Tax Rebate

[Chickadee]

First off, sorry if this is the wrong section.

To cut a very long story short - this has been going on for over 2 months!!

My hubby works for B & Q and since April has been on the wrong tax code.

B & Q have finally said they have received notification of the change of code but they aren't going to give him a rebate because the Tax Office haven't told them to.

I have no idea how payroll works, but I though receiving a new tax code with the information - your new tax code from April 2008 until April 2009 is... - was enough to tell them to rebate the money.

Does anyone have any payroll or tax knowledge who can assist please?

Thanks

[LCDMAN]

The new tax code will tell their PAYE system to amend the tax it takes from him, but as tax is calculated over a whole tax year, he will not see a big sum rebate for the "overpayment" so far this current tax year.

The overpayment so far this year will not be taken into account in this new code, but should be allowed for in next years (once they know just how much he has/hasn't paid in tax for the WHOLE tax year). A rebate is only payable if they can't adjust your code enough for you to pay less tax to cover the overpayment for the rest of the year. After the end of the current tax year you can apply directly to the tax office for a rebate if you feel you paid too much this year.

Rebates, generally, can only be made once a tax year is complete (assuming there is still an overpayment), not whilst it is running (so based on a previous tax year,not the current one). It could be that he earns more, or less during the balance of the tax year, so the final calculations can only be done knowing what he HAS earned, not what he MIGHT earn. If he does pay too much tax during this whole year (even with the adjusted tax code) then his code for next year should redress the balance.

I'm run a small company with just a few employees and this tax stuff can really do your head in sometimes!!

[Retread]

Having spent a year resolving issues with the HMRC I would advise a few words of caution; When you call them, keep your id anonymous until necessary. They will happily answer general questions without knowing who you are. If you give them your NI number (they ask for it) and you then ask a question, you will probably find your tax code will change again (based purely on what they think it should be after your conversation) and you will get a new code in the post. ( . . which prompts you ring up again and they ask for your NI and so it goes on!)

Otherwise LCDMan's answer is spot on. I doubt (but it's just my view) that they will give you a rebate for a small amount, they will just adjust your code for next year so you can earn slightly more before paying tax, thereby getting the overpayment back. This will only happen in April.