www.iva.co.uk

Just thought id let u all know that theres no sign of this £60 tax refund in my hubbies weekly wage!

Same with my OH. But im not reallysure what its all about anyway.

It should be in nextweeks wage, the changes of personal allowance come into affect on the first payday after the 7th September.

Hope this helps
carol
x

I expect ours at the end of this month.

Hi

I heard that they will just be changing the tax allowance to 603L rather than 543L instead of giving £60 in your wages, thats what I heard not sure if its true or not, im about to start a new job so hope that I either get the £60 and / or the 603L coding.

Thanks Carol, fingers x'd!

I was told that as well Stu - I think we'll just have to keep our fingers crossed!

The way I understand it is:

In theory they should raise your tax code and give you a £60.00 ish refund (this may be shown as a refund or you may notice that they just take £60.00 ish less tax off you than you normally pay)on your first payday after 7th September. Your tax code should go up so that you then benefit from the further £10.00 per month until the start of the next tax year.

The worrying thing about this is that the HMRC website gives notice that this is an employer responsibility to implement for those on PAYE but it is not clear whether specific directions have been sent out to employers to do this or are they just relying on it being general knowledge ?

As a little test I checked with several businesses today whilst out shopping and several friends as well - the result- actually not a lot of people were aware that they were entitled to a refund and not a lot of employers knew about it either.

I work for a major organisation and my pay office told me that although they knew about it and would be implementing it they had not had any specific directions from HRMC about it.

The moral : It may be worth checking with your pay office or employer rather than just assuming you they will pay it to you ,directing them to the HRMC website if necessary.

If I am wrong, anyone please feel free to correct me.

Yup I think its a 60 refund or less deduction(same difference) and a change in code.

Happy days.

As an after thought which will be important for some people no doubt : this refund or payment of less tax however it's done has to be funded up front by the employer.

In the case of 'small employers' who:

(a)genuinely cannot 'afford' to fund this up front or
(b)In the case of those who do not reach the £60.00 tax level on a particular payday,

It appears the employer has some scope to :

(a) Wait until their next tax payment date to HRMC before giving the refund (deducting the amount due at that time).
(b) Ask the individual to claim the money directly from HRMC.

Obviously this is a bit of a grey area.

Is this only for people on the basic rate? We get taxed at the higher rate.

Hi

The tax codes change in September so anyone with an L in their code will be able to earn a bit more before being taxed.[:)]

greedfighter wrote:

As an after thought which will be important for some people no doubt : this refund or payment of less tax however it's done has to be funded up front by the employer.

In the case of 'small employers' who:

(a)genuinely cannot 'afford' to fund this up front or
(b)In the case of those who do not reach the £60.00 tax level on a particular payday,

It appears the employer has some scope to :

(a) Wait until their next tax payment date to HRMC before giving the refund (deducting the amount due at that time).
(b) Ask the individual to claim the money directly from HRMC.

Obviously this is a bit of a grey area.

Unless I am missing something (It's a good while since I used to run a payroll department) ...

This change in personal allowances should not place any additional financial burden on the employer. Yes they will have to pay a refund of tax to the employee, but there will be a correponding deduction in the amount the employer has to pay over in Tax at the end of the month.

I may be over simplifying this but if paying weekly, the employer should also have provided for the Tax and National Insurance deducted and to be paid over at the end of the month to H M Revenue & Customs.

Ooh!!![:D] Didn't know about this, nice to have a bit of Good News.
My Tax Code is 543L so hope I get something[:)]

Cybus is right of course - although in my wifes case for example - some employers pay their tax to HMRC quarterly. If this is the case and they cannot afford to pay any refund upfront they should either apply for 'advanced funding' from HMRC in order to cover it or it appears there is scope for them to wait until their next HMRC payment date.

Assuming of course they have read the HMRC website as to how it should all work.

I merely draw the point that some employers (not as Im sure they would) may try to use this as an excuse to hang on to the money !.