Inland Revenue letters asking for money back (IN the news)

[bargainhuntingbetty]

Is anyone else worried they will be hit by a HUGE tax bill before xmas????? I am worrying already and they have only just announced it.

Adjust accordingly.

We got a rebate a big 'un .....came yesterday a cheque through the post.

nickschic if you don't mind me asking were you told why you were due a rebate?

No I dont mind at all.....dh had overpaid tax in his new temp job at xmas.

Car allowances shouldn't cause too much of a problem - usually the money is just added to the money you earn each month and PAYE is deducted along with the rest of your salary.

Benefits in kind (having a company car (less and less common these days), health insurance etc.) are the things that might cause problems.

HMRC don't learn about these during the year - they are notified on your P11D when the tax year has already finished, and eventually your tax code is updated. If you have any benefit in kind on your P11D it is quite likely that you will have under or overpaid tax and it is worth filling in a self assessment form. If you do it on-line it is very straightforward.

You can also notify HMRC that you think your tax code should be changed.

this is quite a useful link if you want to check tax for previous years. You will need to add benefits on your P11D to your total salary on your P60 to get your total income for the year.

Just to add to what merrymouse said, if you do have a car allowance paid through salary and do business mileage you will probably in fact be due a refund. This is because you can claim the tax back on the difference between the HMRC allowance of 40p/mile and any fuel payment/mile your employer pays you. So if you do 1000 miles and you get paid 10p/mile, you can get tax relief on £300 - £120 if you are a higher rate taxpayer.

Nickschic had your dh pverpaid due to being on emergency tax? And was this Christmas 2009?