Tax refund looks wrong

0779mike

I just got a letter from HMRC telling me that I am due a tax refund of over £6k for 2019/20. It is in the usual HMRC format and in a HMRC envelope so I am sure it is genuine and they have said they will send me a cheque in about 2 months or I can phone for a quicker payment I am 67. My incomes on the calculation are a single salary and two DB pensions all on PAYE with FTSE companies. HMRC have only calculated 20% tax, nothing at 40% and I am well into that band. Am I legally obliged to double check their calculation ?. Obviously they have got a bigger computer than me and know the rules better so is it unreasonable to presume that they know better than me ? Should I just take the refund and wait ?  Obviously, I don't want to waste their time.

xylophone

I am 67. My incomes on the calculation are a single salary and two DB pensions all on PAYE with FTSE companies. HMRC have only calculated 20% tax, nothing at 40% and I am well into that band.

No state pension yet?

https://www.gov.uk/personal-tax-account  Have you checked?

https://listentotaxman.com/

Have you checked your P60s for 19-20?

Dazed_and_C0nfused

My incomes on the calculation are a single salary and two DB pensions all on PAYE with FTSE companies. HMRC have only calculated 20% tax, nothing at 40% and I am well into that band.

Have you previously told HMRC you are making "relief at source" pension contributions?

If so has your basic rate tax band been increased to reflect these?

Did you take a one-off pension income in 2019:20?

0779mike

For several years I have been making monthly pension contributions of about £700 per month - all deducted from salary.
I took a tax free lump sum of £133k when one of the pensions went into payment in July 2019.

zagfles

I don't think you're legally obliged to check the calculation but you are legally obliged to make sure all your income is declared and you're not getting any allowances etc you're not entitled to. Vanishly unlikely that HMRC would make a mistake with the calculation, it's much more likely it's some income they've not included because they don't know about or some allowance etc they think you're entitled to when you're not.

Dox

Something to do with pension contributions, possibly, looking at this thread: https://forums.moneysavingexpert.com/discussion/6111717/lump-sum-recycling-advice-please#latest

0779mike

Ah, I made a large one-off pension contribution in March 2020.  That is what has caused the refund.
Sometimes I wish my wife was an accountant not a garden designer.
Thanks everyone for your input. 

bigfer

zagfles said:

I don't think you're legally obliged to check the calculation but you are legally obliged to make sure all your income is declared and you're not getting any allowances etc you're not entitled to. Vanishly unlikely that HMRC would make a mistake with the calculation, it's much more likely it's some income they've not included because they don't know about or some allowance etc they think you're entitled to when you're not.

Hypotheticaly. How likely would it be that HMRC did make a mistake and overlooked a refund they previously made and made it again. Apart from the moral dilemma, what would happen to the individual if the cheque was cashed? If then later the 
 mistake ( if indeed it was a mistake as the calculation was undertaken by HMRC) was discovered, would that individual be subject to the full wrath and resiprocity of HMRC and possible criminal charges? Asking for a friend.

Silvertabby

HMRC do make mistakes - they are only human!
When I retired I moved my tax code from my salary to my RAF pension - and received a letter saying that I owed  just over £2K in unpaid tax, which would be recovered over 12 months by adjusting my tax code.

I knew I didn't owe this money, so rang HMRC to query it.  The lady I spoke to never did say that someone had let a decimal point slip into the wrong position, but did confirm that I only owed just over £2.

molerat

bigfer said:

Hypotheticaly. How likely would it be that HMRC did make a mistake and overlooked a refund they previously made and made it again.

Very Been there, done that, gave up arguing with them so my class 3s were almost free

Silvertabby

molerat said:

bigfer said:

Hypotheticaly. How likely would it be that HMRC did make a mistake and overlooked a refund they previously made and made it again.

Very Been there, done that, gave up arguing with them so my class 3s were almost free

When we left the RAF (with immediate pensions)  we both had gaps between leaving and starting new jobs.

I kept close tabs on our taxes - but shortly after starting work Mr S received a £500 tax rebate with his salary.  He told HMRC until he was blue in the face that he wasn't entitled to this money but, in this case, HMRC refused to budge.

Over 20 years later, the £500 is still in his ISA.