Is it normal to get a Tax Refund every year?

Wizzbang

Thanks for the helpful suggestions re: finding numbers. I have an accountant who does all of this stuff for me because I have a small business, so although I am au fait with some of it- it's years since I worked for anyone. But as I said, when I was working I never got refunds.

Sorry, but my husband is a fairly newly qualified teacher- there is no way he has time to do anything other than his job and all the hours of marking etc that goes with that! Let alone come on here or try and sort this out for himself.

He is getting his full personal allowance of £10000 according to the HMRC document regarding the refund. OK- I have rifled through his papers and found a payslip and a P60. His tax code is as suggested 601L. The document states that therefore he is being taxed at 20% (basic rate) on the remaining £11,295 which equals £2259 tax. However, clearly from this document PAYE have taken £3055.20 and this must be happening every year, thus generating the refunds. Clearly from all your comments, it is not normal to be receiving this refund every year. But, to me this all looks normal and correct. Hence, why I don't understand.

Wizzbang

sheramber wrote: »

Is the code number on the notice of coding the same one as on his payslip?

His employer may not be operating the correct code number

All the numbers match, but the council who employs him is still sending documents to an address we lived at over 2 years ago! They seem stuck in the dark ages with their payroll, hardly surprising!

Caz3121

Do HMRC have the correct address for him? he should have received a coding notice to advise how the tax code of 601L was calculated

Wizzbang

Yes, everything from HMRC themselves is coming to the correct address. I don't know whether he has received a coding notice and I honestly don't know where I'd start looking for one. He'll have it somewhere- I might be able to hunt tomorrow.

zygurat789

Wizzbang wrote: »

He is getting his full personal allowance of £10000 according to the HMRC document regarding the refund. OK- I have rifled through his papers and found a payslip and a P60. His tax code is as suggested 601L. The document states that therefore he is being taxed at 20% (basic rate) on the remaining £11,295 which equals £2259 tax. However, clearly from this document PAYE have taken £3055.20 and this must be happening every year, thus generating the refunds. Clearly from all your comments, it is not normal to be receiving this refund every year. But, to me this all looks normal and correct. Hence, why I don't understand.

He is getting his full allowances - eventually when they bother to work it out and process the refund.
But the code number of 601L is obviously wrong as I said it should be at least 1060L and as a teacher there are probably a few extra expenses say £410. Leaving £5000 not included in the code number, the reason for the perpetual refunds.
The solution is to ring HMRC either before 8:30 am or after 6:30pm. The most common reason is that they think he has two jobs.

somethingcorporate

You should make time to sort it (or your husband should) otherwise you'll get refunds every year. There is a disconnect between the codes given that is driving the refund. Even if they did think he had another job they would usually (unless told otherswise) allocate the full code to one and BR to the other so this seems unlikely. They may think he has some kind of BIK to lower the code but it wouldn't explain why they are doing refunds as evidently they know he isn't ultimately getting the benefit from it.

Sounds like you need to find the coding notice or talk to HMRC. I appreciate how busy teachers are but so is everyone and this is just part of life we have to squeeze in if we want to fix it.

xylophone

Your husband might try this https://online.hmrc.gov.uk/shortforms/form/P2?dept-name=&

If he really has no Notice of Coding for 2015-16 he might have to use the code he has and explain in the box provided.

bigfreddiel

Well, to me this is what your problem with your husband's tax looks like.

First why don't you know if he had had a notice of coding? Just ask him!

Second, it's easy to work out yourself. Deduct tax allowance, deduct pension contributions if any, add on any interest (gross), share divis, and any other gross income then multiply result by 0.2 assuming lower rate tax payer, and there's your tax.

To be certain get self assessed, ask the tax man for a form, then they will work it out for you and show you their workings! Simples!

I do this and get a tax rebate every year.

Look at it this way, when you pay for something you check your change don't you?

When you have a meal out you check the bill?

When your credit card statement arrives you check each line?

So why not do it with the biggest financial arrangement you have?

Sheer lunacy if you don't isn't it?

Cheers fj

patanne

I'm sure I remember reading somewhere that teachers get tax relief on PART of their union membership!

missbiggles1

Would this have anything to do with Student Loan repayments?