Refund of pay 2002 - 2003 and taxed at 40%

[danuk905]

This is a bit of a long story but I`ll keep it as brief as possible. I was on sick leave for 2 years from my job and my pay was stopped from being transferred from my job account to civilian account. It was still being paid into my job account and tax and NI was also being paid. On return from sick leave I was told that I wasn`t to get any of the money approx 26,000 after tax. The money was forfeited and after 2 years I have managed to prove that the money is legally mine. I have now been paid, the sum adding up to approx 33,000 before tax and have been taxed at 40% so have received 20,300.

I have been to the tax office and tried explaining that it`s my pay of 2002 and 2003 and that I should be taxed by that years rate but they only see it as this years earnings.

Could someone please give me some good advice cause I`m not sure what my next step should be.

Thanks for reading.

Dan

[Simon Sweetman]

Income from employment is taxed (roughly) when it is paid but on the face of it payment into your job account constituted payment at the time. You do need to take advice on this though because you are going to have to explain/argue with the tax office.

If you want to contact me, phone 01394 274857