Overpaid Tax - how to get it back

sheramber

Pat38493 said:

Dazed_and_C0nfused said:

Pat38493 said:

molerat said:

Pat38493 said:

molerat said:

Back of a fag packet calculation

Tax due on £46630 = £6810 + £1134 owed from last year = £7944 due

Tax paid on job to date £6630

Tax paid on pension to date £3110

Total tax paid to date £9740

Total tax paid on pension of £13320 by end of year £1080 = £2030 refund

£9740 - £2030 = £7710  paid

OK so you are saying that the current tax code they have allocated will actually give the correct results (or pretty close)?

Pretty much.  At M8, November, on a code of 791 you are due £720 tax on the pension YTD and have paid £3110 so should see a payment of the full monthly pension + £2390.  Then each month going forward you should pay around £90 tax so £360 for the rest of the year with total tax paid over the year of -£2030

OK well I got new information directly from my pension provider - they are saying that the tax code they received was 791L/0 - the /0 is not showing up on the gov.uk portal for me, but I think this makes a difference right?  This means I won't get a refund on past overpaid.

The 0 isn't part of your tax code.

It means the code is to be used on a cumulative basis. 

So one of two things will happen now, they have got your previous earnings info and all should be reasonably accurate.  Or they don't and you will get a massive refund when they next pay your pension, which won't factor in the previous earnings.

How long before your (pension) payslip is available?

They said it will be used from 1st January (I guess it's too late for them to use it from 1st December).

So Google AI is wrong when it says about /0 "This element (sometimes shown as W1, M1, or X) indicates that your tax is being calculated on a non-cumulative or "week 1/month 1 basis!""?   You are saying it means that it is on a cumulative basis.

Have you heard today’s warning about not blindly trusting A1?

flaneurs_lobster

sheramber said:

Have you heard today’s warning about not blindly trusting A1?

https://www.bbc.co.uk/news/articles/c8drzv37z4jo

He's the CEO of Alphabet (Google et al) so he ought to know of what he speaks.

Dazed_and_C0nfused

sheramber said:

Pat38493 said:

Dazed_and_C0nfused said:

Pat38493 said:

molerat said:

Pat38493 said:

molerat said:

Back of a fag packet calculation

Tax due on £46630 = £6810 + £1134 owed from last year = £7944 due

Tax paid on job to date £6630

Tax paid on pension to date £3110

Total tax paid to date £9740

Total tax paid on pension of £13320 by end of year £1080 = £2030 refund

£9740 - £2030 = £7710  paid

OK so you are saying that the current tax code they have allocated will actually give the correct results (or pretty close)?

Pretty much.  At M8, November, on a code of 791 you are due £720 tax on the pension YTD and have paid £3110 so should see a payment of the full monthly pension + £2390.  Then each month going forward you should pay around £90 tax so £360 for the rest of the year with total tax paid over the year of -£2030

OK well I got new information directly from my pension provider - they are saying that the tax code they received was 791L/0 - the /0 is not showing up on the gov.uk portal for me, but I think this makes a difference right?  This means I won't get a refund on past overpaid.

The 0 isn't part of your tax code.

It means the code is to be used on a cumulative basis. 

So one of two things will happen now, they have got your previous earnings info and all should be reasonably accurate.  Or they don't and you will get a massive refund when they next pay your pension, which won't factor in the previous earnings.

How long before your (pension) payslip is available?

They said it will be used from 1st January (I guess it's too late for them to use it from 1st December).

So Google AI is wrong when it says about /0 "This element (sometimes shown as W1, M1, or X) indicates that your tax is being calculated on a non-cumulative or "week 1/month 1 basis!""?   You are saying it means that it is on a cumulative basis.

Have you heard today’s warning about not blindly trusting A1?

Couldn't have got it more wrong if they tried!

@Pat38493 there is information here about what your pension company could receive from from HMRC.  This can include details of previous pay and tax.

 https://www.gov.uk/employee-tax-codes/changes

Have you checked with AI what a 1 after a tax code would mean?

eskbanker

sheramber said:
Have you heard today’s warning about not blindly trusting A1?

Well it is just a road, so even less able to impart trustworthy information than AI!

Pat38493

sheramber said:

Pat38493 said:

Dazed_and_C0nfused said:

Pat38493 said:

molerat said:

Pat38493 said:

molerat said:

Back of a fag packet calculation

Tax due on £46630 = £6810 + £1134 owed from last year = £7944 due

Tax paid on job to date £6630

Tax paid on pension to date £3110

Total tax paid to date £9740

Total tax paid on pension of £13320 by end of year £1080 = £2030 refund

£9740 - £2030 = £7710  paid

OK so you are saying that the current tax code they have allocated will actually give the correct results (or pretty close)?

Pretty much.  At M8, November, on a code of 791 you are due £720 tax on the pension YTD and have paid £3110 so should see a payment of the full monthly pension + £2390.  Then each month going forward you should pay around £90 tax so £360 for the rest of the year with total tax paid over the year of -£2030

OK well I got new information directly from my pension provider - they are saying that the tax code they received was 791L/0 - the /0 is not showing up on the gov.uk portal for me, but I think this makes a difference right?  This means I won't get a refund on past overpaid.

The 0 isn't part of your tax code.

It means the code is to be used on a cumulative basis. 

So one of two things will happen now, they have got your previous earnings info and all should be reasonably accurate.  Or they don't and you will get a massive refund when they next pay your pension, which won't factor in the previous earnings.

How long before your (pension) payslip is available?

They said it will be used from 1st January (I guess it's too late for them to use it from 1st December).

So Google AI is wrong when it says about /0 "This element (sometimes shown as W1, M1, or X) indicates that your tax is being calculated on a non-cumulative or "week 1/month 1 basis!""?   You are saying it means that it is on a cumulative basis.

Have you heard today’s warning about not blindly trusting A1?

I am aware that AI often gets it wrong - that’s why I am also asking here

Pat38493

Dazed_and_C0nfused said:

sheramber said:

Pat38493 said:

Dazed_and_C0nfused said:

Pat38493 said:

molerat said:

Pat38493 said:

molerat said:

Back of a fag packet calculation

Tax due on £46630 = £6810 + £1134 owed from last year = £7944 due

Tax paid on job to date £6630

Tax paid on pension to date £3110

Total tax paid to date £9740

Total tax paid on pension of £13320 by end of year £1080 = £2030 refund

£9740 - £2030 = £7710  paid

OK so you are saying that the current tax code they have allocated will actually give the correct results (or pretty close)?

Pretty much.  At M8, November, on a code of 791 you are due £720 tax on the pension YTD and have paid £3110 so should see a payment of the full monthly pension + £2390.  Then each month going forward you should pay around £90 tax so £360 for the rest of the year with total tax paid over the year of -£2030

OK well I got new information directly from my pension provider - they are saying that the tax code they received was 791L/0 - the /0 is not showing up on the gov.uk portal for me, but I think this makes a difference right?  This means I won't get a refund on past overpaid.

The 0 isn't part of your tax code.

It means the code is to be used on a cumulative basis. 

So one of two things will happen now, they have got your previous earnings info and all should be reasonably accurate.  Or they don't and you will get a massive refund when they next pay your pension, which won't factor in the previous earnings.

How long before your (pension) payslip is available?

They said it will be used from 1st January (I guess it's too late for them to use it from 1st December).

So Google AI is wrong when it says about /0 "This element (sometimes shown as W1, M1, or X) indicates that your tax is being calculated on a non-cumulative or "week 1/month 1 basis!""?   You are saying it means that it is on a cumulative basis.

Have you heard today’s warning about not blindly trusting A1?

Couldn't have got it more wrong if they tried!

@Pat38493 there is information here about what your pension company could receive from from HMRC.  This can include details of previous pay and tax.

 https://www.gov.uk/employee-tax-codes/changes

Have you checked with AI what a 1 after a tax code would mean?

Yeah - if you actually google “what does /0 after a tax code mean” or “what does /1 after a tax code mean”, you get the correct answer per your answer i.e. /0 means cumulative, /1 means non cumulative.

However if you google “what does tax code 791L/0 mean” you get a comprehensive answer, but the part about the /0 is wrong!  Often if you ask the same question several times to AI, you get different answer, but in this case, it has been wrong every time.

So back to the point - /0 means cumulative so based on the tax code they were given I will get a big refund (possibly too big but at least I get some of the tax back).

Dazed_and_C0nfused

Pat38493 said:

Dazed_and_C0nfused said:

sheramber said:

Pat38493 said:

Dazed_and_C0nfused said:

Pat38493 said:

molerat said:

Pat38493 said:

molerat said:

Back of a fag packet calculation

Tax due on £46630 = £6810 + £1134 owed from last year = £7944 due

Tax paid on job to date £6630

Tax paid on pension to date £3110

Total tax paid to date £9740

Total tax paid on pension of £13320 by end of year £1080 = £2030 refund

£9740 - £2030 = £7710  paid

OK so you are saying that the current tax code they have allocated will actually give the correct results (or pretty close)?

Pretty much.  At M8, November, on a code of 791 you are due £720 tax on the pension YTD and have paid £3110 so should see a payment of the full monthly pension + £2390.  Then each month going forward you should pay around £90 tax so £360 for the rest of the year with total tax paid over the year of -£2030

OK well I got new information directly from my pension provider - they are saying that the tax code they received was 791L/0 - the /0 is not showing up on the gov.uk portal for me, but I think this makes a difference right?  This means I won't get a refund on past overpaid.

The 0 isn't part of your tax code.

It means the code is to be used on a cumulative basis. 

So one of two things will happen now, they have got your previous earnings info and all should be reasonably accurate.  Or they don't and you will get a massive refund when they next pay your pension, which won't factor in the previous earnings.

How long before your (pension) payslip is available?

They said it will be used from 1st January (I guess it's too late for them to use it from 1st December).

So Google AI is wrong when it says about /0 "This element (sometimes shown as W1, M1, or X) indicates that your tax is being calculated on a non-cumulative or "week 1/month 1 basis!""?   You are saying it means that it is on a cumulative basis.

Have you heard today’s warning about not blindly trusting A1?

Couldn't have got it more wrong if they tried!

@Pat38493 there is information here about what your pension company could receive from from HMRC.  This can include details of previous pay and tax.

 https://www.gov.uk/employee-tax-codes/changes

Have you checked with AI what a 1 after a tax code would mean?

Yeah - if you actually google “what does /0 after a tax code mean” or “what does /1 after a tax code mean”, you get the correct answer per your answer i.e. /0 means cumulative, /1 means non cumulative.

However if you google “what does tax code 791L/0 mean” you get a comprehensive answer, but the part about the /0 is wrong!  Often if you ask the same question several times to AI, you get different answer, but in this case, it has been wrong every time.

So back to the point - /0 means cumulative so based on the tax code they were given I will get a big refund (possibly too big but at least I get some of the tax back).

What will happen will depend on whether your pension company,

A) uses the new tax code against your pension income only or 

factors in the previous earnings and tax deducted by your ex employer.

Pat38493

Dazed_and_C0nfused said:

Pat38493 said:

Dazed_and_C0nfused said:

sheramber said:

Pat38493 said:

Dazed_and_C0nfused said:

Pat38493 said:

molerat said:

Pat38493 said:

molerat said:

Back of a fag packet calculation

Tax due on £46630 = £6810 + £1134 owed from last year = £7944 due

Tax paid on job to date £6630

Tax paid on pension to date £3110

Total tax paid to date £9740

Total tax paid on pension of £13320 by end of year £1080 = £2030 refund

£9740 - £2030 = £7710  paid

OK so you are saying that the current tax code they have allocated will actually give the correct results (or pretty close)?

Pretty much.  At M8, November, on a code of 791 you are due £720 tax on the pension YTD and have paid £3110 so should see a payment of the full monthly pension + £2390.  Then each month going forward you should pay around £90 tax so £360 for the rest of the year with total tax paid over the year of -£2030

OK well I got new information directly from my pension provider - they are saying that the tax code they received was 791L/0 - the /0 is not showing up on the gov.uk portal for me, but I think this makes a difference right?  This means I won't get a refund on past overpaid.

The 0 isn't part of your tax code.

It means the code is to be used on a cumulative basis. 

So one of two things will happen now, they have got your previous earnings info and all should be reasonably accurate.  Or they don't and you will get a massive refund when they next pay your pension, which won't factor in the previous earnings.

How long before your (pension) payslip is available?

They said it will be used from 1st January (I guess it's too late for them to use it from 1st December).

So Google AI is wrong when it says about /0 "This element (sometimes shown as W1, M1, or X) indicates that your tax is being calculated on a non-cumulative or "week 1/month 1 basis!""?   You are saying it means that it is on a cumulative basis.

Have you heard today’s warning about not blindly trusting A1?

Couldn't have got it more wrong if they tried!

@Pat38493 there is information here about what your pension company could receive from from HMRC.  This can include details of previous pay and tax.

 https://www.gov.uk/employee-tax-codes/changes

Have you checked with AI what a 1 after a tax code would mean?

Yeah - if you actually google “what does /0 after a tax code mean” or “what does /1 after a tax code mean”, you get the correct answer per your answer i.e. /0 means cumulative, /1 means non cumulative.

However if you google “what does tax code 791L/0 mean” you get a comprehensive answer, but the part about the /0 is wrong!  Often if you ask the same question several times to AI, you get different answer, but in this case, it has been wrong every time.

So back to the point - /0 means cumulative so based on the tax code they were given I will get a big refund (possibly too big but at least I get some of the tax back).

What will happen will depend on whether your pension company,

A) uses the new tax code against your pension income only or 

factors in the previous earnings and tax deducted by your ex employer.

Based on the email reply that they sent me, it's just A because they only said they had received a new tax code and nothing else in their email to me.

That said, according to molerat on this thread, the tax code 791L should give roughly the correct situation at tax year end, based on the total of the other earned income that I mentioned earlier.  If 791L/0 results in me paying £1080 tax on that income stream by year end, when combined with the £6630 that was deducted by the previous employer, the end results should be in the right ballpark for my combined total earnings of:
 £33310 taxable income on the employment income which had a code of 981L before I left. (this is what was reported on the P45/last payslip, net of pension contributions, medical insurance etc).
- £13320 (plus inflation increase from January) DB pension which was on D0 now changed to 791L.
- Estimated about £900 of savings income by year end.
- Underpaid tax from 24/25 as discussed above of £1134.

So actually maybe it's all good...

Dazed_and_C0nfused

Pat38493 said:

Dazed_and_C0nfused said:

Pat38493 said:

Dazed_and_C0nfused said:

sheramber said:

Pat38493 said:

Dazed_and_C0nfused said:

Pat38493 said:

molerat said:

Pat38493 said:

molerat said:

Back of a fag packet calculation

Tax due on £46630 = £6810 + £1134 owed from last year = £7944 due

Tax paid on job to date £6630

Tax paid on pension to date £3110

Total tax paid to date £9740

Total tax paid on pension of £13320 by end of year £1080 = £2030 refund

£9740 - £2030 = £7710  paid

OK so you are saying that the current tax code they have allocated will actually give the correct results (or pretty close)?

Pretty much.  At M8, November, on a code of 791 you are due £720 tax on the pension YTD and have paid £3110 so should see a payment of the full monthly pension + £2390.  Then each month going forward you should pay around £90 tax so £360 for the rest of the year with total tax paid over the year of -£2030

OK well I got new information directly from my pension provider - they are saying that the tax code they received was 791L/0 - the /0 is not showing up on the gov.uk portal for me, but I think this makes a difference right?  This means I won't get a refund on past overpaid.

The 0 isn't part of your tax code.

It means the code is to be used on a cumulative basis. 

So one of two things will happen now, they have got your previous earnings info and all should be reasonably accurate.  Or they don't and you will get a massive refund when they next pay your pension, which won't factor in the previous earnings.

How long before your (pension) payslip is available?

They said it will be used from 1st January (I guess it's too late for them to use it from 1st December).

So Google AI is wrong when it says about /0 "This element (sometimes shown as W1, M1, or X) indicates that your tax is being calculated on a non-cumulative or "week 1/month 1 basis!""?   You are saying it means that it is on a cumulative basis.

Have you heard today’s warning about not blindly trusting A1?

Couldn't have got it more wrong if they tried!

@Pat38493 there is information here about what your pension company could receive from from HMRC.  This can include details of previous pay and tax.

 https://www.gov.uk/employee-tax-codes/changes

Have you checked with AI what a 1 after a tax code would mean?

Yeah - if you actually google “what does /0 after a tax code mean” or “what does /1 after a tax code mean”, you get the correct answer per your answer i.e. /0 means cumulative, /1 means non cumulative.

However if you google “what does tax code 791L/0 mean” you get a comprehensive answer, but the part about the /0 is wrong!  Often if you ask the same question several times to AI, you get different answer, but in this case, it has been wrong every time.

So back to the point - /0 means cumulative so based on the tax code they were given I will get a big refund (possibly too big but at least I get some of the tax back).

What will happen will depend on whether your pension company,

A) uses the new tax code against your pension income only or 

factors in the previous earnings and tax deducted by your ex employer.

Based on the email reply that they sent me, it's just A because they only said they had received a new tax code and nothing else in their email to me.

That said, according to molerat on this thread, the tax code 791L should give roughly the correct situation at tax year end, based on the total of the other earned income that I mentioned earlier.  If 791L/0 results in me paying £1080 tax on that income stream by year end, when combined with the £6630 that was deducted by the previous employer, the end results should be in the right ballpark for my combined total earnings of:
 £33310 taxable income on the employment income which had a code of 981L before I left. (this is what was reported on the P45/last payslip, net of pension contributions, medical insurance etc).
- £13320 (plus inflation increase from January) DB pension which was on D0 now changed to 791L.
- Estimated about £900 of savings income by year end.
- Underpaid tax from 24/25 as discussed above of £1134.

So actually maybe it's all good...

Well assuming the £1,134 is the final position for 24/25 then I think it would leave you owing HMRC ~£235.