Old tax calculation

MrChips

Hello!

This query relates to a tax calculation (for my wife) from 2017/18 so I guess the first question is is that too long ago to be able to be put right (if it is indeed wrong).. see below.

She received a tax calculation statement dated 4 February 2019 saying she owed £84.80 additional tax for 2017/18, including a calculation setting out her income and untaxed interest versus the income tax paid (via her employer).  Overall income was around £50k.  She does not complete a self assessment form.  We promptly paid the £84.80 via debit card.

She then received another, very similar, looking statement dated 7 April 2019 in respect of the same tax year saying she had overpaid tax for 2017/18 and was owed £906.66 (which was then paid into her bank account).

While the income and tax paid were the same as the original statement, this one seems to have increased her basic rate band from £33,500 to £36,853 (I'm unsure why, because a google search suggests the band was indeed £33,500).  It also includes £320.30 of "other adjustments" against the tax due without explaining what these are.

Other than not understanding the two points in the previous paragraph (which work in her favour) my issue with the revised calculation is that the tax paid figure was not adjusted to take into account the additional £84.80 of tax she had paid and which seems to have simply disappeared.  Surely that should have been refunded as well.  Unless the "other adjustments" figure relates, at least in part, to that?

Is anyone more experienced in these matters able to shed any light?  If the £84.80 should indeed have been refunded as well then we'd like to ask for it back.  But if we're too late to do that, then so be it.

Dazed_and_C0nfused

MrChips said:

Hello!

This query relates to a tax calculation (for my wife) from 2017/18 so I guess the first question is is that too long ago to be able to be put right (if it is indeed wrong).. see below.

She received a tax calculation statement dated 4 February 2019 saying she owed £84.80 additional tax for 2017/18, including a calculation setting out her income and untaxed interest versus the income tax paid (via her employer).  Overall income was around £50k.  She does not complete a self assessment form.  We promptly paid the £84.80 via debit card.

She then received another, very similar, looking statement dated 7 April 2019 in respect of the same tax year saying she had overpaid tax for 2017/18 and was owed £906.66 (which was then paid into her bank account).

While the income and tax paid were the same as the original statement, this one seems to have increased her basic rate band from £33,500 to £36,853 (I'm unsure why, because a google search suggests the band was indeed £33,500).  It also includes £320.30 of "other adjustments" against the tax due without explaining what these are.

Other than not understanding the two points in the previous paragraph (which work in her favour) my issue with the revised calculation is that the tax paid figure was not adjusted to take into account the additional £84.80 of tax she had paid and which seems to have simply disappeared.  Surely that should have been refunded as well.  Unless the "other adjustments" figure relates, at least in part, to that?

Is anyone more experienced in these matters able to shed any light?  If the £84.80 should indeed have been refunded as well then we'd like to ask for it back.  But if we're too late to do that, then so be it.

Tax you pay direct to HMRC is never included in tax calculations.

The basic rate band is extended for one of two reasons, relief at source pension contributions and Gift Aid donations.  Do either apply to her (for that tax year)?

MrChips

Thanks for your reply.  I've done some digging through other statements and think I have an explanation for the two additional points:

1) She was owed £320.30 in respect of 2016/17 which was carried forward to this calculation.
2) The adjustment to the basic rate band was in respect of pension contributions

So in that case, it does look like the £84.80 was requested in error by HMRC and is owed back.  Would you agree? If so, are we too late?

Dazed_and_C0nfused

MrChips said:

Thanks for your reply.  I've done some digging through other statements and think I have an explanation for the two additional points:

1) She was owed £320.30 in respect of 2016/17 which was carried forward to this calculation.
2) The adjustment to the basic rate band was in respect of pension contributions

So in that case, it does look like the £84.80 was requested in error by HMRC and is owed back.  Would you agree? If so, are we too late?

Just to be clear, are you saying she paid £84.80 direct to HMRC and she got the £906 back but has never had the £84.80?

If so then yes, she should be entitled to it.  Assuming it hasn't been used to pay tax owed for a different tax year.

MrChips

Additional question, if tax paid direct is not included in future tax calculations, how do HMRC expect it to be reflected and made good?

Dazed_and_C0nfused

MrChips said:

Additional question, if tax paid direct is not included in future tax calculations, how do HMRC expect it to be reflected and made good?

That should happen independently of the tax calculation.  But involves another tax system so maybe there has been a breakdown in the process with your wife's case?

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye96335

MrChips

I'm almost certain the £84.80 was never refunded (can't be 100% as I guess it might have been slipped into a future tax code or "other adjustment" in a future tax calculation without being made explicit).

On that basis we'd like to ask for it back.  What's the best way of requesting this?  The reason it's lain dormant for six years is I could never persuade my wife it was important enough for her to spend one hour on hold to HMRC and then it got forgotten about after COVID.

Ideally, if there's a webform we could complete, or an email address we could send the details too that would be much easier.

MrChips

Good morning - is anyone able to help confirm if/how I can go about reclaiming the money?  I've tried online and the HMRC site sends me round in circles. It starts by asking what did I pay too much tax on, but none of the options apply (the tax doesn't relate to a single thing like a job or interest, it relates to an error in their tax calculation).

I also found something which said anything relating to tax years before April 2021 was too late...

Dazed_and_C0nfused

MrChips said:

Good morning - is anyone able to help confirm if/how I can go about reclaiming the money?  I've tried online and the HMRC site sends me round in circles. It starts by asking what did I pay too much tax on, but none of the options apply (the tax doesn't relate to a single thing like a job or interest, it relates to an error in their tax calculation).

I also found something which said anything relating to tax years before April 2021 was too late...

You are overcomplicating things.

It's not your money so you can't claim it, you need to get your wife to call, ideally 8am sharp to avoid a long wait.

She isn't asking for a "tax" refund so dates really aren't a factor (other than HMRC locating her money) she is asking for a refund of the payment she made.

MrChips

Thank you.  Was hoping for a way of doing it in writing as my wife won't really fully understand what's going on in order to explain to the call centre operative, English isn't her first language and we're frantically preparing to go on holiday so don't really have an hour to spare to sit on hold.  But if that's the only way, so be it!

Dazed_and_C0nfused

MrChips said:

Thank you.  Was hoping for a way of doing it in writing as my wife won't really fully understand what's going on in order to explain to the call centre operative, English isn't her first language and we're frantically preparing to go on holiday so don't really have an hour to spare to sit on hold.  But if that's the only way, so be it!

She (you) could send a letter, just make it clear it's a refund of the payment she has made that is what you are after.