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Tax on injury compensation payment

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Did46
Did46 Posts: 1 Newbie
edited 28 July 2021 at 10:38PM in Cutting tax
Can I reclaim the 20% govt taxed me on £10,000 work injury payout if so how do I do this
when I say tax I mean theft 

Comments

  • tacpot12
    tacpot12 Posts: 9,255 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper
    It would be as well to ask the party that paid you the compensation why it was taxed in the first place. If they got it wrong, you will be able to claim it back, but if the tax was deducted correctly you won't. 
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • MalMonroe
    MalMonroe Posts: 5,783 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    edited 28 July 2021 at 4:41PM
    Did46 said:
    Can I reclaim the 20% govt taxed me on £10,000 work injury payout if so how do I do this
    when I say tax I mean theft 
    I was taxed on the interest of a refund I received from HSBC when it was paying out people because incorrect charges in the early 2000s. (You remember?)

    I logged on to my HRMC account and proceeded to fill in the form HSBC had advised would be needed by HMRC so any incorrectly deducted tax could be returned. However, there must have been something in my cup of tea that day because I did it all wrong. Consequently HMRC wrote to me, very politely, to ask if I could please explain a few points for them. 

    I ended up writing a letter to HMRC, telling them exactly what had happened and explaining that I wished to claim the tax back, please. 

    Hey bingo! Not long after that I logged in to my HMRC account again and there was a note to say that I had been refunded some tax and it had gone straight into my bank account.

    So why not try that? Just write HMRC a letter. They are the only ones who can reimburse you, contacting the party who reimbursed you will just waste your time and theirs since they are only following government directives. 

    I'm sure that an explanatory letter will work. Well, it worked for me, so why not?
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
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