Fight the system and all that jazz

Or rather HM Revenue and Customs as they are now called.

I have to tell you something that happened to me, the Inland Revenue gave me nearly 500 pounds back. And I only just read their letter properly, saying that they owe me even more for the tax year 2005/2006 and that cheque is on its way.

Okay, so originally I wrote to them because I had left the UK and through my workings out, being on PAYE, have already paid way too much considering I didn't even work a whole year 05/06, having left the UK in August.

They don't make it easy for you to sort this out, they just let people carry on throwing money at them and might not even contact you at all, thus nicking your hard earned cash.

HOW TO DO IT
1. Check which tax office applies to you, which basically depends on where your employers tax goes through. (For example, mine was in Scotland but there are offices everywhere) (it'll be written on your Inland Revenue stuff somewhere)
2. Write them a very general letter saying that you want to query how much tax you have paid for ___ year(s).
Include as much information as possible. Any P45's, a couple of payslips from any various jobs you've had (and paid tax on), your P60 for that year.
3. TAKE COPIES OF EVERYTHING YOU SEND. (Send the originals)
4. Then wait a while. I got sent another form because obviously I don't live in the UK anymore.

The great thing is, I didn't even know I was owed money for 2004/2005, I 'thought' that was fine. I was only asking about the tax year we're in now. Here is a quick way to qork out roughly how much you are owed. Of course, if its a minus figure, best leave it!

* Check your P60s for the year 2004/2005 and see how much you have earnt and how much take you have paid on it.
Example 10,028 earnt 1347.30 tax paid
* Now deduct you personal allowance from the amount you have earnt. That is the amount that is income chargable.
10,028 MINUS 4745 EQUALS 5283

Income tax rates are roughly:
STARTING: 10% on the first 2020 (roughly)
BASIC RATE: 22% 2021 to 30,000 (roughly)

So it'd be 202.00 plus 717.86. (919.86 tax chargable.)

Deduct that from the amount from the figure that your P60 said that you had paid for tax.
1347.30 MINUS 919.86 =427.44

So thats quite a big overpayment for this example, and a nice bit of cash coming back to you. We have a tax allowance for a reason so we should use it eh.

This should benefit everyone, whether you have only just started your job, been employed by them for months, had a pay increase or keep changing jobs. Because they take it and no one questions doesn't mean they should keep it. Seriously, do it. It is your money and you deserve to keep it. And all it takes is some little effort and some photocopies of your original documents.

Thank you, this has been an Alex broadcast.