Personal tax account calculation for 21/22 30 October 2022 at 4:11PM in Cutting tax 7 replies 184 views

Albermarle

I am owed tax from 21/22.  I only worked for 4 months before retiring, and after a couple of months I started getting a modest DB pension. On the first 4 months salary I paid some 40% tax, but by the end of the tax year I had significantly less income in that tax year than £50K. So in simple terms I was a 20% taxpayer who had paid some 40% tax and I am due a rebate for that. On my personal tax account all the info is accurate, salary when working, pension income and the tax paid, but no sign of any calculation for 21/22 that would highlight that I am due a rebate. I understood that all these calculations should be completed by now ?. Do I just have to keep waiting or should I chase them up?

Dazed_and_C0nfused

Albermarle said:

I am owed tax from 21/22.  I only worked for 4 months before retiring, and after a couple of months I started getting a modest DB pension. On the first 4 months salary I paid some 40% tax, but by the end of the tax year I had significantly less income in that tax year than £50K. So in simple terms I was a 20% taxpayer who had paid some 40% tax and I am due a rebate for that. On my personal tax account all the info is accurate, salary when working, pension income and the tax paid, but no sign of any calculation for 21/22 that would highlight that I am due a rebate. I understood that all these calculations should be completed by now ?. Do I just have to keep waiting or should I chase them up?

Most will be done by now but there will always be exceptions and gov.uk does refer to the end of November at the moment.

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

Do you know why you didn't get the 40% tax back via the pension payments later in the same tax year?

Albermarle

Most will be done by now but there will always be exceptions and gov.uk does refer to the end of November at the moment

OK I will be patient for another month!

Do you know why you didn't get the 40% tax back via the pension payments later in the same tax year?

The pension company just used a standard £1257 code. In fact the DB pension is not much more than £12570 pa , so I have only paid minimal tax on it. So would not have been possible to repay the overpaid tax via that route anyway, as by my calculations it is in the region of £2K.

Troytempest

Similar situation with Mrs Tempest. But she phoned HMRC last week and the calculation was done over the phone and finalised so just awaiting a refund cheque now.....

Dazed_and_C0nfused

Troytempest said:

Similar situation with Mrs Tempest. But she phoned HMRC last week and the calculation was done over the phone and finalised so just awaiting a refund cheque now.....

She'll be waiting a while normally as HMRC only like issuing refund cheques as a last resort.

If she checks her Personal Tax Account she may well be able to claim the amount overpaid straight away and have it paid into her bank account.

Dazed_and_C0nfused

Albermarle said:

Most will be done by now but there will always be exceptions and gov.uk does refer to the end of November at the moment

OK I will be patient for another month!

Do you know why you didn't get the 40% tax back via the pension payments later in the same tax year?

The pension company just used a standard £1257 code. In fact the DB pension is not much more than £12570 pa , so I have only paid minimal tax on it. So would not have been possible to repay the overpaid tax via that route anyway, as by my calculations it is in the region of £2K.

Can't really agree with that.

If they had your P45 (or the details from it) then they would have refunded any overpaid tax as they made your pension payments, that's one of the basic reasons PAYE works well for the vast majority.

Dazed_and_C0nfused

Dazed_and_C0nfused said:

Troytempest said:

Similar situation with Mrs Tempest. But she phoned HMRC last week and the calculation was done over the phone and finalised so just awaiting a refund cheque now.....

She'll be waiting a while normally as HMRC only like issuing refund cheques as a last resort.

If she checks her Personal Tax Account she may well be able to claim the amount overpaid straight away and have it paid into her bank account.

It looks like something has changed and it's not as long as it used to be, sure it used to be more like 6-7 weeks.

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye91037

Albermarle

Dazed_and_C0nfused said:

Albermarle said:

Most will be done by now but there will always be exceptions and gov.uk does refer to the end of November at the moment

OK I will be patient for another month!

Do you know why you didn't get the 40% tax back via the pension payments later in the same tax year?

The pension company just used a standard £1257 code. In fact the DB pension is not much more than £12570 pa , so I have only paid minimal tax on it. So would not have been possible to repay the overpaid tax via that route anyway, as by my calculations it is in the region of £2K.

Can't really agree with that.

If they had your P45 (or the details from it) then they would have refunded any overpaid tax as they made your pension payments, that's one of the basic reasons PAYE works well for the vast majority.

OK did not realise they could actually have refunded more tax than I was actually paying on the pension.
Anyway getting the pension actually into payment was a tortuous business (with Mercer). In the end had to involve my ex employer, raise official complaints, due to their very slow/non existent responses. Then the first payment never turned up etc. If remember rightly they never asked for a P45.
Anyway all history now and if nothing happens soon, I will call them like 'Mrs Tempest' did.