Tax Refund- Cheque or Tax code change?

Mikeyb

Please can someone provide a definitive answer;
Can the Taxpeople lawfully refuse to issue a cheque for a rebate which is owed as a result of an individual not previously claiming professional subscriptions and a Flat Rate Allowance? Instead, they are changing my tax code to benefit myself in the future. The sum involved is approximately £400, and in my circs a cheque is preferable and was requested.

hope someone can help, thank you.

fengirl_2

if the claim is for past years, then they must issue a refund, or set the overpayment against unpaid tax for past years. If the claim is for the current year, it has to go in the PAYE code number as HMRC do not know what you will be earning in the current year and therefore not know what relief is due.

Mikeyb

Thank you Fengirl- much obliged.
Please can you direct me to a point of reference regarding this- I have searched the HM R& C site to no avail.
The tax owed goes back the six years that is allowed, and affects 100 + of my colleagues as well. It seems that there is no consistency with the Tax Office. Some receive cheques, others a Tax Code change, despite the fact that they have the same circumstances and all asked for a cheque in their rebate request letter. The cynic in me thinks it is 'easier' for the Tax Office to change the Tax Code, rather than pay out money already gathered.
You would make lots of people very happy if you could assist- a £400 cheque before Christmas would be much appreciated!!
regards, Mikey b

fengirl_2

You are entitled to relief for expenses at your highest rate of tax pertaiing to the year in which the expenses were incurred. By adjusting this year's code, you are only getting 22% relief where relief may have been due at 25% in earlier years, or even at 40% if you were a higher rate taxpayer.
I would write to HMRC pointing this out - however...... if you now have the relief in your code, the relief will be removed and you will have the refund which has been paid through your wages clawed back. However, if you are concerned over the principle of the thing (and I agree that this is a lazy way to deal with your claim - would have been unheard of in my day, etc), then persue HMRC. Also, as you say, there is the question of interest.
Do you have a union rep at work who could phone HMRC on behalf of you all and ask them what they are playing at?

Mikeyb

Fengirl- thanks very much for this advice- to cut a long story short; 100+ officers recognised the fact that they had never previously claimed Flat Rate Allowance for cleaning uniforms and also Tax Relief on professional subscriptions. This was up to the maximum period of six years. Each sent a generic letter which included an appendix of subscription costs for the past six years, requesting a Tax rebate in the form of a cheque. The Tax Office has been less than helpful on some occasions- citing lost letters and also requesting figures (despite them already being included ininitial letter).
Some have received the rebate by way of cheque- but most had their Tax Code changed. When these officers have telephoned the Tax Office to query this decision they have met with a variety of answers; including 'change of policy', 'it has been done now so we can't alter it' etc. One officer has received a letter in which the HM R&C refused point black to pay by cheque!
Unfortunately a phone call to HM R&C won't solve this query; they appear to be more beligerant with the increasing amount of Tax rebate requests they receive now that word has spread!
Is there Tax Office guidance available to the public so we can query the decision with evidence that they are not acting correctly? thank you,
Mikeyb

Hoddie_2

It is quicker for HMRC to give an Earlier Year Allowance than raise informal assessments for six years in order to calculate the repayment to the penny - particularly if they don't hold full income details for you for all those years.

You are well within your rights to claim a cheque and they should be able to arrange this following a telephone call - if they refuse ask to speak to a manager. Only if they don't have your full income details for the relevant years will they be unable to do this (without you supplying P60s), or if you completed a Self Assessment return for any of the relevant years.

Interest will (or should) be factored into the EYA adjustment in yo ur code.

missile

You could make a formal complaint. See HM Revenue & Customs Charter para 6.2>
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000248&propertyType=document