Overpayment of income tax

eskbanker

RG2015 said:

sheramber said:

With the backlog people are reporting your letter may not be actioned in time to adjust your code for 24/25.

If your code for 24/25 is not adjusted before your last payday then , when your tax paid is checked after April 25 any overpayment will be repaid. .

Thanks. Is the tax paid check after 25 April a standard procedure and how long may that take to complete?

I was also hoping that they may discover their mistake anyway and adjust my code off their own bat.

I understood the reference to 'April 25' to mean April 2025 rather than April 25th!

I assumed that the process referred to is the annual one that hasn't been completed for 23/24 yet, i.e. reconciling tax paid over the whole tax year versus calculated liabilities with input from all sources, rather than an additional exercise, but happy to be corrected....

RG2015

eskbanker said:

RG2015 said:

sheramber said:

With the backlog people are reporting your letter may not be actioned in time to adjust your code for 24/25.

If your code for 24/25 is not adjusted before your last payday then , when your tax paid is checked after April 25 any overpayment will be repaid. .

Thanks. Is the tax paid check after 25 April a standard procedure and how long may that take to complete?

I was also hoping that they may discover their mistake anyway and adjust my code off their own bat.

I understood the reference to 'April 25' to mean April 2025 rather than April 25th!

I assumed that the process referred to is the annual one that hasn't been completed for 23/24 yet, i.e. reconciling tax paid over the whole tax year versus calculated liabilities with input from all sources, rather than an additional exercise, but happy to be corrected....

Of course. Duh! Wishful thinking on my behalf.

Based on  their final calculation for 23/24, that won’t be until January 2026.

sheramber

So, it might be worth it to phone sharp when lines open.

Start dialling just before time to be at the front of the queue

RG2015

RG2015 said:

I have just remembered that after HMRC had issued my P800 advising that I owed £209.60 for 2023/2024, they said this would be collected via my 2025/2026 PAYE tax code.

I did not want my 2025/2026 tax code to be affected so I paid the £209.60. I suspect herefore that the PUP cancellation relates to my 2025/2026 tax code.

This issue is that HMRC had already included this in my 2024/2025 tax code by reducing my allowance by £1,048.00 in March 2024 (as shown in my screenshot in an earlier post).

I did not have the stamina to phone HMRC so I have written to them requesting that they advise me how they are going to reimburse me.

I received a reply from HMRC saying they had cancelled the underpayment in my tax code, and they would not be collecting the underpayment via my tax code.

They may have cancelled the underpayment (PUP coded out cancelled) but by not changing my tax code the amount paid remains unadjusted.

I phoned HMRC yesterday and they saw what had happened and did change my tax code. I can see this in my PTA online. However, my 28 March monthly pension payment is already showing there. Hence I will not be reimbursed this tax year.

The HMRC person said that my pension provider would reimburse me. I questioned this as it did appear to be too late. She responded by saying that it would then show on my P60 as a discrepancy and HMRC would rebate me.

I asked how quick this would be and she said a week or two. This does sound a bit odd as I thought this would be part of the P800 calculation, which would be several months.

Is it likely that HMRC would issue a tax rebate in April or May in advance of the P800 calculation?

Dazed_and_C0nfused

RG2015 said:

RG2015 said:

I have just remembered that after HMRC had issued my P800 advising that I owed £209.60 for 2023/2024, they said this would be collected via my 2025/2026 PAYE tax code.

I did not want my 2025/2026 tax code to be affected so I paid the £209.60. I suspect herefore that the PUP cancellation relates to my 2025/2026 tax code.

This issue is that HMRC had already included this in my 2024/2025 tax code by reducing my allowance by £1,048.00 in March 2024 (as shown in my screenshot in an earlier post).

I did not have the stamina to phone HMRC so I have written to them requesting that they advise me how they are going to reimburse me.

I received a reply from HMRC saying they had cancelled the underpayment in my tax code, and they would not be collecting the underpayment via my tax code.

They may have cancelled the underpayment (PUP coded out cancelled) but by not changing my tax code the amount paid remains unadjusted.

I phoned HMRC yesterday and they saw what had happened and did change my tax code. I can see this in my PTA online. However, my 28 March monthly pension payment is already showing there. Hence I will not be reimbursed this tax year.

The HMRC person said that my pension provider would reimburse me. I questioned this as it did appear to be too late. She responded by saying that it would then show on my P60 as a discrepancy and HMRC would rebate me.

I asked how quick this would be and she said a week or two. This does sound a bit odd as I thought this would be part of the P800 calculation, which would be several months.

Is it likely that HMRC would issue a tax rebate in April or May in advance of the P800 calculation?

No.  They doubtless meant a week or two from when you received the P800.

RG2015

Dazed_and_C0nfused said:j

RG2015 said:

RG2015 said:

I have just remembered that after HMRC had issued my P800 advising that I owed £209.60 for 2023/2024, they said this would be collected via my 2025/2026 PAYE tax code.

I did not want my 2025/2026 tax code to be affected so I paid the £209.60. I suspect herefore that the PUP cancellation relates to my 2025/2026 tax code.

This issue is that HMRC had already included this in my 2024/2025 tax code by reducing my allowance by £1,048.00 in March 2024 (as shown in my screenshot in an earlier post).

I did not have the stamina to phone HMRC so I have written to them requesting that they advise me how they are going to reimburse me.

I received a reply from HMRC saying they had cancelled the underpayment in my tax code, and they would not be collecting the underpayment via my tax code.

They may have cancelled the underpayment (PUP coded out cancelled) but by not changing my tax code the amount paid remains unadjusted.

I phoned HMRC yesterday and they saw what had happened and did change my tax code. I can see this in my PTA online. However, my 28 March monthly pension payment is already showing there. Hence I will not be reimbursed this tax year.

The HMRC person said that my pension provider would reimburse me. I questioned this as it did appear to be too late. She responded by saying that it would then show on my P60 as a discrepancy and HMRC would rebate me.

I asked how quick this would be and she said a week or two. This does sound a bit odd as I thought this would be part of the P800 calculation, which would be several months.

Is it likely that HMRC would issue a tax rebate in April or May in advance of the P800 calculation?

No.  They doubtless meant a week or two from when you received the P800.

Am I correct in saying HMRC would need to wait for the banks to submit my interest received before they would issue the P800?

Last year’s was only issued in January which would mean waiting for 10 months for my rebate.

Sarahspangles

I can’t remember the cut off date for banks to supply information about interest - 30th June? - but it’s in time for this data to be taken into the P800 calculation if they ran on the usual cycle. Which they haven’t, this year. The reason is that HMRC has been overstretched, rather than they are waiting for something.

RG2015

Sarahspangles said:

I can’t remember the cut off date for banks to supply information about interest - 30th June? - but it’s in time for this data to be taken into the P800 calculation if they ran on the usual cycle. Which they haven’t, this year. The reason is that HMRC has been overstretched, rather than they are waiting for something.

I have just checked and it is 30th June.

I wonder if they will pay any interest on the delayed rebate?

Sarahspangles

RG2015 said:

Sarahspangles said:

I can’t remember the cut off date for banks to supply information about interest - 30th June? - but it’s in time for this data to be taken into the P800 calculation if they ran on the usual cycle. Which they haven’t, this year. The reason is that HMRC has been overstretched, rather than they are waiting for something.

I have just checked and it is 30th June.

I wonder if they will pay any interest on the delayed rebate?

You mean if it your P800 and refund for 2024/25 are late?

My refund for 2023/24 was paid into my account yesterday. I did get a small amount of interest added.

Dazed_and_C0nfused

RG2015 said:

Sarahspangles said:

I can’t remember the cut off date for banks to supply information about interest - 30th June? - but it’s in time for this data to be taken into the P800 calculation if they ran on the usual cycle. Which they haven’t, this year. The reason is that HMRC has been overstretched, rather than they are waiting for something.

I have just checked and it is 30th June.

I wonder if they will pay any interest on the delayed rebate?

Yes.  For 2024-25 you will get, at current rates, 3.50% (per year).

For 2024-25 refunds they will pay this from 1 February 2026.

So for example a £200 refund paid a week after that would probably get you interest of 14 pence.  Which is exempt from tax.

https://www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates