Client got a new notice of coding - collecting estimated underpaid tax by 5 April 2018. However he took a taxable pension lump sum this tax year on which there was a substantial over payment of tax.
HMRC could change the coding to remove the estimated underpayment but the instruction to get the overpaid tax back was still to submit a paper reclaim in year or process a self assessment return after the year end - both options allowing HMRC to keep the excess tax for months.
If they are being dynamic and aiming for the right tax by the year end why on earth can't they adjust the notice of coding to give extra allowances in year...??
Replies (3)
Please login or register to join the discussion.
Surely that would mean some of the overpayment would not be refunded until March?
Better to make in year refund claim if HMRC will make one.
With the last one I did the form and P45s were sent to HMRC on 18 July 2017 and the client got a refund on 9 August 2017.