Is my wife due a tax rebate .

alfmurph

My wife was in full time employment until august 31st 2020 paying the tax due . In september 2020 she retired and her private works pension started paying out . Her pension was £12,500 per year so she expected around £1050.00p per month with no tax to pay . But she only received £840.00p per month so she was still paying 20% income tax .
In april 2021 her pension starting paying £1050.00p as she expected .
Does that mean she is due a tax refund of £210 per month for september 2020 until april 2021 around 8 months at £210 - over £1600 .
Nothing from the tax man yet .
She is 64 so not receiving any old age pension and no other income .
If this is correct should she contact tax man or wait for them to pay out .

Dazed_and_C0nfused

There may be a refund due but with no information about her earnings its impossible to say.

What did her P45 show her for her pay and tax deducted to the point she retired?  What was the tax code on her P45?

What did her P60 from teh pension company shoe her pension and tax deducted for the year to 5 April 2021 was?

Are you certain she has absolutely no other taxable income?

alfmurph

She was paying higher tax at 40% and had medical and benefits in kind extra tax to pay . She took a 6 figure sum for her db pension along with the 12k pension .
Cannot put my hands on p60 or p45 .
I just thought if she had paid her dues until her job finished she would automatically change her tax code for the rest of the year .

Dazed_and_C0nfused

Until you have all the facts, including her 2020:21 P11D from her former employer, its impossible to know if she had overpaid or not.

She may well have done but possibly not.

Had she been on the emergency tax code she would have been paying a pound of two in tax each month so there is more to this than meets the eye.

etienneg

Tax is always calculated for the year. So you need to add her earnings (from 6th April to retirement) to her pension (from retirement to 5th April) and then work out the tax due on the total.

Collection of tax is a different matter. It usually assumes your earnings, pension, etc. will continue for the whole year. Each month you get 1/12 of the tax-free allowance, so if it does continue for the whole year, at the end you will have paid the right amount of tax. But if it changes part way through the year, you may be due a refund or have more to pay. There's no such thing as having "paid your dues" for part of the year.

alfmurph

Her former company told her they only inform tax man in june or july once a year of people no longer paying tax on private medical and benefits in kind . This included buying an extra weeks holiday , buying company travel insurance etc .
So my question is really simple - If she is due refund when would she be likely to receive this .

molerat

Likely any time up until October.  What does her personal tax account show for the 20-21 tax year ?

alfmurph

£2750 .
came today .