'Martin gave me the confidence to check my tax code - I got £11,500 in 10 days' - MSE News

in Cutting Tax
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MSE_CallumMSE_Callum Forumite
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A mum who queried her tax code after being made redundant received a whopping £11,500 rebate – and has paid off her debts with the proceeds...
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''Martin gave me the confidence to check my tax code - I got £11,500 in 10 days''
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  • SpidernickSpidernick Forumite
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    A tax code is just a way of trying to calculate the correct tax withholding each month. This woman would have got the money back at some point either way (once the year-end calculations are done after the P60s and P11Ds are received) and the suggestion that HMRC just holds onto money unless claimed is at best misleading. Years ago my wife got about a £5K refund when some benefits started to be taxed at source, but were still being included in her tax code, meaning she was overpaying a significant amount each month. HMRC sent the calculation with a cheque without being contacted at all.
    'I want to die peacefully in my sleep, like my father. Not screaming and terrified like his passengers.' (Bob Monkhouse).

    Sky? Believe in better.

    Note: win, draw or lose (not 'loose' - opposite of tight!)
  • tebtherebtebthereb Forumite
    158 Posts
    I must admit this was my reaction upon reading that story also. I suppose leaving it to HMRC is a risk if they don’t have the full picture and/or from a cash flow perspective.
  • Dazed_and_confusedDazed_and_confused Forumite
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    Although under the headline
    Martin gave me the confidence to check my tax code
    there is nothing to actually suggest the tax code used was wrong.

    Sounds more like a large payment was made part way through the year resulting in more higher rate and/or additional rate tax being deducted than turned out to be due. Just like PAYE is intended to work.
  • UsOrThemUsOrThem Forumite
    28 Posts
    Seventh Anniversary 10 Posts Name Dropper Combo Breaker
    Checked my tax code through the prompt on MSE newsletter as it wasn't as expected according to the calculator.
    Turned out after HMRC allowed me to stop doing self-assessment 2 years earlier, the 'note' put on my account wasn't actioned but neither was it enforced.
    what I'd say is certainly check if and when you have any change in circumstance or new employer.
    The tipping point is only reached by more people jumping up and down!
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