Tax refund - Is this right

cambb

Hi,
On this years self assessment I had a underpayment of tax of £2065.80 from tax year ending 2016. It was noted in my 2017 statement "Balancing payment for 15/16 included in PAYE code for year 17/18 £2065.80. On my 2017 coding notice it states " Less Underpayment Restriction £5164 Total tax-free amount £8008 - Tax code 800L. I have checked my payslips and i have been on 800L all year therefore have paid the underpayment back? I have included a note on my SA stating this and i am now due a refund. Just checked my online statement and is says Total tax repayable to you for 2017-18 £1,905.20.
How long does it normally take to process the refund and is the above correct?
Thanks

Dazed_and_confused

Did you include the tax underpaid within the relevant box on the return for 2017:18?

If not then the calculation will be wrong and you will have to pay any refund received now back to HMRC in due course (potentially with interest depending on when it happens).

You need to look at your self assessment account and check the calculation before doing anything else.

cambb

Thanks for the response.

Just checked the calc on the SA website and it says:-

Total overpaid at 31 January 2019
£1,905.20

Therefore will i get the refund after the 31 Jan?

Thanks

Dazed_and_confused

No, you would normally get it a few days after claiming it (this is usually done by you completing the relevant part of your return and adding bank details for the refund to be paid into a bank account).

But, based on your original post I think it is quite possible (probable even) that you are ultimately not going to be due a repayment because I think you may not have completed the return correctly.

Have you checked your Self Assessment calculation for 2017:18 and does this include tax underpaid of £2065.80 (it will be somewhere near the end of the calculation)?

If you claim the repayment in this situation then HMRC will at some point start asking questions/investigating your return and you will have to pay back the £1905 and another £160 on top at least.

NB. This doesn't mean you are being taxed twice on the £2065.80

cambb

Thanks for the reply.

No it doesn't include any reference to the £2065.80. It did when i did the original calculation as i owed it as un-paid tax so i added the a comment that i had paid the outstanding amount through my coding notice. I submitted my SA on the 1st and got a letter 3rd and the amount of £2065 for underpaid tax is on the letter however the calc online claims i'm getting a refund?

BoGoF

Without seeing your full calculation it is impossible to say if correct. Can you post your P60 details? Were you in same job throughout the year? Seems odd you have a large overpayment with no obvious reason.

cambb

I suspect the over payment id due to child benefit that i stopped receiving however I was still taxed on

[Deleted User]

Clearly the op is a 40% taxpayer as the underpayment restriction of £5164 at 40% is £2065.60 - a mere 20p out.

I agree with dazed as it does appear that the form has not been included correctly to include 'tax underpaid for an earlier year included in this year's code'.

The difference would be an underpayment of £129.60 in the year which is more sensible. The reasons for this ?

Claim for subscriptions less than last year. BIK, fixed rate expenses etc etc More detail is needed.

Edit:

Or a repayment of child benefit to which the op was not entitled.:rotfl:

cambb

The below is my calculation page:-

Pay from employments £67,499.00
minus allowable expenses £1,272.00
Total income received

£66,227.00
minus Personal Allowance £11,500.00

Total income on which tax is due

£54,727.00

How we have worked out your income tax

Amount Percentage Total
Pay, pensions, profit etc. (UK rate for England, Wales and Northern Ireland)
Basic rate £33,500.00 x 20% £6,700.00
Higher rate £21,227.00 x 40% £8,490.80
Starting rate £0.00 x 0% £0.00
Nil rate £0.00 x 0% £0.00
Basic rate £0.00 x 20% £0.00
Total income on which tax has been charged £54,727.00
Income Tax due £15,190.80
minus Tax deducted
From all employments, UK pensions and state benefits £17,096.00
Total tax deducted £17,096.00
Income Tax overpaid £1,905.20
Estimated overpayment at 31 January 2019


(Note: 2nd payment of £0.00 due 31 July 2019)

This calculation does not take into account any 2017-18 payments on account you may have already made or tax due for earlier years
2017-18 balancing credit £1,905.20
Total overpaid at 31 January 2019

£1,905.20

cambb

Just checked this years SA and i did fill in page TC1 section 2 £1905.20 and added a note in the comments field.

BoGoF

So you didn't enter the underpaid tax of £2065.80 in box 7 of Sa110 (tax calc). I think that is the correct box.

I suspect there is no refund due