Tax refund payment
Posted: Sun Jan 10, 2021 11:04 am
Good morning I hope you are all doing well despite the current corona virus situation!
Im a wee bit confused about Tax refunds counting as windfalls or additional assets.
Lonf story short I had to leave my pre job in June last year due to ill health but since had an op and started a new job last Dec, however I checked my wage slip which showed I was on emergency tax and so I called up HMRC to rectify it however they informed me that my tax code for my prev job was incorrect ( news to me but HMRC checked while I was on the phone and said it was incorrect ) hence Im getting a tax refund in my wages.
Thus it is a tax refund for the current tax year (2020/2021) amounting to roughly £1,156
Now I have informed my IP about this but this is where my confusion starts, will the IP take the whole lot or 50%?
The only reason I ask is that my only means of transport ( 125 motorcycle ) is on its last legs and I was going to buy a bigger bike to go to & from work on with the tax refund, especially since I do unsociable hours shifts so public transport is not an option. I have found one which is 2nd hand & usuable, with deliverey its £850 ( its located 152 miles away from where I live )
Would it be worth me asking my IP if I could keep £850 of the tax return to faciliate getting the bike or do you think the IP will expect the whole lot regardless?
If I'm allowed to keep 50% of the rebate it would help me out a fair chunk but I want to be able to have an idea of what to expect and have contingincies for worst case scenario.
Im a wee bit confused about Tax refunds counting as windfalls or additional assets.
Lonf story short I had to leave my pre job in June last year due to ill health but since had an op and started a new job last Dec, however I checked my wage slip which showed I was on emergency tax and so I called up HMRC to rectify it however they informed me that my tax code for my prev job was incorrect ( news to me but HMRC checked while I was on the phone and said it was incorrect ) hence Im getting a tax refund in my wages.
Thus it is a tax refund for the current tax year (2020/2021) amounting to roughly £1,156
Now I have informed my IP about this but this is where my confusion starts, will the IP take the whole lot or 50%?
The only reason I ask is that my only means of transport ( 125 motorcycle ) is on its last legs and I was going to buy a bigger bike to go to & from work on with the tax refund, especially since I do unsociable hours shifts so public transport is not an option. I have found one which is 2nd hand & usuable, with deliverey its £850 ( its located 152 miles away from where I live )
Would it be worth me asking my IP if I could keep £850 of the tax return to faciliate getting the bike or do you think the IP will expect the whole lot regardless?
If I'm allowed to keep 50% of the rebate it would help me out a fair chunk but I want to be able to have an idea of what to expect and have contingincies for worst case scenario.