Repayment by HMRC of overpaid PAYE and NI

Repayment by HMRC of overpaid PAYE and NI

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A limited company client of mine has applied to HMRC for a repayment of PAYE and NI contributions in 14/15 resulting from an incorrect tax coding which was only picked up in February in month 11 of the payroll year.

We spoke to HMRC in March and were told to write in at year end and the repayment should take about 2 weeks. We wrote to HMRC in April but heard nothing. I spoke to them today on behalf of my client and was told firstly they didn't get the letter and that the timescale for a repayment was 24th November. Has anyone else come across this? It seems like an absolute disgrace.

This year he is now only paying himself the basic 671.66 per month so we can't get it back via this years payroll.

I don't think submitting his personal tax return resolves the issue of getting the money back either because his P60 produces the correct amount of tax paid.

It is getting the refund of the company overpayments to hmrc which is the problem.

Can anyone help or is now the norm?

Replies (3)

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By KH
26th Jun 2015 13:07

the norm

My experience of clients overpaying PAYE/NICs (i.e. client read my email stating exactly how much to pay, and then paying it twice! .... etc, etc,) is that it can take years to get the refund .... and I've found nothing that I can do to speed up the situation. Fortunately we are only talking a couple of hundred pounds or so in the situation still ongoing. And it's no use adjusting this year's payments of PAYE/NICs to claw back this overdue refund, since then you set up a second round of argy-bargy. Sheer nightmare........

It's just as bad when HMRC receives a tax return with all the info correctly detailed, with HMRC's own SA302 showing the correct tax calculation, and then some tax-office twerp decides to look at it and decides it's wrong, issuing a notice for underpaid tax .... with completely erroneous figures plucked out of thin air, and bearing only a scant resemblance to the info submitted. Arggggg! Sound of teeth gnashing and hair being torn out....

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By sarahelizabethberry
26th Jun 2015 13:38

I was told the same thing

I applied for a refund in identical circumstances and wrote to claim in April. When I rang to follow up I was told that my letter was not even opened until 1 June and that their service guidelines for a response are November.

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By johngroganjga
26th Jun 2015 13:52

Why in these days of RTI does one need to write? HMRC are as well aware of the figures as we and our clients are. Why do they not just make repayments unprompted. Yes there will be some overpayments for less than obvious reasons that may need to be enquired into - but if so let them enquire away.

I have a case where there is an overpayment because the tax code of the only employee was increased part way through the year, generating a refund in the month of change. Guess who has funded the repayment out of their own pockets on behalf of HMRC, only to be told that HMRC are not interested in seeing them right any time soon, if ever.

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