Income Tax Rebate :-)

[CC07 PEU]

I received an income tax rebate totally out of the blue for over £700 this morning. And you know what? It was for the year 2004-2005 - wtf... I'm not complaining though, that'll do nicely thanks

[hornetrider]

Definition of intaxication :

(ĭn-tăk'sĭ-kā'shən)

1.

1. (n.) Euphoria at getting a refund from the Inland Revenue, which lasts until one realizes it was one's own money to start with.

[Eric Mc]

CC07 PEU said:

I received an income tax rebate totally out of the blue for over £700 this morning. And you know what? It was for the year 2004-2005 - wtf... I'm not complaining though, that'll do nicely thanks

Why?

[CC07 PEU]

Eric Mc said:

CC07 PEU said:

I received an income tax rebate totally out of the blue for over £700 this morning. And you know what? It was for the year 2004-2005 - wtf... I'm not complaining though, that'll do nicely thanks

Why?

I'm not sure yet, I'll need to dig out an old P60 from back then to work out where they presumably overcharged me.

[Eric Mc]

Always worth checking. As we know, HMRC are not always right.

It is probbaly part of their overall PAYE review which has caused all the commotion over the past few weeks.

What you need to be reviewing are the various PAYE Tax Codes you were allocated over the years and ascertainibng whether they were right or wrong and, if they wwere wrong, why were they wrong.

[CC07 PEU]

I've looked into it and the reason was fairly straight forward. It was because back then, I started my first full time job having left University. However, I only worked for a limited period of time before the tax year ended. This meant that I was under the earnings threshold to be taxed. So I had been taxed anyway and now I have received it back five years later. There's no mention of them paying me the interest on that money though...

[Eric Mc]

Did you not realise you had paid too much tax?

Unfortunately, the PAYE system does not give interest on late tax refunds (or charge tax on late tax payments - if the late payments are collected under PAYE.

[CypherP]

I have a feeling I will end up with the same come next year. I was on a training wage in the armed forces for 6 months, earning a terrible wage and effectively halved by annual salary by doing so. Yet, when receiving my monthly pay slips, my old tax code remained unchanged and therefore spent the last 6 months paying the same tax as I paid for the last few years on half the wage I was on before.

I'm not sure whether to wait for a possible rebate on this, or to contact Inland Revenue and point this out now instead. Any thoughts?

[Eric Mc]

CypherP said:

I have a feeling I will end up with the same come next year. I was on a training wage in the armed forces for 6 months, earning a terrible wage and effectively halved by annual salary by doing so. Yet, when receiving my monthly pay slips, my old tax code remained unchanged and therefore spent the last 6 months paying the same tax as I paid for the last few years on half the wage I was on before.

I'm not sure whether to wait for a possible rebate on this, or to contact Inland Revenue and point this out now instead. Any thoughts?

Let them know straight away. Do not wait for them to act.

[DavidHM]

CypherP said:

I have a feeling I will end up with the same come next year. I was on a training wage in the armed forces for 6 months, earning a terrible wage and effectively halved by annual salary by doing so. Yet, when receiving my monthly pay slips, my old tax code remained unchanged and therefore spent the last 6 months paying the same tax as I paid for the last few years on half the wage I was on before.

I'm not sure whether to wait for a possible rebate on this, or to contact Inland Revenue and point this out now instead. Any thoughts?

Your tax code may not have changed - it's a reflection of the amount of your salary that is untaxed (as this amount is reduced by payment of benefits in kind). So if your salary went from £30k to £15k, your tax code wouldn't change (but the amount of tax payable would more than halve). However if you had the same tax code but lost benefits such as private medical insurance, company car etc. then you would have overpaid.

[minky monkey]

I had a result this week on the tax front too! £2065.

Mind you, I paid them 8k last year.

[Eric Mc]

minky monkey said:

I had a result this week on the tax front too! £2065.

Mind you, I paid them 8k last year.

Always understand WHY you are getting a refund. Make sure the calculation by HMRC is correct.

[Edinburger]

Can anyone suggest a tool or source of information to check tax codes, P11D benefits, etc., are correct?

[Eric Mc]

HMRC website.

the direct.gov website.

PH