Over paid Income Tax ?

Discussion in 'Legal and financial issues' started by Bree, Aug 17, 2019.

  1. Bree

    Bree Registered User

    Oct 16, 2013
    241
    MOH recently passed away, and I have been dealing with the official departments concerning his financial affairs.

    It occurred to me that as his income tax was paid by his occupational pension department before he received his pension each month, I wondered if his estate be due any refund of tax, as he was paying tax from April to July '19. Obviously the amount of tax paid was based on a full years pension, rather than four months of income.

    Does anyone know if there should be a tax refund please ?
     
  2. Wifenotcarer

    Wifenotcarer Registered User

    Mar 11, 2018
    233
    Central Scotland
    I am no expert, but I think you are correct and that, unless your husband had a large income from other sources than this pension he would probably be due a refund of all the tax paid this tax year. Probably best to contact whoever administers this pension. They should know what happens next.
     
  3. Bree

    Bree Registered User

    Oct 16, 2013
    241
    Wifenotcarer

    Thank you.
     
  4. McBeagle

    McBeagle Registered User

    Aug 11, 2019
    20
    If you used the "Tell us once" service when registering the death, HMRC will be notified and will check their records to see if a tax repayment is due. Otherwise, or if you want to double check, the best way is to write to them. If you let them know his NI number, Date of death and enclose one of the green death certificates and tell them your query, they'll get back to you - may take 3 or 4 weeks. The address is:

    PAYE and Self Assessment
    HM Revenue and Customs
    BX9 1AS
     
  5. Kevinl

    Kevinl Registered User

    Aug 24, 2013
    4,760
    Salford
    I don't know that I agree with you or wifenotcarer say.
    Income tax on occupational pensions is deducted at source the same as normal PAYE, so it's deducted on the amount you get each month not as you seem to imply a years tax is paid up front so they now owe you nine months tax back as that tax wouldn't be taken until that month's pension is paid out.
    I believe that if you pass away then the tax allowance ends then, you can't claim a rebate based on the fact only 4 months pensions have been paid but you want the whole 12 months tax allowance applied to those 4 months. If you were still alive you could, if you only had 4 months income in a 12 month period then the 4 months income would be all that's eligible for tax but that's just what I think.
    As has been said it is worth checking and the tell us once should alert the tax office but I would think they pro rata it so if you live half a year you get half a year's allowance, still do check.
    The issue with looking up pensions and tax is it takes you to so many places to do with releasing part of your pension pot and the tax implications for that and not what you want to know here.
    K
     
  6. McBeagle

    McBeagle Registered User

    Aug 11, 2019
    20
    Tax is deducted at source assuming you use your personal allowance over the course of the year. Therefore if you die part way through the tax year there is often a tax repayment due.
     
  7. McBeagle

    McBeagle Registered User

    Aug 11, 2019
    20
    And sorry, just to clarify, the personal allowance isn't pro-ratad so if you die part way through the tax year you still get the whole lot.
     
  8. Kevinl

    Kevinl Registered User

    Aug 24, 2013
    4,760
    Salford
    Good to know.
    K
     
  9. Bree

    Bree Registered User

    Oct 16, 2013
    241
    Thank you all, interesting discussion. I will post later what happens so we all know for sure.
     
  10. Bree

    Bree Registered User

    Oct 16, 2013
    241
    I have been in touch with MOH's tax office today, they have informed me that all the tax paid by him, will be re-paid, as his income over four months did not reach £11.500.00 his personal allowance.

    So now we know.
     

Share This Page

  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.
  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.