Received 3k tax refund , now they want it back?

maxximus

Hi , in feb i received a cheque from the revenue for overpayment of tax of 3,300 ( i am a paye worker) . Last week i received a letter asking for the same amount back. It was an error on their behalf . I have already spent the money involved as i looked on it as a bonus and given the current climate i am not in any position to repay it . Where do i stand ??

Mr. Incognito

Sucks. Well legally you haven't a leg to stand on- you have to pay it back. Generally they can reduce your tax credits for future years until it is paid back so don't worry you won't have to go write a cheque right now.

Also, I'd advice reading the sticky above and see if you can up you tax credits you may be able to claim (you can go back 4 years) and see if you can squeeze a refund out and see if you can wipe it out that way.

Ticktactoe

maxximus wrote: »

Hi , in feb i received a cheque from the revenue for overpayment of tax of 3,300 ( i am a paye worker) . Last week i received a letter asking for the same amount back. It was an error on their behalf . I have already spent the money involved as i looked on it as a bonus and given the current climate i am not in any position to repay it . Where do i stand ??

Unfortunately this does happen and indeed it must be repaid. You will have the choice to pay it back in lump or starting from next year repay it over a two year period by reducing your tax credits.

The onus is always on the Paye employee to make sure that their tax affairs are in order and also that any refund due is in fact due.

testicle

Ticktactoe wrote: »

Unfortunately this does happen and indeed it must be repaid. You will have the choice to pay it back in lump or starting from next year repay it over a two year period by reducing your tax credits.

The onus is always on the Paye employee to make sure that their tax affairs are in order and also that any refund due is in fact due.

Given the amount, it will be spread out over a number of years, not just 2. I underpaid by a grand last year, my credits are reduced for the next 3 years.

allthedoyles

If you wish to expand on your circumstances,eg. single , married , have children , pay rent , etc , we may be able to help you reduce the amount you owe ,,,,,,,,,or care to let us what allowances the tax office gave you in your balancing statement .

Mr. Incognito

Allthedoyles.

Please read the charter re specific tax advice.