSP, how will this affect the amount of tax I should be paying, bearing in mind my overall income would have been less?

2. How long after she its been processed does it take to get the refund? I'm looking to pay off a loan I've got, and wanted to pay it before the end of the month.

Hope some of you lovely people can help

Thanks

McKneff

As for the refund, how long is a piece of string. The HMRC will have to have details from your company and the details from the SSP sent from the relevant departments to enable them to work out how much refund you are due. As for time,
no idea, but don't bank on getting it before the end of the month. Its a busy time of year for the tax office.

McKneff

If you have the annual income details yourself you can work out how much you are due..

lowepot

Thanks for the reply. So that will affect the amount of tax I should have been paying if it takes me below the 40% tax bracket? If that makes sense. My gross wage is £34k, but if I take off the the 2 months ssp, it goes below £30k. So i should get a higher rebate on the tax for the year?

KiKi

lowepot wrote: »

Hi there, I'm new to the forum, so hope this is ok. It looks like I've been paying the wrong tax for my new job for nearly a year now. I rang the tax office, and they said they could see I was owed some tax back, and would process it. 2 quick questions :

1. I was off sick for 2 months unfortunately, and recived SSP, how will this affect the amount of tax I should be paying, bearing in mind my overall income would have been less?

Depends on how much you earned originally. You'll pay less tax for the time you're on SSP as you were earning less, but it's still 20 / 40% of what you earned.

They will look at your whole earnings for the tax year, and calculate what you should have paid, given your annual income. Then refund what you're owed. If you did indeed go down from the 40% bracket then you will only pay 20% on everything last year - but that won't be a huge rebate as you were on the border of the brackets anyway.

2. How long after she its been processed does it take to get the refund? I'm looking to pay off a loan I've got, and wanted to pay it before the end of the month.

I'd say no chance of that in my experience!

Depends how you've agreed to get the money back. Sometimes they will do a direct refund as a lump sum, but often HMRC will adjust your tax code for the year so that effectively you pay *less* tax this year (until April 2015) and therefore get back what you are owed that way.

If you specifically want a lump sum then call up and ask / check they're doing that, otherwise they may just process it by adjusting your tax code.

HTH
KiKi

lowepot

Thanks everyone. They said it was already on their system I was due a refund, so she processed it there and then, and said they'd send a cheque out. However I've heard nightmares on how long it can take

double_mummy

my cheque took 5 days from when i spoke to them on the phone and then another 5 to clear in the bank so no chance of getting before the end of the month i would think with only 7 working days left this month

lowepot

double_mummy wrote: »

my cheque took 5 days from when i spoke to them on the phone and then another 5 to clear in the bank so no chance of getting before the end of the month i would think with only 7 working days left this month

Thanks Double mummy. Did they say on the telephone that they'd processed it and would just send it out? Or did they have to do any more calculations etc. I simply rang them, asked them if I was due any, and she said I was, and that she'd processed it there and then?

double_mummy

while i was on the phone with them the woman said that she was processing it for me and i should receive the cheque within 2 weeks

mine was a pretty simple case my job had been emergency taxing me for the whole year when i shouldnt have paid any tax at all as i was under the threshold so it was a simple phone call and with 3 minutes i was told i would be getting my cheque