Paye overpayment

jbias18

Hi,

Looking for some assistance please regarding a bonus payment made end of March 2022. Just received my wage slip and my income
tax payment appears to be overpaid by approx £700 due to my bonus, my bonus payment doesn’t take me to a higher bracket and this is the first time it has ever happened, my understanding was that it shouldn’t auto adjust as it is a final payment for the year, understand why it would if paid earlier in year.

When should I call HMRC new tax year or now, ideally need it sorting as wife is on maternity, or is it automatically paid next back next month?

Regards

Dazed_and_C0nfused

It definitely won't be refunded in next months pay as that is a different tax year.

What tax code are you on and is it being operated on a cumulative or non cumulative basis?

What is taxable pay for this tax year (the amount you expect to see on your P60)?

jbias18

Hi,

Thanks for the quick response;

653lx
40,395

Dazed_and_C0nfused

It's likely to be down to being on a non cumulative tax code (signified by the x).

Do you have the full breakdown of the code and whether there was an underpayment, either included in the make up of that code or which is going to be included in your 2022:23 tax code?

If there is a refund due I wouldn't get your hopes up for seeing it for a month or three yet.

You don't need to do anything, HMRC will automatically refund any overpaid tax (or amend your 2022:23 tax code if that includes tax owed and you no longer owe as much after 2021:22 has been reviewed.

https://www.gov.uk/tax-overpayments-and-underpayments

molerat

jbias18 said:

Hi,

Thanks for the quick response;

653lx
40,395

The x is the problem, each payday is taxed on a stand alone basis, it doesn't "auto adjust".  Your tax will be looked at and the overpayment should be sorted some time in the early part of the next FY.

jbias18

Thanks for providing the information, the only underpayment I can see online is for £17.40 due to medical insurance from a previous year 20/21.

Dont suppose you know if the rebate comes in one or is spread out over the 22/23 year usually? Normally I wouldn’t mind but wife is on maternity pay for rest of year so lump would be better.

Thanks once again put my mind at ease knowing it will eventually turn up

[Deleted User]

molerat said:

jbias18 said:

Hi,

Thanks for the quick response;

653lx
40,395

The x is the problem, each payday is taxed on a stand alone basis.  The overpayment should be sorted some time in the early part of the next FY.

I genuinely admire your optimism - I would estimate October - HMRC time frames in utter chaos at the moment.

Dazed_and_C0nfused

jbias18 said:

Thanks for providing the information, the only underpayment I can see online is for £17.40 due to medical insurance from a previous year 20/21.

Dont suppose you know if the rebate comes in one or is spread out over the 22/23 year usually? Normally I wouldn’t mind but wife is on maternity pay for rest of year so lump would be better.

Thanks once again put my mind at ease knowing it will eventually turn up

Which tax code is the £17.40 included in?

jbias18

653lx I had tax code change in November if I remember correctly.

Dazed_and_C0nfused

jbias18 said:

653lx I had tax code change in November if I remember correctly.

Then there is no refund to be spread out (over 2022:23).

HMRC will review 2021:22 and if you have overpaid they will send you a calculation showing the tax overpaid and invite you to claim the refund by logging into your Personal Tax Account and providing your bank details.

If you choose not to do that they will send you a cheque a few weeks later.

jbias18

Brilliant, thanks again for the response, I will keep my eye out for the message from HMRC in due course