PAYE refund

HJH07

can any one please help. HMRC have agreed that my husband overpaid tax of approx £200 over the last two years and are going to adjust his tax code next year to pay him back. We though he was going to receive the rebate as a cheque - the amount owing would be more useful to us as a lump sum. Does any one know if we can ask them to do this instead? It seems a bit unfair that HMRC can dictate how money owed to us is paid back when it was his employer’s error, not ours. I have scoured the internet and not come up with anything. I have not tried HMRC as I am not convinced they would tell us what we can actually do.
Many thanks.

fengirl_2

How cheeky - I havn't heard of this!
You are entitled to ask for the refund in one lump sum - not least because interest will be payable on the refund for y/e 2006.

HJH07

Thank you. I thought it sounded a bit unfair but didn't want to waste our time arguing with them if they are entitled to do this and we have no right to a lump sum.
We will see how we get on.

System

I agree with fengirl. I've never heard of HMRC doing this before. Tell your husband to get on the phone and tell HMRC that a coding adjustment is not acceptable.

robnye

definately ask for it now....... give them a ring

dori2o

what is the refund for?

If it is simply overpaid tax due to a coding error for example, then it should be paid as a lump sum plus repayment suppliment for the corresponding years.

If however it is a repayment following a claim for allowable expenses, i.e. mileage, tools etc, then the repayment of tax should be paid via an allowance included in the tax code (Earlier Years Adjustment) in the first available tax year. This will now be 2008/09 as no further coding notices will be issued for this tax year.

jennifernil

We always ask for a direct repayment. There is a box to tick on the Self Assessment form for this. You do not need to accept it via coding for the next year.
Similarly you can elect to pay any underpaid tax in one payment rather than via your code number for the following year.
I always like to keep each year separate, makes it easier to check OH is paying the correct amount.

CannyJock

dori2o wrote: »

what is the refund for?

If it is simply overpaid tax due to a coding error for example, then it should be paid as a lump sum plus repayment suppliment for the corresponding years.

If however it is a repayment following a claim for allowable expenses, i.e. mileage, tools etc, then the repayment of tax should be paid via an allowance included in the tax code (Earlier Years Adjustment) in the first available tax year. This will now be 2008/09 as no further coding notices will be issued for this tax year.

I claimed back allowable expenses for the previous 6 years and got it all as a cheque. I made it clear in my correspondence that I wanted a refund with interest and I got it without any quibbles (though not without a bit of haggling over what was and wasn't allowable).