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Where Taxpayers and Advisers Meet

In-year repayment P50

tg99
Posts:18
Joined:Tue Jul 29, 2014 2:27 pm
In-year repayment P50

Postby tg99 » Wed Sep 02, 2015 5:28 pm

Hi,

I left my last job in 14/15 tax year and received a final arrears payment in current tax year (in May). This final payment was taxed under PAYE but I overpaid tax (as higher rate was applied to whole payment). As i do not expect to work for remainder of 15/16 tax year then I was told by HMRC that I could claim an in-year repayment by filling in form P50 which I duly did. However, when phoning them to get an update on where they are with processing my form and the repayment, they said that the have written back to me to say that as I am in Self-Assessment then I have to claim this back on my 15/16 self-assessment form and thus wait till after April next year before I can claim this.

Can anyone advise if this is correct or has been through similar process as I have now been told different things by different people at HMRC (the person who said I could claim now using P50 knew I was in self assessment)?

Thanks

LozaACCS
Posts:1504
Joined:Wed Aug 06, 2008 3:55 pm

Re: In-year repayment P50

Postby LozaACCS » Wed Sep 02, 2015 8:18 pm

I can understand the reluctance of HMRC to issue a repayment only to find amounts due at the end of the year, PAYE is anything but exact.
The primary legislation (ITEPA 2003) would delegate the issue to Statutory Instruments, in this case SI 2003/2682 reg 64.
I find this regulation unclear, it asks for a certification of unemployment, what form does this take and who provides it, no mention is made of self employment.
The PAYE manuals however provide more clarity, and sanction a repayment providing no P11D is required.
My advice would be to write to HMRC specifically quoting the PAYE manuals (ref 62040), good luck

tg99
Posts:18
Joined:Tue Jul 29, 2014 2:27 pm

Re: In-year repayment P50

Postby tg99 » Wed Sep 02, 2015 9:20 pm

thanks - I am expecting a call back from HMRC in the first instance as I challenged the person's view who told me on phone that no repayment can be claimed until I complete 15/16 self assessment form and she said would speak to a manager for more guidance .... so will quote your manual reference above and see if that helps

SteLacca
Posts:448
Joined:Fri Aug 07, 2015 2:17 pm

Re: In-year repayment P50

Postby SteLacca » Thu Sep 03, 2015 3:52 pm

Are you claiming any taxable benefits? This would also exclude a P50 claim.

tg99
Posts:18
Joined:Tue Jul 29, 2014 2:27 pm

Re: In-year repayment P50

Postby tg99 » Thu Sep 03, 2015 4:17 pm

No not claiming any taxable benefits.

And had a call back earlier from HMRC. They have said they incorrectly advised me to fill out form P50 since the payment I received in May was a lump sum payment. So they said they would get a technician to call me to advise on whether I am able to claim and how.

tg99
Posts:18
Joined:Tue Jul 29, 2014 2:27 pm

Re: In-year repayment P50

Postby tg99 » Sun Sep 20, 2015 5:33 pm

So....I had a call back from a 'technical' officer at HMRC who stated that I could indeed claim the in-year repayment by filling out P50 even though I am in SA and that they would therefore send a message to the relevant office confirming this.

After a couple of weeks as I had not heard anything I gave them a call and turns out they had just written to me and apparently the relevant office disagreed with the technical officer and insisted that no in-year repayment can be claimed until I do my SA form for 15-16 tax year. I have now received the letter and it references PAYE94025 Cessation repayments: SA cases. Having reviewed this part of the manual it says

"Cessation repayments: SA cases
Before you make any repayment, you should determine the customer’s tax position as at the date their employment was terminated. If, at that date, they satisfied the SA criteria of

- The total taxable income before allowances are set off exceeds £100,000

Reactivate or set up an SA record in accordance with SPD WI117. Advise the customer, using OCA177, that no in-year repayment can be made because they are now an SA taxpayer."

So reading this they would seem to be correct as my income was over £100k both last tax year and this current one (as the sum I want to claim repayment on was in excess of £100k) and I am in SA.

Not sure if anyone has any views/experience of this part of the manual they are quoting? At the time of the phone call I had not received the letter so I did say I wanted a technical officer to call me back to go through this since they are telling me different things in whether I can claim now or not. Hence hopefully hear from them next week.

Thanks.


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