Tax brain

Old Apr 9th 2013, 1:56 pm
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Default Tax brain

Just seeking confirmation that my logic is reasonable please

I've just received a fairly sizable refund cheque from HMRC. This is for the year 2011-2012. During that year I was a higher rate taxpayer and paid tax through PAYE, no other earnings etc.
I left UK for here in early January 2012, filled in the R85 and received the NT coding.

I'm trying to work out if the refund is mine to keep based on the assumption that: PAYE is calculated on 12 months earnings/12. I only worked for 9 months which means my earnings in the higher rate tax bracket weren't as forecast. Therefore I would be due a refund on that basis. Does that sound right or is it wishful thinking on my part and they've made a mistake?
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Old Apr 9th 2013, 2:01 pm
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Default Re: Tax brain

Originally Posted by mikewot View Post
Just seeking confirmation that my logic is reasonable please

I've just received a fairly sizable refund cheque from HMRC. This is for the year 2011-2012. During that year I was a higher rate taxpayer and paid tax through PAYE, no other earnings etc.
I left UK for here in early January 2012, filled in the R85 and received the NT coding.

I'm trying to work out if the refund is mine to keep based on the assumption that: PAYE is calculated on 12 months earnings/12. I only worked for 9 months which means my earnings in the higher rate tax bracket weren't as forecast. Therefore I would be due a refund on that basis. Does that sound right or is it wishful thinking on my part and they've made a mistake?
Right - you were taxed monthly assuming that your annual earnings would be 12 times your monthly earnings.
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Old Apr 9th 2013, 2:05 pm
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Default Re: Tax brain

Originally Posted by gottheTshirt View Post
Right - you were taxed monthly assuming that your annual earnings would be 12 times your monthly earnings.
Thanks, getting excited now
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Old Apr 9th 2013, 2:06 pm
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Default Re: Tax brain

Originally Posted by mikewot View Post
Just seeking confirmation that my logic is reasonable please

I've just received a fairly sizable refund cheque from HMRC. This is for the year 2011-2012. During that year I was a higher rate taxpayer and paid tax through PAYE, no other earnings etc.
I left UK for here in early January 2012, filled in the R85 and received the NT coding.

I'm trying to work out if the refund is mine to keep based on the assumption that: PAYE is calculated on 12 months earnings/12. I only worked for 9 months which means my earnings in the higher rate tax bracket weren't as forecast. Therefore I would be due a refund on that basis. Does that sound right or is it wishful thinking on my part and they've made a mistake?
Yes that is correct.

Save, don't spend (all of) it.
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Old Apr 9th 2013, 2:12 pm
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Default Re: Tax brain

Originally Posted by Meow View Post
Yes that is correct.

Save, don't spend (all of) it.
Getting very excited now First time HMRC have ever given me a refund since I started work uuummmm, 42 years ago (now 56).
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Old Apr 9th 2013, 4:05 pm
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Default Re: Tax brain

I can give you a sure tip for the racing at Ayr !
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Old Apr 9th 2013, 5:14 pm
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Default Re: Tax brain

You will also have underutilised your Personal Allowance for the year, which will result in a tax credit being due. Run your figures through this tax calculator and it will calculate your Income Tax/ NI bill for the year, then deduct the tax you actually paid to check your tax rebate is correct.

[J]
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Old Apr 10th 2013, 5:02 pm
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Default Re: Tax brain

For those interested an update. Rang HMRC yesterday to query it and they thought there was a minor error which they'd check and get back to me (by mail). Letter arrived this morning (this isn't the HMRC we all know and love surely!) and all was correct, get the cheque in the bank :-) Hoorah!
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Old Apr 10th 2013, 5:28 pm
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Default Re: Tax brain

Send it back. The Treasury needs £8million to pay for next week's funeral.
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Old Apr 10th 2013, 5:33 pm
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Default Re: Tax brain

I'm not sending half of my refund back!!!
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Old Apr 11th 2013, 11:51 am
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Default Re: Tax brain

Originally Posted by mikewot View Post
For those interested an update. Rang HMRC yesterday to query it and they thought there was a minor error which they'd check and get back to me (by mail). Letter arrived this morning (this isn't the HMRC we all know and love surely!) and all was correct, get the cheque in the bank :-) Hoorah!
I am happy for you that they managed to get it right for a change!
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