P800 Tax Calculation help

[di30]

Re: P800 Tax Calculation help

Ok thank you.

She did say at some point, if she can manage to pay them in full she will try to do so, if they didnt include the overpayment due to her from an earlier year, she would owe something in the region of £698 approx.

With using the overpayment of £449, that would then leave her with £298.91.

I did say if she could manage the £298.91, they did say about using the overpayment anyway on top of that anyway, so she wouldnt have to pay the full total.

If she decided to do this then I assume she would have to send them the payment by cheque, or can she do this by debit card do you know please?

Sorry for all the questions, I thought I would ask this in advance as it's something I think she will be asking next lol, cheers.

[SXGuy]

Re: P800 Tax Calculation help

that im not sure, never dealt with this with such a big amount before.

Since they have already used the overpayment to reduce the underpayment, they may just refund the whole lot via her tax code, or write a cheque for the overpayment and recode her for the underpayment balance.

more likely be the latter though i reckon.

[di30]

Re: P800 Tax Calculation help

Cheers

So a cheque for the overpayment they were to originally refund her for the 2008-09 period, then whatever they overtaxed her by then?

[SXGuy]

Re: P800 Tax Calculation help

yeah thats how they should do it.

If they find in her favour, the tax code will be changed once again and she will get a tax rebate the following month for whatever shes paid up to that point.

Refunds are different to payments, refunds are paid in full in one pay period, underpayments are split over the year.

[di30]

Re: P800 Tax Calculation help

yep, thats spread over 1 year split into the amount of pay periods she receives, so monthly being 12, weekly being 52 etc.

Plus her new tax code is not that much more than her current one, because of the increase in tax allowance next year, so i doubt she will see any difference in wage.

Excellent, thank you.
I have just worked it out then that she will owe £124.46 for the following year, so yes getting it now lol, cheers.

Meanwhile, "If" it ends up being the responsibility of the employer, the HMRC will put the tax code right through the employer and refund the one owing?

[SXGuy]

Re: P800 Tax Calculation help

yep, thats spread over 1 year split into the amount of pay periods she receives, so monthly being 12, weekly being 52 etc.

Plus her new tax code is not that much more than her current one, because of the increase in tax allowance next year, so i doubt she will see any difference in wage.

[di30]

Re: P800 Tax Calculation help

no its correct, they want her to replay £124.45 each year for 2 years.

it doesnt say she owes £622. thats gross deduction.

to be able to repay 124.45 in tax for the year, they have to reduce her tax code by the gross amount.

622 / 100 * 20% = 124.40

Personal Allowance £9440
Underpayment Restriction -£622
a tax free amount of £8818

she still receives the difference between 622 and 124.45 as pay

Hi

Oh right, thanks.
See told you I was confused as well lol.
I thought where it said on the tax coding notice above (Underpayment Restriction) £622, it was what she did originally owe before deducting the refund that would have been due to her.

I will show her what you said, it's easier than me explaining I think lol.

So with the £124.45 is that spread just for the year then with using the refund then I take it?

thanks.

[SXGuy]

Re: P800 Tax Calculation help

no its correct, they want her to replay £124.45 each year for 2 years.

it doesnt say she owes £622. thats gross deduction.

to be able to repay 124.45 in tax for the year, they have to reduce her tax code by the gross amount.

622 / 100 * 20% = 124.40

Personal Allowance £9440
Underpayment Restriction -£622
a tax free amount of £8818

she still receives the difference between 622 and 124.45 as pay

[di30]

Re: P800 Tax Calculation help

...........Right ok, been looking back at her info she provided me in the past and they did mention to repay over the 2 year period, so the amount they stated is for a year only, then the other half must be the year after??

But............if this is the case, they would not have used the refund of what is due to her???

Now is it me getting confused? lol

So she owes in full was £622 as shown on today's tax coding notice.

Tax overpaid 2008-09 £443.71
plus repayment supplement where appropriate £6.18
= £449.89

But on the p800 2010-11 year letter it states after using the above overpayment that would have been due for her, the total balance she would owe would come down to:
£248.91.

It doesnt look like they taken the deduction of the refund into account does it?

[di30]

Re: P800 Tax Calculation help

As said above earlier.........

Below on permission of "J" is the coding notice letter.....
She is confused on the fact it says on the P800 letter that after using the underpayment of £449 odd, there will be £248.91 she has to pay, and on this letter they say on the new coding notice she received today "£124.45".
I havent a clue either lol, cheers.

[di30]

Re: P800 Tax Calculation help

"J" received her new tax code notice in the post today for 2013 to 2014.

She did give me permission to attach, so if I can I shall do this shortly.

This is what it's going to be:

Personal Allowance £9440
Underpayment Restriction -£622
a tax free amount of £8818

So the tax code they will be using is 881L from 6 April and they already contacted the employer to use this code as from then on.

There is something she is confused on and I am too, so not sure how to advise, as you will note from above posts attachments the amount due, but on the NOTES of this coding notice it says:
"We previously told you that you owe £124.45 tax from an earlier tax year. To collect this we have reduced your tax free code amount by £622.00. We expect you to pay tax at 20% on an extra £622 this year and this should collect the amount due (£622.00 at 20% is £124.45)"

She is confused on the amount of £124.45 they say is due, for the fact that the P800 tax calculations says a different amount due, and they were to use the underpayment from her other one where she was due a payment of refund.

I will scan the details up as soon as I can, maybe you may know how they worked this out perhaps, cheers.

[SXGuy]

Re: P800 Tax Calculation help

yeah thats pretty much it, just a waiting game, can take a few months depending on backlog, but maybe quicker, depends what department deal with it.

if its PAYE could be quicker, if its general compliance, its anyones guess.

[di30]

Re: P800 Tax Calculation help

She should receive a response to the form, but not an acknowledgment it was served no. She can telephone and ask.

Ok,. thank you.
She did say she notes they received it via track and trace, so I should think as long as she is reassured it got there, then that would be ok, so just to wait now for them to come to a decision in time?

[SXGuy]

Re: P800 Tax Calculation help

She should receive a response to the form, but not an acknowledgment it was served no. She can telephone and ask.

[di30]

Re: P800 Tax Calculation help

Hi

Please would you know if "J" should receive an acknowledgement letter to say they received her A19 information?

She asked me last week to ask and I forgot lol, cheers.