Tax Overpaid

[March-Hare]

I received a nice annual bonus in April .... but have paid too much tax on it to the tune of £600 ...... I have written to the tax office. Will they give a refund? I realise they have made a mistake as such but surely they can't just drip feed what I am owed via my tax code?

[boxtops]

If you've paid too much in April (which is the first month of the tax year) then your payroll will (or should) correct it in May's payday, if you are on PAYE. HMRC don't usually give refunds partway through the year, IMO, not on current year's income.

[Flyhalf]

No, you"ll get it back gradually over the rest of the tax year
http://www.theanswerbank.co.uk/Business-and-Finance/Personal-Finance/Question1238913.html

[boxtops]

PS what makes you think it's the tax office's fault? It's your employer who applies the code that HMRC give them, have your employers used the wrong code?

[ubasses]

as you have been paid the bonus in the 1st month of the tax year the system has calculated your total monthly payment as 1/12th of annual salary. It will even out over the next few months and you will be paying less tax each month until it balances out.

Always used to happen to me when I was working.

[March-Hare]

Apologies meant to type I realise they have NOT made a mistake ....... and surely if I send confirmation I can get this back now ..... otherwise bonus from last year won't be fully paid to me until March 2014 ......? It's almost a thousand pounds which I need now and not over the next 10 months ......... help ! Shall I write to them?

[craft1948]

This happened to a friend of mine
http://www.theanswerbank.co.uk/Business-and-Finance/Personal-Finance/Question1238913.html
The consensus is that that her tax will be adjusted throughout the year so it doesn't look like you will get a refund.

[Buenchico]

It's many, many years since I worked in a wages office but I remember that whenever a PAYE error was detected, resulting in excess tax having been deducted, the full amount was automatically included in the employee's next pay packet.

[Flyhalf]

You'd be wasting your time.
PAYE works on the principle of allowing 1/12 of all allowances and lower rates for each month on a cumulative basis, with the effect in your case that the difference between the full 40% you seem to have paid and the marginal rate applicable for the whole year will trickle back to you over the long term.

[ubasses]

Just been to check my pay slips for my final year at work. Bonus in April with big tax deduction. Bulk of tax back in May and a little more in June, all back to normal in July. The tax office probably will not even looked at your letter by then.

[factor-fiction]

The tax office is not interested as to which period the payment relates- they can only go off when the payment was made, and that was April, so tax would have been taken based on the only info they had which was your earnings for April. As others have said it will sort itself out , starting with an an adjustment in May's tax

[March-Hare]

Couldn't be happier - after ack letter to agree my figures, I have since had a large refund in May pay, a cheque in post for another amount - and they now only owe £81 which they have said will be in June PAYE!