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Old 19th Mar 2012, 20:01   #1
Nitefly
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Income Tax Reclaim Help

Hi,

My employees have massively over paid my tax this year through PAYE and I am entitled to a large sum back from HMRC. I am currently paying no tax on my weekly payslips (to compensate) but I want this money as soon as possible.

The problem is, how do you do this? The HMRC website seems broken and I go round in loops until I get to this page asking me to contact them (which is where the trail of 'my employees have overpaid me' always leads):

http://search2.hmrc.gov.uk/kbroker/h...59-1&tx0=49612

I was on hold for thirty minutes before I eventually punched the phone to the moon, walked through the wall of a nursery and ate a baby. Rage face 4eva.

Any advice? Surely it's not a case of sitting on hold until you speak to them

Thanks

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Old 19th Mar 2012, 20:03   #2
D.P.
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You may have to wait until the end of the tax year and file your taxes.
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Old 19th Mar 2012, 20:04   #3
Bear
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Im afraid it is. They kept screwing up my tax code so needed to call them to sort it out. Each time I called them I was on hold for 30 to 45mins
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Old 19th Mar 2012, 20:06   #4
Salsa
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When I got a tax rebate a couple of years ago pervious years' rebates were paid as a cheque direct from HMRC around a month after claiming them. The current years tax was paid mack as part of my payslip and took approx 2 months to come back.

I dont know if there is a way to immediately claim it back. You will likely have to wait at least a few weeks.

IIRC when I called them to sort it out I had to wait on hold for a good while. I just left my phone on speakerphone while I did other things.

/Salsa

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Old 19th Mar 2012, 20:07   #5
radderfire
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Have you seen this page:

http://www.hmrc.gov.uk/incometax/overpaid-thro-job.htm

Rgds
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Old 19th Mar 2012, 20:07   #6
Nitefly
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Thanks for the replies!

Quote:
Originally Posted by Salsa View Post
When I got a tax rebate a couple of years ago pervious years' rebates were paid as a cheque direct from HMRC around a month after claiming them. /Salsa
How exactly did you make the claim? Is there any form I can fill in and send off?

I'm happy to wait several weeks, but I want to put things into action as this tax year is coming to a close.

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Old 19th Mar 2012, 20:08   #7
Nitefly
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Quote:
Originally Posted by radderfire View Post
Keep clicking the links and see where you get to

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Old 19th Mar 2012, 20:11   #8
Salsa
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Quote:
Originally Posted by Nitefly View Post
Thanks for the replies!



How exactly did you make the claim? Is there any form I can fill in and send off?

I'm happy to wait several weeks, but I want to put things into action as this tax year is coming to a close.
I filled out a form which my employer provided me with and also phoned HMRC. It took bloomin ages to get through but once I got through to a nice lady she sorted the whole thing in around 10 mins. Was very simple.

/Salsa

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Old 19th Mar 2012, 20:13   #9
Nitefly
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Quote:
Originally Posted by Salsa View Post
I filled out a form which my employer provided me with and also phoned HMRC. It took bloomin ages to get through but once I got through to a nice lady she sorted the whole thing in around 10 mins. Was very simple.

/Salsa
Hmm, looks like I might have to just sit it out on hold tomorrow.

I need that money!

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Old 19th Mar 2012, 20:15   #10
Salsa
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Quote:
Originally Posted by Nitefly View Post
Hmm, looks like I might have to just sit it out on hold tomorrow.

I need that money!
My problem had arisen due to incorrectly being on emergency tax code since work did not process my old p45 properly when I started. I used a p46 but also phoned HMRC. No fast way of doing it unfortunately.

/Salsa

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Old 19th Mar 2012, 20:16   #11
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Quote:
Originally Posted by Nitefly View Post
Hi,

I am currently paying no tax on my weekly payslips (to compensate) but I want this money as soon as possible.
Need a bit more info of what has actually happened. Sounds like your tax code has recently been changed to correct something as you are currently paying no tax each week.

What is the tax code on your latest payslip? Does it end with an X, or Wk1, Mth1 or something similar, and what was the previous code (or codes)?
Last edited by chippie; 19th Mar 2012 at 20:23.
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Old 19th Mar 2012, 20:26   #12
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Quote:
Originally Posted by chippie View Post
Need a bit more info of what has actually happened. Sounds like your tax code has recently been changed to correct something as you are currently paying no tax each week.

What is the tax code on your latest payslip? Does it end with an X, or Wk1, Mth1 or something similar, and what was the previous code (or codes)?
Sadly, I cannot really give any more information without delving into what I feel should be private, I'm useless I know! Thank you for your help though

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Old 19th Mar 2012, 20:35   #13
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Quote:
Originally Posted by Nitefly View Post
Sadly, I cannot really give any more information without delving into what I feel should be private, I'm useless I know! Thank you for your help though
You don;t need to give any personal info. Your tax code doesn't give any personal details, but anyway....

I'll make some assumptions as to what has probably happened, and detail what may have been done to sort it out.

Sounds like something was wrong with your tax code for most of the year. Either excessive deductions (for example company benefits in the code that you don't actually receive) or you had a code of D0, D1, BR, or 0T.

I'll further assume that you should have the 'standard' code which gives you the personal allowance with no further allowances or deductions.

So, you discovered your code was wrong, or HMRC did, and it has been corrected.

Your new code is higher than the old code, so if before you were on 200L you are now on 747L. The new code will either be operated on a cumulative or non-cumulative basis. Non-cumulative will be denoted by and X, Wk1, Mth1, Wk.Mth1 or similar being shown after the code on your payslip.

If your new code is being operated on a non-cumulative basis then it may be that you are paying no tax each week, or a reduced amount compared to previously. If this is the case you will have to wait until the end of the year (5 April) to pass and wait for your employer to give you your P60. Then ask HMRC for a refund. If your employer is efficient and sends the details to HMRC quickly then you may be able to achieve this over the phone and have your refund within 14 days of your call. This does rely on your employer having provided the details to HMRC, Or write and send in your P60 (keep a copy for yourself) and you should get the repayment in 4-5 weeks. (This assumes you have had just the one job in the year - If more than one you need to wait for all employers to submit the details).

If your new code is cumulative, then you will have probably noticed that rather than paying no tax you will actually have had a refund through your wages by the tax figure being negative and added on to your pay for that pay period.

Without more info it's not easy to say exactly what the situation is.
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Old 19th Mar 2012, 21:01   #14
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Quote:
Originally Posted by chippie View Post
If your new code is cumulative, then you will have probably noticed that rather than paying no tax you will actually have had a refund through your wages by the tax figure being negative and added on to your pay for that pay period.

Without more info it's not easy to say exactly what the situation is.
Wow, thanks for all of that

The bit that I have quoted sounds right. If it helps I have switched from Tax code 500T (first 2 employers) to 747L (current employer). I think I'll phone them up and sort them out. Cheers

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Old 19th Mar 2012, 21:12   #15
chippie
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Quote:
Originally Posted by Nitefly View Post
Wow, thanks for all of that

The bit that I have quoted sounds right. If it helps I have switched from Tax code 500T (first 2 employers) to 747L. I think I'll phone them up and sort them out. Cheers
If that is the case, and you are now on 747L cumulative, then your employer will have already refunded any excess tax to you that had previously been deducted. There is nothing for HMRC to do in this case. They will take your figures though, and check if it's been done correctly. You will have to endure the queue though, which will be long.

Or work it out yourself. You will need to know your pay to date and tax to date and the week no, all from your last payslip. This should now include the pay and tax details from your previous employers. If it doesn't, then don't bother with the calculation below, as it needs your total pay so for for the year from all employments.

First, divide 7475 by 52, then multiply by the week number. That is the amount of personal allowance you will have had up to the date of that payslip.

Take that amount away from your total pay to date figure. Then work out 20% or the remaining amount. That is how much tax you should have paid to that point in time. Compare that to what your payslip shows as tax paid to date.

This assumes you are a basic rate taxpayer, so earnings less than. If you are a higher rate taxpayer (expected annual income over £42475) then that calculation won't work. If you want i'll post how to figure it out if you are higher rate, or if you don't want to post that info, send me an email (address in trust) and i'll email back the calculation, and won't tell anyone!
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Old 19th Mar 2012, 21:25   #16
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You'll find out that after contacting them, that they owe you nothing, and you owe them even more.



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Old 19th Mar 2012, 21:41   #17
Nitefly
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Quote:
Originally Posted by chippie View Post
If that is the case, and you are now on 747L cumulative, then your employer will have already refunded any excess tax to you that had previously been deducted. There is nothing for HMRC to do in this case. They will take your figures though, and check if it's been done correctly. You will have to endure the queue though, which will be long.

Or work it out yourself. You will need to know your pay to date and tax to date and the week no, all from your last payslip. This should now include the pay and tax details from your previous employers. If it doesn't, then don't bother with the calculation below, as it needs your total pay so for for the year from all employments.

First, divide 7475 by 52, then multiply by the week number. That is the amount of personal allowance you will have had up to the date of that payslip.

Take that amount away from your total pay to date figure. Then work out 20% or the remaining amount. That is how much tax you should have paid to that point in time. Compare that to what your payslip shows as tax paid to date.

This assumes you are a basic rate taxpayer, so earnings less than. If you are a higher rate taxpayer (expected annual income over £42475) then that calculation won't work. If you want i'll post how to figure it out if you are higher rate, or if you don't want to post that info, send me an email (address in trust) and i'll email back the calculation, and won't tell anyone!
Thanks again

I had done my own tax calculations prior to this thread and it's clear that things are way out. I have been refunded all tax paid whilst with my third employer and this is shown in a payslip (from that point onwards I have been paying zero tax), but this hasn't compensated for the tax paid by employer 2. Undoubtedly, I am owed money, it's just a simple case of getting it!

I guess I'll sit on hold on the phone for an hour...

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Old 19th Mar 2012, 21:48   #18
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Do you have your P45s from your previous jobs this tax year? If you do it may not be too late to get the refund sorted out this tax year through your wages.

If you do have the P45s, then hopefully so do HMRC, so try the following.

Talk to your payroll department and find out when their cut off date for applying new tax codes is. If they say they still have time this year to use a new code, then ring HMRC. Check with your employer if they will accept a P6 to be faxed to them from HMRC. (P6 is the employer version of the notice of coding). If the answer to the first point is yes, then call HMRC and wait till you get to speak to someone.

Go through your jobs this tax year (from 6 April 2011) with them to check their records are complete, and make sure they have the P45 details from all previous jobs this tax year. If they have, then yo uwant them to issue a cumulative code to your current employer including your previous pay and tax. If our employer said they would accept a fax, ask them to fax the P6 to your employer. Otherwise you rely on the notice of coding getting to your employer electronically, or by post.

Your employer will then apply the new code with the previous pay and tax details, and give you a nice refund.

If HMRC (or you) don;t have all the P45 details, then this won't happen this tax year, and you will have to wait until after 6th April to get it sorted. Same if your employer says it's too late to apply a new code this year.
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Old 19th Mar 2012, 21:51   #19
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sorry to hijack this thread, I have an income tax related question:

Sometimes if you work hard, our company gives you bonuses, and it has happened that on occasions, I have been given extra money but with taxes/NI/student loans, it has worked out to be just couple of 100£.

Q: Could I ask them to recalculate tax because surely they shouldnt be taxing me at a higher rate if I get occasional bonus? (or am I way off here?)
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Old 19th Mar 2012, 21:59   #20
chippie
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Quote:
Originally Posted by ilcp View Post
sorry to hijack this thread, I have an income tax related question:

Sometimes if you work hard, our company gives you bonuses, and it has happened that on occasions, I have been given extra money but with taxes/NI/student loans, it has worked out to be just couple of 100£.

Q: Could I ask them to recalculate tax because surely they shouldnt be taxing me at a higher rate if I get occasional bonus? (or am I way off here?)
PAYE works cumulatively over the tax year. If you earn a steady amount each month, then you will pay the same each month over the year. If you get a large extra amount in one month, you will pay proportionally more tax on that one payment. However, it will even out over the coming months if your pay returns to normal.
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Old 19th Mar 2012, 22:04   #21
Nitefly
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Quote:
Originally Posted by chippie View Post
Do you have your P45s from your previous jobs this tax year? If you do it may not be too late to get the refund sorted out this tax year through your wages.

If you do have the P45s, then hopefully so do HMRC, so try the following.

Talk to your payroll department and find out when their cut off date for applying new tax codes is. If they say they still have time this year to use a new code, then ring HMRC. Check with your employer if they will accept a P6 to be faxed to them from HMRC. (P6 is the employer version of the notice of coding). If the answer to the first point is yes, then call HMRC and wait till you get to speak to someone.

Go through your jobs this tax year (from 6 April 2011) with them to check their records are complete, and make sure they have the P45 details from all previous jobs this tax year. If they have, then yo uwant them to issue a cumulative code to your current employer including your previous pay and tax. If our employer said they would accept a fax, ask them to fax the P6 to your employer. Otherwise you rely on the notice of coding getting to your employer electronically, or by post.

Your employer will then apply the new code with the previous pay and tax details, and give you a nice refund.

If HMRC (or you) don;t have all the P45 details, then this won't happen this tax year, and you will have to wait until after 6th April to get it sorted. Same if your employer says it's too late to apply a new code this year.
Superstar, this sounds genius! Will try it tomorrow

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Old 20th Mar 2012, 17:58   #22
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Quote:
Originally Posted by chippie View Post
PAYE works cumulatively over the tax year. If you earn a steady amount each month, then you will pay the same each month over the year. If you get a large extra amount in one month, you will pay proportionally more tax on that one payment. However, it will even out over the coming months if your pay returns to normal.

thanks
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Old 20th Mar 2012, 18:03   #23
Moses
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I just put all my Pwhatevers, and maybe pay slips, in an envelope, avec a cover letter (nothing fancy... basically, "yo, haz I bin overtaxed, blud?")... then sent it off to the HMRC address, I think. It was years back, so my memory's hazy!

The address may have been given to me over the phone.

It was zero hassle/I encountered no problem.
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Old 20th Mar 2012, 20:02   #24
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Firstly yes you will definately need to speak to them on the phone, I have to call them up every year to get a tax refund.

Secondly you might as well wait until the end of the financial year, as previously mentioned if your empoyers are efficient on their side, you will not need to do anything and after a simple call they will say they have everything they need and they will send you a cheque for £x. If you want the refund NOW you will have to fill out forms and send them off etc, which is why I always wait until the end of the financial year.
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Old 20th Mar 2012, 20:56   #25
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Superstar, this sounds genius! Will try it tomorrow
Do be quick though, I'd imagine it is nearly the cutoff for most monthly employers for the final pay run of the year!

If it makes you feel worse I can tell you a story of when HMRC mucked up my PAYE code. Rung the number, got bored of waiting after 5 minutes. Got the agent dedicated number (for tax advisors) which is higher priority than the normal line and got through straight away. Issue resolved nice and quickly.

The lady on the other end did get annoyed though, apparently not the proper use of the resource. I did offer to authorise my firm to be my registered agent which I could fax through and call her straight back after I'd authorised myself. She didn't take me up on it though.


Anál nathrach, orth’ bháis’s bethad, do chél dénmha
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