# Overpaid tax



## Darlofan (Nov 24, 2010)

Wife was made redundant and had final pay today. She's got12 weeks pay in lieu of notice which is taxable. So 12weeks wages she has paid tax in the higher bracket as the system thinks she's suddenly had a huge pay rise, not realising that's for 3mths not 1.
Will the overpayment be put right next month when she starts new job, at end of tax year or can she ring and claim it back now?


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## Cookies (Dec 10, 2008)

That'll be sorted out at year-end. Something similar happened to my wife 3 years back. She had underpaid tax (apparently) due to a job change, and they issued a demand for £700. We duly paid it in the February of that year, despite me explaining the situation. In April, we received a cheque for an overpayment of tax...... For....... £705.



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## grunty-motor (Aug 11, 2016)

i used the online chat function to sort out my tax problem - worked very well and was pretty quick (unlike BT's version, for example). maybe worth a try.


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## Juke_Fan (Jul 12, 2014)

If your wife's P45 in not a month 1 code (the code ends in an X if month 1) then when she hands this in to her new employer they will take previous pay/tax details into account and it will be adjusted through reduced tax over the coming months.

If the P45 code is month 1 then you will need to wait until the end of the year when HMRC have all your wife's details and then they will do a refund.


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## Andyg_TSi (Sep 6, 2013)

Juke_Fan said:


> If your wife's P45 in not a month 1 code (the code ends in an X if month 1) then when she hands this in to her new employer they will take previous pay/tax details into account and it will be adjusted through reduced tax over the coming months.
> 
> If the P45 code is month 1 then you will need to wait until the end of the year when HMRC have all your wife's details and then they will do a refund.


If the new employer puts the employee on a week1/month1 indicator, then, if the cumulative code is resored anytime between now & February 2022, then any refund due will be paid in the following months pay.

The employee will only need to claim a refund independently of the payroll run is if the code cant be restored from week1/month 1 to cumulative before there is time left for it to apply &#55357;&#56397;


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## Juke_Fan (Jul 12, 2014)

Agreed, the quickest way to get this to happen would be to let HMRC know and they will issue a revised notice of coding to the new employer. Having been a tax man, it is always better to give HMRC a prod as opposed to waiting for them to spot themselves. Easier to do now with the chat and online tax accounts, saves waiting hours on the phone!


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## DLGWRX02 (Apr 6, 2010)

Same thing happened to me last year. I was made redundant on March 28th got final pay packet 21st April in the new tax year, over £47,000 in redundancy and paid near £8,000 in taxes. Didn’t get a job until August thanks to covid, I then didn’t pay any tax until, December and in April this year I received a nice cheque for over £2k in over paid tax year for year 21-22 didn’t know I had until I received an email from HMRC telling me I needed to log in to my tax account as I had a message. Basically I had 16 weeks to claim it or they would pay it by not taking tax from my wages until it had levelled out, so I claimed it.


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## Darlofan (Nov 24, 2010)

DLGWRX02 said:


> Same thing happened to me last year. I was made redundant on March 28th got final pay packet 21st April in the new tax year, over £47,000 in redundancy and paid near £8,000 in taxes. Didn't get a job until August thanks to covid, I then didn't pay any tax until, December and in April this year I received a nice cheque for over £2k in over paid tax year for year 21-22 didn't know I had until I received an email from HMRC telling me I needed to log in to my tax account as I had a message. Basically I had 16 weeks to claim it or they would pay it by not taking tax from my wages until it had levelled out, so I claimed it.


Blimey, wish she'd got that much redundancy:lol:
Secondly, I'd have thought HMRC would write rather than email due to amount of scams. That could be one I'd have deleted. :wall:


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## Taxboy (Aug 23, 2006)

Darlofan said:


> Blimey, wish she'd got that much redundancy
> 
> Secondly, I'd have thought HMRC would write rather than email due to amount of scams. That could be one I'd have deleted. :wall:


They do email but never have links. As above you will be advised to log into your personal tax account

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## Darlofan (Nov 24, 2010)

Andyg_TSi said:


> If the new employer puts the employee on a week1/month1 indicator, then, if the cumulative code is resored anytime between now & February 2022, then any refund due will be paid in the following months pay.
> 
> The employee will only need to claim a refund independently of the payroll run is if the code cant be restored from week1/month 1 to cumulative before there is time left for it to apply ��


Hi Andy, 
Just checked p45. Week 1 month 1 box is not ticked. 
Under it there is a box that says last entry on payroll record/deductions and then in a box month number 6.


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## RaceGlazer (Jan 10, 2007)

If you think that you have paid too much tax to HMRC you can usually claim back any overpaid tax. The exact method for making a claim depends on a number of factors including whether or not you complete a Self-Assessment return and the length of time that has passed since the tax was overpaid.

Claims can usually be backdated for up to four years after the end of the relevant tax year. This means that claims can still be made for tax refunds dating back as far as the 2017-18 tax year (which ended on 5 April 2018). The deadline for making claims for the 2017-18 tax year is 5 April 2022.

According to HMRC you may be able to claim a refund if you have paid too much tax on:

pay from your current or previous job
pension payments
income from a life or pension annuity
a redundancy payment
a Self-Assessment tax return
interest from savings or PPI
foreign income
UK income if you live abroad
fuel costs or work clothing for your job.
HMRC is currently undertaking the annual reconciliation of PAYE for the tax year 2020-21. HMRC use salary and pension information to calculate if the correct amount of tax has been paid. Where the incorrect amount of tax has been paid, HMRC use the P800 form to inform taxpayers. HMRC expects to send all P800 forms by the end of November 2021. The P800 will notify you if you have overpaid or underpaid tax


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