Tax Rebate

[robert551069]

My wife has just had a tax rebate of £638 for tax overpaid in 2005.
Why did they take so long?

[factor-fiction]

I don't know-maybe they have had an audit or discovered a general problem. I think it 's always a good idea to keep a check on our tax at the end of each tax year

[robert551069]

Thank you for youanswer, factor30

[Hymie]

It might be that you wife has not earned enough money (to get a tax rebate) through an increase in her tax code.

Normally any over/under payments are corrected through a change in your tax code – but if someone is not eligible to pay any tax, increasing their tax code has no effect. After a few years (and realising that the money is still owing), this will be addressed through direct payment.

[robert551069]

Thank you for your answer, Hymie.

[ummmm]

Balancing their books.

[NoMercy]

I've just had a £200 rebate in my first pay pack.

[gingejbee]

HMRC has only recently had a computer system that works!

[1eyedjack]

gingejbee is spot on. For decades they have had separate computer systems that did not "talk" to each other. Now replaced by one that is capable of reconciling years back.

[boxtops]

Tax corrections can go back seven years, I believe - they found your wife's error just in time!