tax refund – can they ask for it back?
so for the second consecutive year, the tax man has given me a cheque for a chunky amount – equivalent to about 25% of my total income tax bill for that year (PAYE, not self assessment)…Posted 6 years ago
I’ve spent the last year worrying that he was going to ask me for the last one back, so will be doubly worried now that they’re going to ask for this one back.
how do I stand if they ask for it back and it’s been spent/ invested so I don’t have it to give back?BenHouldsworthMember
just what wwaswas says.
You should have received documentation explaining how the amount was calculated.Posted 6 years ago
“calculation of this amount has been sent separately”
this is what they said last year, yet I didn’t receive it.
I don’t want to ring them up and ask them to explain it, I just want to be sure that I won’t have to pay it back at some point, but I also don’t want to be the one to point out a mistake (I don’t know if it is even a mistake).Posted 6 years agopdwMember
If the refund was incorrect then I’m pretty sure that they can ask for it back. I think there may be a six year limit on tax enquiries.
You need to work out if you’ve paid the right amount of tax over the rest of the year. There are websites that will tell you how much you should pay given your salary, e.g. http://www.incometaxcalculator.org.uk and you can compare the number at the bottom of that with your take home pay. If your actual tax home is significantly lower that’d explain why you’re getting refunds.
If you are on the wrong tax code, you could be paying too much at the end of each month, which is why you’re getting the refunds, although normally they would issue a new tax code to fix it.Posted 6 years agomaccruiskeenSubscriber
I’m not sure I’d have the same sort of self control
The maccruiskeen household has had nearly £5k in rebates this month, we’re both self employed so its payments on account being returned. Its weird though, you feel like you stole it – then you remember it was your money in the first place. Temptation is to splurge it, but then you remember that this years payments on account are comparatively low so we’ll both get walloped next january.Posted 6 years ago
The topic ‘tax refund – can they ask for it back?’ is closed to new replies.