Tax rebate question

sweeper12

Hi everyone

I just have a quick question for you.

I got a letter in the post this morning from the IR and they seem to think I am paying too much tax. They have sent me a form to fill in so that they can look into it.

I have automatic discharge in 5 weeks so what happens if I get a rebate after that ? I know from past experience that these tax things take a while so if I got a rebate, do I pay that to the OR if I receive it after discharge ?

Thanks

Rafter

Was there a period when you were paying no tax and additional money to the OR?

If so, you may well have paid too much tax last year and be entitled to a refund.

I'm not sure what the situation is if this relates to the period you were bankrupt or prior to bankruptcy, but if you receive it personally after your discharge date I don't see why you should have to pay it over.

I suggest you fill out the form and send it back but take a few weeks about doing it. You could include a letter confirming the period you were bankrupt too. Then if you get a refund you know you have given them all the facts.

R.

sweeper12

Hi Rafter

Thanks for the reply. I was (supposedly) on NT tax code from Jan til April this year but I didn't see anything different on my pay slips. I seem to be on emergency tax for all my jobs apart from one - I have several small part time jobs. I just wondered if I had to pay any rebate after discharge as it will have been in my BR period.

Confusing as I don't want to take the money and then discover I've ripped off the OR. I suppose I could do your suggestion and fill in the form with all the facts.

Sweeper

malestrom07

Do you have an IPA or IPO in place? if so the OR should be monitoring your tax and picked these things up, the OR can easily order the tax office to sort it out and could even request payments of refunds to him as your "nominee".

In a nutshell, if the refund is for a small amount the OR may not be at all interested. After discharge if you receive a refund, I'd suggest you inform the OR. It is technically income for the period of your BR, however paid late by means of a refund and the OR should know. Again he may not be interested in claiming it.

If you feel that you are due a refund for a particular tax year you need to fill in one of these http://www.hmrc.gov.uk/forms/r40.pdf. Please make sure you enclosed the required documentation. I recently claimed back over the last 4 years and to my suprise I was £4000 better off.

I would urge anyone who changed jobs mid year, came off or went onto benefit to ask for a recalculation. You do not need to specify why, just ask on the above form and any repayment due will be calculated and repaid to you.

This is a real gem. Claiming back a refund just before the end of the tax year may result in the overpayment being made as an adjustment to the following tax year. So you don't receive the cash but you get a higher tax code and pay proportionately less next year. No one knows it's income, it's tax free and your eventually better off. Hope this helps.

sweeper12

Hi Malestrom

I don't have an IPA/IPO because my income was too low for the OR to take anything after my outgoings.

I think I will wait for my discharge, fill in the form, see what the IR do and then if I get a rebate, I will phone the OR and ask what they want me to do with any refund that I might get.

Sweeper

malestrom07

Hi Sweeper well thats sounds even better, the additional rebate probably wouldn't make that much difference, although it may be paid as a lump sum it's probably not going to be that much per month.

Malestrom