P800 Tax Calculation help

[di30]

Re: P800 Tax Calculation help

Will pass the word on for her to try again Monday, not heard from her today, so whether or not she did end up getting through today I'm not sure.

She said she is now paying this inwork pension thingie that started last week, think its one of those new ones (Nest), but then said her payroll dept taken off double the amount this week to last week, so she supposed to be questioning the employer on that as well, and said with already being down on money (extra tax/ok not a lot), but with the employer just taking what they want for the pension she is noticing the difference now on the bring home pay with it being double this week.
So think she asking for an explanation on that too.

Again thank you ;-)

[SXGuy]

Re: P800 Tax Calculation help

The Pension scheme, is an automatic enrolment. She has to physically ask to opt out of it.

Her employer should have informed her of this pension and her right to opt out though!

Only affecting large compaines at the moment and moving down to small companies by 2018.

She needs to ask to be opted out, and make a note for 3 years time to opt out again, as its an automatic enrollment every 3 years regardless of whether you opted out previously.

[di30]

Re: P800 Tax Calculation help

Right J popped in for cuppa earlier with a smile on her face, she shown me a letter with an attached cheque, but is unclear what its for really despite it showing the year the refund is for, as she also put in a claim for uniform tax thingie, but the letter does not mention about that and it does say a letter has been sent separate to explain the calculation (that she not received yet), but it does say:

I am pleased to tell you that you are due a repayment of income tax for the year shown above, a cheque for £270 attached.

I looked at the top of the letter and it says TAX CALCULATION tax year: 2010-2011.

Now this was the one she been waiting to hear from of the underpayment.

And if you can recall, earlier in the posts, she overpaid on one of the years by £400 and something I think, 2008/09 year was it??

So if thats the case does this mean there was an overpayment afterall on the 2010-11 year and not underpayment?

And if thats the case, will they still be dealing with the earlier year where she had overpaid as well, maybe separately?

...........
I dont think that would be uniform tax refund, it seems too high, and surely they would not have the year 2010-11, as she went back 4 years??

Hoping this is good news for her now?

Thanks

[SXGuy]

Re: P800 Tax Calculation help

Is the payment the difference between what she overpaid in 08-09 and what she underpayed in 10-11?

Cant remember if previous posts gave both figures or not, but check that firstly.

If it is, then the amount shes been overpaying this year, will get corrected once they issue a new tax code.

She wont receive it as a cheque as its still the current tax year, but she will see a refund of tax on her payslip after the tax code has been updated.

This is just a guess at the moment, wont know more until she gets the calculation letter, which should be 2 or 3 days after the cheque.

When she gets the calculation, scan it and remove ID bits i.e name, address and N.I number or post the calculation here in order of the letter and we will see more clearly what it is.

[di30]

Re: P800 Tax Calculation help

Is the payment the difference between what she overpaid in 08-09 and what she underpayed in 10-11?

Cant remember if previous posts gave both figures or not, but check that firstly.

If it is, then the amount shes been overpaying this year, will get corrected once they issue a new tax code.

She wont receive it as a cheque as its still the current tax year, but she will see a refund of tax on her payslip after the tax code has been updated.

This is just a guess at the moment, wont know more until she gets the calculation letter, which should be 2 or 3 days after the cheque.

When she gets the calculation, scan it and remove ID bits i.e name, address and N.I number or post the calculation here in order of the letter and we will see more clearly what it is.

Thanks for that, I shall ask her to bring the calculation letter when she receives this.

So with uniform tax that is not usually sent by cheque then?

[SXGuy]

Re: P800 Tax Calculation help

The amount seems a little high for a uniform tax rebate. Thats my thinking anyway, according to HMRC it was something like £60 per year.

[di30]

Re: P800 Tax Calculation help

The amount seems a little high for a uniform tax rebate. Thats my thinking anyway, according to HMRC it was something like £60 per year.

Yes I thought that too, i know she asked to be backdated for 4 years, my hubby put one in too but not heard anything yet, he only done his 2 weeks ago. I hear it can take min of 5 weeks.

[di30]

Re: P800 Tax Calculation help

Ju had letter today but not calculation letter yet, she left the letter with me of the one that arrived in her morning's post. Good news though!


Dear

I'm sorry for the delay in replying.

Thank you for your letter 21 November 2012 about your P800 Tax Calculation for the year ending 5 April 2011, which we sent to you on 8 November 2012.

I have looked into your case and confirm that your employer did make an error or mistake. So, you do not have to pay the tax due shown the form P800 Tax Calculation for the year ended 5 April 2011.

You do not need to take any further action. We will contact your employer to collect the tax that is due.

Yours sincerely
Assistant Officer.
.................................................. ..................................

GREAT NEWS! Ju wants me to thank you for all your help and support, she said she could not have gone this far without your help SXguy and others on the site too. (She it not back online yet) but is planning to be soon and join the group to personally thank you).

However, no news on the calculation yet, but I said if I get the chance today I will go back on earlier posts and see where that refund may be in aid of.
In 2008-09 all I know is that she did overpay the sum of just over £400 something.

Thank you!

[cymruambyth]

Re: P800 Tax Calculation help

Great news. If you are prepared to fight it is possible to defeat the inland revenue! She could also ask for recompense for their having taken so long........We received £70 off them!

[di30]

Re: P800 Tax Calculation help

Great news. If you are prepared to fight it is possible to defeat the inland revenue! She could also ask for recompense for their having taken so long........We received £70 off them!

Cheers Cym x
I shall mention this to her

She still anxious what the £270 cheque was for she received yesterday lol, the letter should be on its way for that one (calculation letter).

[SXGuy]

Re: P800 Tax Calculation help

Thats brilliant news.

See, a perfect example of how its always a good idea to have an accountant :P

Not that she would usually require one, but a lot of self employed people get screwed over by HMRC simply because they do not have guidance.

Really chuffed for your friend, im glad its worked out.

Please still let me know when she gets the calculations because HMRC can still be wrong in their mathmatics.

(recently had one from them claiming capital gains tax is due and was out by 5k lol )

[di30]

Re: P800 Tax Calculation help

Thats brilliant news.

See, a perfect example of how its always a good idea to have an accountant :P

Not that she would usually require one, but a lot of self employed people get screwed over by HMRC simply because they do not have guidance.

Really chuffed for your friend, im glad its worked out.

Please still let me know when she gets the calculations because HMRC can still be wrong in their mathmatics.

(recently had one from them claiming capital gains tax is due and was out by 5k lol )

Cheers SXguy

I know this have made her day! (I must admit her employer/payroll seem to be useless) I believe this has been happening to others who work with her too.

Yes she said she will bring along her calculation letter once it arrives so i can post on here. Again thank you so much, and yep I do see what you mean lol.

Ouch 5K is a LOT!!!!!

[di30]

Re: P800 Tax Calculation help

Great news. If you are prepared to fight it is possible to defeat the inland revenue! She could also ask for recompense for their having taken so long........We received £70 off them!

Cwm Ju asked how do you go about a delay refund please?

(Think she wants to wait for all the calcs to come through first then go from there), thanks hun x

[di30]

Re: P800 Tax Calculation help

Came across photo copies of both Tax calculations for 2008-09 and 2010-11, will post what I can now and compare it to the calculations when they arrive back too.

Tax Calc 2008-09
Paye Income = £6904
JSA = £1225

Totals £8129

Income after taking away deductions £8129

Personal Allowance = £6035

Less total tax allowance £6035

Income tax is chargeable on this amount = £2094

Tax on 2094
Basic Rate @ 20% on £2094 £418.80

Tax chargeable = £418.80

Tax overpaiid £443.71

Plus Repayment Supplement (where appropriate) £6.18
Repayment due £449.89.

.................................................. .........................
2010-11

Paye income £20340 (Tax Refund 2074.20)

Totals £20340 (2074.20)

Income after taking away deductions = £20340

Personal Allowance = £6475
Less total allowance = £6475

Income tax is chargeable on this amount £13865

Tax on £13865 is:
Basic Rate @ 20% on £13865 = £2773.00

Tax chargeable = £2773.00

Less adjustments £449.89 (this is overpayment from 2008-09 they would also be using)
Less total adjustments £449.89

Tax payable b minus c (above) £2323.11

Tax underpaid (D minus A) £248.91
Tax underpaid = £248.91
...................................

Full overpayment would have been £698.80 now to be repaid by employer.
As HMRC were going to use the overpayment, that would still be due to Ju (£449.89)

However Ju received a cheque yesterday for the amount of £270.89 and it states for I Income tax year of 2010-2011.

No mention of anything to do with 2008-09 income tax year where she overpayed.

[SXGuy]

Re: P800 Tax Calculation help

hmm, does seem strange, new calculation breakdown due in the post will shed more light.