Getting my income tax overpayment refunded

GinoOhGinoGinelli

Hello everyone,

I hope I'm posting in the right place, apologies if not!

I've done a search of previous threads but I can't find a definitive answer to my query. It may well be that there isn't a straightforward answer, but thought I'd try asking just in case, as I'm going round in circles trying to get it resolved with HMRC and my employer.

My previous employer delayed and messed up all my leaving paperwork which resulted in HMRC thinking I had two overlapping FT jobs. This wasn't the case and I was already in touch with my new employer and HMRC by that point to ensure all my details were correct. Despite this, I was put onto an emergency tax code for three months, which meant they thought I was entitled to zero personal tax allowance.

Then there were apparently further errors which meant the wrong code was issued again (impossible to get to the bottom of it as HMRC thinks it's an employer mistake and vice versa). The latest error is apparently that the right tax code was issued but it was wrongly classed as non-cumulative rather than cumulative, which means I would have to wait until the end of the tax year to get it refunded. Unless the tax code is finally fixed.

I keep being told I will get this money refunded in my next pay but that keeps not happening. I really don't want to wait until the end of the tax year, as I don't know how long it takes HMRC to process everything then, and I really need the money now, as to me it's a really large sum of money.

Thank you for reading 

Dazed_and_C0nfused

Despite this, I was put onto an emergency tax code for three months, which meant they thought I was entitled to zero personal tax allowance.

You are mistaken there, the emergency tax code is 1257L, which means you need to earn more than £1048/month before paying tax.

What tax code number has now been issued?

It would be upto your new employer to make any tax refund (often not an actual refund just less tax paid that week/month so more take home pay).

How much did you get paid (taxable pay not salary) in 2021:22 with job 1 and how much have you earned (taxable pay not salary) so far with job 2?

Are you certain you are due a refund?  Having two jobs* at the same time does often result in tax being owed.

* HMRC are only interested in what was paid not when you physically worked

GinoOhGinoGinelli

Hi @Dazed_and_C0nfused thanks so much for your really helpful response!

That's really useful to know, as I didn't understand how the tax code worked. I was definitely told that though, but I've had so many different conversations back and forth, I can't remember who said it, so I may well be conflating different conversations. As you can tell, I am sadly a complete novice in this field!

The original incorrect tax code was 0T but HMRC has said it should be 1288L.

Yes, I'm definitely owed a refund as I didn't have two jobs at the same time. I finished one job and started my new job the following week. The previous employer messed up my leaving paperwork, so I believe that confused HMRC into thinking my jobs overlapped. I did update my record on the HMRC website but the previous employer didn't generate a P45 for another two months so I don't know if that caused the ongoing issues.

HMRC has confirmed I'm due the refund but they have given me two different figures now so I don't know what the exact amount will be yet.

Thank you again!

Dazed_and_C0nfused

HMRC cannot possibly know how much of a tax refund you will get.

No one can know that until your new company processes your pay for the week/month you will have the cumulative tax code operated.

To make sure things will be correct you need to know two things,

1.  Your new employer is going to use the taxable pay and income tax details from your previous employment.  

2.  They have got the 1288L tax code on a cumulative basis.

Do both jobs pay monthly?

What was the date you were last paid by the old employer?

What was the date you were first paid by your new employer?

GinoOhGinoGinelli

Thanks for your reply @Dazed_and_C0nfused.

That's interesting as HMRC told me on the phone that they had calculated it, and that the most recent figure they gave me would be the exact amount I should be refunded. I'm not sure why they said it with such certainty, but based on what you've said I'll wait and see rather than just assume the figure is correct. 

Regarding the two points:

1. If my employer has finally received the P45 from my old job (which they only issued to me two months into my new job), will that give them all the details they need? My HMRC record also appears to be up-to-date now.

2. This is where one of the latest problems lies - HMRC said they have issued the correct code twice as cumulative. But my employer has it down as non-cumulative. I'm contacted my employer to raise this but haven't heard back from them.

I finished my old job at the end of September and got my final pay then too. Started the job at the start of October and received my first pay at the end of October. 

Thanks again

chrisbur

GinoOhGinoGinelli said:

Thanks for your reply @Dazed_and_C0nfused.

That's interesting as HMRC told me on the phone that they had calculated it, and that the most recent figure they gave me would be the exact amount I should be refunded. I'm not sure why they said it with such certainty, but based on what you've said I'll wait and see rather than just assume the figure is correct. 

Regarding the two points:

1. If my employer has finally received the P45 from my old job (which they only issued to me two months into my new job), will that give them all the details they need? My HMRC record also appears to be up-to-date now.

2. This is where one of the latest problems lies - HMRC said they have issued the correct code twice as cumulative. But my employer has it down as non-cumulative. I'm contacted my employer to raise this but haven't heard back from them.

I finished my old job at the end of September and got my final pay then too. Started the job at the start of October and received my first pay at the end of October. 

Thanks again

Regarding the tax rebate, all HMRC can tell you is the amount of tax you have overpaid.  This is probably what they meant by tax rebate but that is misleading as that is not what will appear on your payslip as a tax rebate.  This adjustment will occur when you are next paid and that payment will almost certainly have tax due on it which will alter the tax rebate figure.  For example  say you get paid and your tax code would normally result in £200 tax being paid and HMRC said you had overpaid £500. You would get a rebate on your payslip of £300.
This £300 plus the tax figure of £200 that was not deducted for that month make up the £500.  

Might be worth checking your payslip to see if the year to date figures have been updated to include earnings from old job, if they have then suggests HMRC have sent tax details.