Tax refund - £2600? Don't think its correct

[psychocandy]

Update: Accountant recieved calculations letter and it is, as someone said, a PAYE refund that I've already had. Accountant phoned HMRC and they said it was an error and to destroy the cheque. So looks like I cant keep quiet now that accountant has grassed me up! :-)

Pity. I guess they would have sussed on eventually. There goes my beer money for the weekend !!!!

[psychocandy]

Because the left arm doesn't know what the right arm is doing. More specifically, the PAYE department doesn't seem to have been informed that you were doing a personal tax return.

You can of course bank it if you like, but I'd anticipate they'll figure out their mistake eventually (if you don't tell them now) and will want the money back. The fact it's their mistake (unfortunately) doesn't mean they're not entitled to demand it back in the future.

Its nuts though. I've done a tax return for the past 5-6 years for various reasons.

Pretty much know they'll want it back eventually. Might just earn some interest for a while!

[Maslins]

All well and good but SA has dealt with all this and refund given? Still don't understand how on earth they've sent me a second refund?

Because the left arm doesn't know what the right arm is doing. More specifically, the PAYE department doesn't seem to have been informed that you were doing a personal tax return.

You can of course bank it if you like, but I'd anticipate they'll figure out their mistake eventually (if you don't tell them now) and will want the money back. The fact it's their mistake (unfortunately) doesn't mean they're not entitled to demand it back in the future.

[psychocandy]

A couple of years ago I got a cheque for £13,000 from HMRC which I wasn't entitled to. Called them up and they said it was "system error" and they would have picked it up eventually. The guy didn't sound too convincing, though and I almost wished I'd kept it. But that would be wrong.

Weird to just send cheques out like that though.....

Tempted to keep it and not say anything but I think I'd rather know if it was mine or not. Could be hassle having to pay it back in future etc.

[psychocandy]

Because I don't think the new refund is directly related to your personal tax return.

The letters with the refunds should be the biggest clue.

Probably only one will have your UTR, will be issued be a "Self assessment" department. Also, as it'll be based on your calculations (your SA return) there probably won't be any calculations on the letter.

The other will have your NI number and employer's PAYE reference and will show a much more detailed calculation to explain how they got to the rebate. Most of this calculation will be similar to what went on your personal tax return, though will of course not have any little bits of non PAYE related stuff HMRC don't know about (eg dividends/bank interest/rental income etc).

I think your right. This letter has NI on it but no UTR. Looks like calculations letter is on its way.

I knew I'd overpaid PAYE which is why I did my return asap. I understand how the PAYE figure may be slightly different because, like you said, return takes into account other income of which there was a little.

All well and good but SA has dealt with all this and refund given? Still don't understand how on earth they've sent me a second refund?

[Alan @ BroomeAffinity]

A couple of years ago I got a cheque for £13,000 from HMRC which I wasn't entitled to. Called them up and they said it was "system error" and they would have picked it up eventually. The guy didn't sound too convincing, though and I almost wished I'd kept it. But that would be wrong.

[Maslins]

Logged on to my government gateway SA.

Spookily, they've got my refund last summer on there but no mention of this recent refund....

Accountant currently investigating...

Because I don't think the new refund is directly related to your personal tax return.

The letters with the refunds should be the biggest clue.

Probably only one will have your UTR, will be issued be a "Self assessment" department. Also, as it'll be based on your calculations (your SA return) there probably won't be any calculations on the letter.

The other will have your NI number and employer's PAYE reference and will show a much more detailed calculation to explain how they got to the rebate. Most of this calculation will be similar to what went on your personal tax return, though will of course not have any little bits of non PAYE related stuff HMRC don't know about (eg dividends/bank interest/rental income etc).

[psychocandy]

Logged on to my government gateway SA.

Spookily, they've got my refund last summer on there but no mention of this recent refund....

Accountant currently investigating...

[psychocandy]

We've seen this a couple of times with people who had "proper" salaries (ie not £624/month) but also did personal tax returns.

We submit the tax return, they get the rebate, fine. Then separate to that, HMRC look at the PAYE side of things, don't match it up with the personal tax return, and see you've overpaid PAYE, which they refund.

Sadly it was duplicates in our cases, sounds like it's probably the same thing for you.

Yeh, the amount refunded as per tax return is similar (within £100) to what they've now decided to repay me. Makes me wonder, like you said, whether they've looked at PAYE separately....

Bit scary to find that HMRC are so clueless though....

[psychocandy]

Yeh. If I'm owed tax money though I like to at least understand why.

Otherwise, at the back of my mind, there's always the though that they're going to want it back one day.

I'm hoping though, like I said, that HMRC don't send out cheques for £2.5K without checking their correct first?

[northernladuk]

Scragmeister started a post about being unexpectedly in credit which has also happened to me twice. I submitted the values twice in a year as directed by the accountant and then for some reason be in credit later by a similar amount. Never really got to the bottom of it in either case. Just got the accountants to double check everything and they said yes it's fine, I am in credit and I have paid my dues so take it... so I did. No come back so far and have done two returns since the first credit. It wasn't too many years after being permie and I did have a god awful accountant for a year or after permie as well.

[Maslins]

We've seen this a couple of times with people who had "proper" salaries (ie not £624/month) but also did personal tax returns.

We submit the tax return, they get the rebate, fine. Then separate to that, HMRC look at the PAYE side of things, don't match it up with the personal tax return, and see you've overpaid PAYE, which they refund.

Sadly it was duplicates in our cases, sounds like it's probably the same thing for you.

[psychocandy]

Was permie at start of 2011 and ended up paying a shedload of tax somehow. So, come April 2012 I was keen to get my tax return done asap so I could get the money back.

Accountant did so and I got a cheque for £2700 from HMRC. As expected.

Weird thing is I've now got a cheque for £2600 from them for the same tax year. I don't understand - my return for 2011/12 was submitted in July 2012 and I thought this one was all done and dusted.

Going to speak to accountant but I've got a funny feeling they've screwed up somewhere. Got right NI number but its a different tax office which makes me think.

Tempted to blow it all on booze watching the rugby at the weekend but I guess they might ask for it back at some point.... A

Pretty poor sending out cheques for £2500 accidentally if it is incorrect...

Anyone else ever get this happen to them?