HMRC mistake now I’ll pay more

harriet30

Hello,

I changed jobs midway through the year and so was on an emergency tax code for one of the jobs. I spoke to HMRC and they changed the code and processed a refund for me. 

I spoke to HMRC today because my tax free allowance has gone down by about £5.5K (from 1313L to 750L) so I now owe HMRC over £1000. They said it’s because they refunded all the tax I’d paid over the year rather than just the emergency tax difference by mistake. 

As a result I’m now going to be £83 a month worse off than I was before. 

As this is their fault and not mine does anyone think there is anything I can do about this? 

harriet30

I should add I asked them to do the repayments over 2 years not one so my new tax code for 22/23 will be 952L

comeandgo

Excellent result getting them to allow you two years to repay.

Jeremy535897

There is nothing you can do. You have benefited from an interest free loan.

Dazed_and_C0nfused

As a result I’m now going to be £83 a month worse off than I was before. 

You're not any worse off, just paying the tax at a later date.

As others have said you are effectively getting an interest free loan from HMRC.  

Not something many people will be able to benefit from!

littledog70

As this is their fault and not mine does anyone think there is anything I can do about this? 

  It is also partly your fault, you should have notified them immediately you had a way to big refund, so they could correct it sooner....

MattMattMattUK

I cannot see how you are in any way "worse off", you have exactly the same amount net pay as you would have had you paid normally.