Wrong tax code - how does the refund work?

mrsvanderkamp_2

Hi

My husband has been on the wrong tax code since April and this was amended in his November salary and is now correct. However, he only received a "refund" of around £79... if I look at his old payslips and compare how much tax he paid and how much he should have paid, he overpaid by much more than £79... before he rings the tax office, I just thought I'd ask if this is usual? Will he get the tax back "drip feed" so to speak in each pay packet between now and April or should it all have been refunded in one go?

Thanks for any help.

kazwookie

I have had refunds either in a lump sum paid in to my bank account. Another year |I had it added to my tax code, so the tax code was lower.

From what I can remember I was asked which I would like.

For large amounts I have it back now, small amounts I am happy to have my tax code altered.

CLAPTON

mrsvanderkamp wrote: »

Hi

My husband has been on the wrong tax code since April and this was amended in his November salary and is now correct. However, he only received a "refund" of around £79... if I look at his old payslips and compare how much tax he paid and how much he should have paid, he overpaid by much more than £79... before he rings the tax office, I just thought I'd ask if this is usual? Will he get the tax back "drip feed" so to speak in each pay packet between now and April or should it all have been refunded in one go?

Thanks for any help.

if the tax code has been incorrect only since April (i.e. this tax year) and the tax code is now correct, then the tax should automatically correct itself via the payroll system without any action on his part.


If you would like to give some details we could provide further assistance
e.g. what was his 'incorrect ' tax code
what is his tax code now
what are his earnings to date and what is his tax to date (they should be on his latest payslip

sheramber

As he has had a repayment of tax he has not paid tax this month so what he would have paid should be added to the repayment to get the total amount of the repayment.

mrsvanderkamp_2

Hello, thank you for the replies.

CLAPTON - his old tax code was 837L and the correct one is 1000L.
His pay to date (end of October) is £20,258.40 and the tax to date is £2,883.80. The tax coded was corrected in October's pay.

CLAPTON

mrsvanderkamp wrote: »

Hello, thank you for the replies.

CLAPTON - his old tax code was 837L and the correct one is 1000L.
His pay to date (end of October) is £20,258.40 and the tax to date is £2,883.80. The tax coded was corrected in October's pay.

if he has a taxable pay of 20,258 over the first 7 months of the tax year (i.e. assuming there is no pension payment being deducted or other deductions)


then the tax he should have paid to date would be


pay = 20,258
less tax free amount to date = 10,000 x 7/12 = 5,822
leaving 14,424 to be taxed at 20%
so tax ought to be 2,884


which all seems about correct

mrsvanderkamp_2

That's great. Thanks :-)