Large PAYE tax rebate after payroll error, will HMRC reclaim it?

[Choochoobadboy]

last month I got a big tax rebate following issues with a new payroll system. The payroll told he tax man I was going to earn a lot more than I should but it also inflated the tax they thought I owed. The amounts were corrected on earnings to date in Jan, but they only corrected the tax id paid the following month. The tax they said I’d paid was £45000 when it was really £30000. So when it was corrected they added on £14000 to my pay slip as tax back. Tax code also changed where I had no personal allowance to S801T. Is his tax back correct? I’ve phoned them up 3 times and they insist it’s right but the figures don’t add up! Do you think they’ll ask for it back? I have it sitting there but I have debts it would come in really handy for.

Of course they will

Why have 3 people insisted it’s correct? I even sent a letter with my calculations? Can 3 people be so wrong in the tax office?

If you post the figures maybe one of us could give an opinion? I used to do PAYE for a couple of businesses so I understand the basics.

Go to Money Saving Expert site and find their income tax calculator. Take your total taxable gross income (for the year) figure off your March payslip and let the MSE site tell you how much tax you should have paid and then compare it with the tax paid for the year as shown on your payslip. If MSE calculates £45k and your March payslip says you’ve paid £30k then HMRC will come looking for it.

They did with me. I knew they’d made a mistake, I told them by phone and in writing.

They denied it. 3 years later, they claimed it back. 🙄

Yeah I had a massive mistake when I started my new job as I KNEW it was incorrect and I called 3 times and was assured that the were taking it back correctly via my pay only to receive a massive tax bill!

I called up (again) and maybe cried 😂 and was told they’d made a mistake and I was getting all the tax back and I’d have to pay it all in lump sum so a bit different to yours but after fuming for a while I sent in complaint via their form online as I couldn’t believe I’d been told incorrect information and received a small amount of compensation!

God 3 years….. at least mine was within the same tax year…. And the lovely bloke I cried to assured me once I’d paid it all back 🙄 I didn’t owe rhem
anything else 🤞

Never underestimate how incompetent they are. When I was on mat leave (hadn’t changed jobs or anything) they told me I’d underpaid by £200. I argued with them but they insisted they were right. About 3 years later I got it refunded

Yeah it’s frustrating! Even after sending them a letter also with the figures they still said it was
correCt. They did owe me something but now I’m not sure what to do with it! They owe me something from self assessment and that is taking ages! Said it would be Feb 2027 I’d hear back!