reclaiming old BIK tax from over 5 yrs ago

gamston

hi folks, retired from the railway 10 yrs ago and I'm a lucky one who gets free/low price train tickets, I've been had BiK deductions on my tax code all this time, found out that I shouldn't have been tax as company paided a one off sum when i first retired
phoned HMRC and lady there has given me a rebate back to 2018, but says anything over 5 yrs I need to apply on line or via letter, just looked on HMRC website and it says income tax can only be reclaimed back 5 yrs, So can I reclaim over the 5 yr limit ? ( i would be claiming from 2014-2018)

[Deleted User]

It’s four years plus the current year - you are well outside that window! 

gamston

thanks for that, at least saves me a stamp

sheramber

If HMRC  should have been aware of the limp sum payment made the there mught be a claim under 'official error'.

I expect tha tis what the  person was referring to

https://www.litrg.org.uk/tax-nic/how-tax-collected/tax-refunds

If you miss the deadline

If you think you have overpaid tax in tax years that are ‘closed’ to claims, there is a rule known as Extra-statutory Concession B41 which can allow HMRC to repay tax for those earlier years.

This concession only applies in situations where HMRC or another government department, such as the Department for Work and Pensions, have made an error in your tax affairs and where there is no doubt about the facts of the case.

The relevant part of the concession reads as follows:

‘...repayments of tax will be made in respect of claims made outside the statutory time limit where an over-payment of tax has arisen because of an error by HMRC or another Government Department, and where there is no dispute or doubt as to the facts...'

In our experience, it is rare for HMRC to grant this concession so you will need to set out clear evidence, as to what the error was which resulted in you paying too much tax.

We have produced an example letter that you can use to write to HMRC regarding a B41 repayment, see our page on PAYE tax refunds.

gamston

thanks, I believe when the lump sum was sent the letter state "I need to tell HMRC" so think I'm stuck there