• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Tax Refund

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Tax Refund

    Afternoon all.

    The accountant is away for a few days so Im going to ask you guys...

    Since the start of the year my tax code has been K51 I received a notice last month that my tax code was being changed to 1399L.

    This has resulted in a tax refund showing on my payslip which arrived this morning, I still want to speak to the accountant about this as I am not sure that there should be a refund... but thats another matter which He will need to answer as he has access to my accounts. What Im hoping you guys will be able to answer is where the refund actually comes from?

    Because its on my pay slip I'd expect to draw that amount out with my salary, however that then means that the company is going to be down by the amount of the tax refund - should HMRC be putting those funds back into the company bank account? Is there a process that we need to go through to request this? Ive had literally no communication from HMRC on this either addressed to me personally or to the company...

    Any help appreciated.


    FFS : I've mistyped Refund in the post title and it wont let me change it!
    Last edited by Snarf; 25 October 2017, 15:26. Reason: Bloody Typo

    #2
    Isn't it a personal tax refund so nothing to do with your company?

    It's not because you've drawn less this year so your Payments on Account were too much and they now owe you it back? How much is it? I thought there were some rules if it was over a grand you had to request it or something?

    Could you log on to your HMRC Online account and have a look?

    https://www.gov.uk/claim-tax-refund/...ent-tax-return

    EDIT : IANAA and thick as mince.
    Last edited by northernladuk; 25 October 2017, 15:16.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      Originally posted by Snarf View Post
      Afternoon all.

      The accountant is away for a few days so Im going to ask you guys...

      Since the start of the year my tax code has been K51 I received a notice last month that my tax code was being changed to 1399L.

      This has resulted in a tax refund showing on my payslip which arrived this morning, I still want to speak to the accountant about this as I am not sure that there should be a refund... but thats another matter which He will need to answer as he has access to my accounts. What Im hoping you guys will be able to answer is where the refund actually comes from?

      Because its on my pay slip I'd expect to draw that amount out with my salary, however that then means that the company is going to be down by the amount of the tax refund - should HMRC be putting those funds back into the company bank account? Is there a process that we need to go through to request this? Ive had literally no communication from HMRC on this either addressed to me personally or to the company...

      Any help appreciated.
      Have you asked your accoutat?

      Comment


        #4
        Short answer - You will find your net salary has increased to take into account the refund amount. Your company will then apply for the refund with HMRC or alternatively offset against any future PAYE/NI liabilities due in the current tax year.

        Long answer - Ask your accountant.

        Comment


          #5
          Originally posted by northernladuk View Post
          Isn't it a personal tax refund so nothing to do with your company?

          It's not because you've drawn less this year so your Payments on Account were too much and they now owe you it back?

          EDIT : IANAA and thick as mince.
          Afternoon NLUK.

          Yeah, thats whats thrown me - its a personal tax so I'd normally just expect a cheque from HMRC made out to me...

          Ive just had a look on my personal tax account and its showing this months tax due as a negative figure (equal to the refund that is showing on my pay slip)

          I was expecting to receive a hefty tax bill not a refund!

          I'll just wait for the accountant to come back and check with him whats going on!

          Comment


            #6
            Originally posted by Michael at BI Accountancy View Post
            Short answer - You will find your net salary has increased to take into account the refund amount. Your company will then apply for the refund with HMRC or alternatively offset against any future PAYE/NI liabilities due in the current tax year.

            Long answer - Ask your accountant.
            Ahh, that makes sense, It was the apply for the refund bit that I was wondering about - should this be showing as my my company being in credit on my hmrc business tax account online?

            Comment


              #7
              Nice problem to have
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #8
                Originally posted by Snarf View Post
                Ahh, that makes sense, It was the apply for the refund bit that I was wondering about - should this be showing as my my company being in credit on my hmrc business tax account online?
                Yeah if you check the company PAYE account this should be showing as a credit.

                Also getting the refund can be a little tedious so if the amount is significant or you just simply want to receive it earlier than 2040, then get your accountant to apply for this. https://www.gov.uk/payroll-funding

                Comment


                  #9
                  Originally posted by northernladuk View Post
                  Nice problem to have
                  On the face of it.. but I know that there will be a bill coming at some point soon, so Im just putting it in a savings account to give back to them in a few months!

                  Comment


                    #10
                    Originally posted by Michael at BI Accountancy View Post
                    Yeah if you check the company PAYE account this should be showing as a credit.

                    Also getting the refund can be a little tedious so if the amount is significant or you just simply want to receive it earlier than 2040, then get your accountant to apply for this. https://www.gov.uk/payroll-funding
                    Its not showing online just yet, but Im sure it will in a few days.

                    The amount is significant enough that if we just leave it as myco being in credit it will be a few years before its dwindled away.. Ill get the accountant to apply for the refund.

                    Thanks for the help everyone!

                    Edit, Looking more at that link, it looks like being in credit to HMRC could be used against the Corporation tax bill? If thats the case then thats fine as Im expecting that bill shortly.
                    Last edited by Snarf; 25 October 2017, 16:09.

                    Comment

                    Working...
                    X