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Reclaiming Income Tax paid on ESA which has now been repaid
ms2608
Posts: 6 Forumite
I receive an Occupational Pension and ESA (Contributions based), on which I pay Income Tax.
In 2015 I received an award for "damages" from my employer, which I understand is not subject to Income Tax. As part of this process, all ESA monies which I had received up to the date of the award were repaid in full to the DWP.
The amount of ESA repaid was almost £16,000, and with this removed from my annual income for three tax years, my income was below the personal allowance amount. I have contacted the Inland Revenue, requesting for the tax which I paid on the ESA, now repaid, be refunded to me. I provided them with copies of the DWP schedule, showing the amount of ESA I repaid, together with copies of the cheques from the solicitor who repaid the monies on my behalf.
Their responses have totally ignored the content of my letters, and I am receiving standard letters showing my income for each tax year (including the repaid ESA), and informing me that the amount of tax paid is correct - thus no refund is necessary.
I have written twice, with no joy - it really feels like a case of "computer says ...." - I am unable to make phone calls due to mental health illness, and I have no idea as to how I can get them to actually take on board the content of my letters.
Also, does anybody know if I am on the right track in considering that the Income Tax I paid should now be refunded, as in effect, my income was reduced for those years when I repaid the ESA.
Thank you.
In 2015 I received an award for "damages" from my employer, which I understand is not subject to Income Tax. As part of this process, all ESA monies which I had received up to the date of the award were repaid in full to the DWP.
The amount of ESA repaid was almost £16,000, and with this removed from my annual income for three tax years, my income was below the personal allowance amount. I have contacted the Inland Revenue, requesting for the tax which I paid on the ESA, now repaid, be refunded to me. I provided them with copies of the DWP schedule, showing the amount of ESA I repaid, together with copies of the cheques from the solicitor who repaid the monies on my behalf.
Their responses have totally ignored the content of my letters, and I am receiving standard letters showing my income for each tax year (including the repaid ESA), and informing me that the amount of tax paid is correct - thus no refund is necessary.
I have written twice, with no joy - it really feels like a case of "computer says ...." - I am unable to make phone calls due to mental health illness, and I have no idea as to how I can get them to actually take on board the content of my letters.
Also, does anybody know if I am on the right track in considering that the Income Tax I paid should now be refunded, as in effect, my income was reduced for those years when I repaid the ESA.
Thank you.
0
Comments
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I would think DWP would have to advise HMRC of the adjusted payments before HMRC would amend your tax for these years.
A ohone call or using the chat line would be a better way to sort it out and find out exactly what they need.0 -
I would think DWP would have to advise HMRC of the adjusted payments before HMRC would amend your tax for these years.
A ohone call or using the chat line would be a better way to sort it out and find out exactly what they need.
Thank you very much - I shall ask somebody to follow this up with HMRC on my behalf.0 -
HMRC do have rules around this subject,
https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim760050
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