Tax reimbursement

[Patrick Bateman]

2 years ago I had a reimbursement of ~£1000 only to find last year I was due them the same amount and my tax code was slashed to 394L for last year to repay this.

Now I get a letter and a cheque for £960 for apparently paying too much tax last year. Not to mention my tax code changing from 953L to 950L according to a letter dated the 17th of this month then I get a letter dated the 18th saying it's changed from 950L to 964L. I don't want to put this cheque in the bank only to find history repeat itself. What fkwit do I have to speak to for clarification on this? HMRC or my employer? I suspect both are as incompetent.

[LC23]

You need to speak to hmrc to understand what has been included on your tax code. Your employer has no say in this and legally has to operate the tax code sent to them by hmrc.

[Patrick Bateman]

Oh joy, they're always a pain to get in touch with.

[Eric Mc]

Do you receive any sort of taxable Benefit in Kind from your employer?

If you do, how large is this BIK?

[Patrick Bateman]

Medical Insurance at £354 is all I can see.

[Eric Mc]

If that is the case, your 2014/15 Tax Coding should be something like 965L (£10,000 tax free allowance less the Benefit in Kind of £354 = reduced tax allowance of ££9,646).

If it isn't 965L, you should be querying why it isn't.

[edc]

Is it because the PHI premium/renewal does not line up with the tax year.

[Eric Mc]

Patrick Bateman said:

Now I get a letter and a cheque for £960 for apparently paying too much tax last year. Not to mention my tax code changing from 953L to 950L according to a letter dated the 17th of this month then I get a letter dated the 18th saying it's changed from 950L to 964L. I don't want to put this cheque in the bank only to find history repeat itself. What fkwit do I have to speak to for clarification on this? HMRC or my employer? I suspect both are as incompetent.

964L sounds like the coding is now correct and you should be paying the exact amount of Income Tax you should be for 2014/15 through the PAYE deductions on your salary.


If HMRC asks you to pay more tax next tax year or refunds you tax next tax year, then there is definitely something wrong - or there is something about your tax affairs that is not being dealt with properly through the PAYE system

[Patrick Bateman]

I've had a closer look at the letter (for the year I supposedly underpaid tax) that breaks down how your tax is calculated, comparing the 'tax paid' with the 'tax chargeable' shows a difference of £58.40 but then there's an 'adjustment' of over £1000 with no explanation. Is phoning them up likely to result in any clarity? I only remember them being impossible to get through to before.

[Eric Mc]

Who knows.

It depends on how good at explaining the person at the other end of the phone is. It can be very hit and miss.