Not sure if I've overpaid tax - opinions requested!

[Deleted User]

theoretica said:

As above, you should get this sorted automatically through your tax code.  I believe this will have the effect of spreading the refund out over the entire year, so don't get a shock when your tax rises next April.  Keep an eye on your tax code on your next pay slip to check it has changed.

That just does not ever happen. The tax year 2020/21 is over and will not be refunded in this tax year by an employer.

MDMD

purdyoaten2 said:

theoretica said:

As above, you should get this sorted automatically through your tax code.  I believe this will have the effect of spreading the refund out over the entire year, so don't get a shock when your tax rises next April.  Keep an eye on your tax code on your next pay slip to check it has changed.

That just does not ever happen. The tax year 2020/21 is over and will not be refunded in this tax year by an employer.

Dazed_and_C0nfused said:

You cannot get a tax refund for one tax year paid via wages payments in the next tax year.

HMRC will refund the tax overpaid in 2020:21.

Although not relevant here, in some cases HMRC will use “earlier years adjustments” to amend a current year code to give prior year reliefs for some job expenses

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye12045#IDANZESI

Usually only done when the taxpayer hasn’t specifically requested a refund

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye93001#IDAZN05B

I believe this was used more pre-2008 as IIRC the old “COP” PAYE computer system would issue separate payable orders for each year so for small expenses payments it was more cost effective to issue in one go via the tax code.

In theory there is nothing to stop it being used more often although most people wouldn’t be too happy if they were told a refund will be spread over a year.