In addition to my question about the Tax Return for my mother in law, my sister in law has told me that she has just found out that she has overpaid tax for my mother in law over the last few years. She was in receipt of some benefits, one of which my sister in law did not realise already had tax deducted at source so she put down the amount to have tax calculated on it. I understand the true annual income was approx £17,000 and the amount she put down was £21-£22,000.
Now my mother in law has passed, will it be difficult to try to reclaim tax paid and how should she go about doing this?
I will find out which benefit it is, perhaps I misunderstood and it is income of some sort such as pension, I will find out.
How would we go about asking for the tax suffered to be taken into account? Would we need to recalculate everything or would HMRC calculate this for us and what is the procedure to go about asking for the last 3 years returns to be reviewed? Are there specific forms and documents that need to be filled in?
Sorry for the delay, I am waiting for my sister in law to return from holiday to find out exactly what income/benefit she thinks she has overpaid on and will let you know as soon as I speak to her.
Thanks for your patience and as always, your invaluable help and advice.
I hope you are well and enjoying your weekend. If you are busy today, there is no need to reply today as I appreciate it is the weekend and you probably want some family time and have things to do so tomorrow is fine!
My sister-in-law is now back and has confirmed that she included as part of the total income, Attendance Allowance as part of the State Pension received. She said she thinks she shouldn't have included this as Attendance Allowance is tax free and this increased the income stated by quite a lot (I think the Attendance Allowance was paid at the higher rate). She said this was included in the 2012/13 and 2013/14 returns.
If she is able to reclaim overpaid tax on this, please can you kindly advise how the letter should be written (how it should be phrased) as she is quite anxious about getting this right and doesn't know how it should be written.
Please let me know if you need any further information.
Thanks for your prompt reply, I didn't expect you to look at this until tomorrow! I am having a lovely weekend too thanks, ***** ***** goes so quick!
That's great, thanks for confirming and advising on the wording, I think writing letters to the HMRC can seem a daunting task as although it is just a letter, we are worried about saying the wrong thing and causing unnecessary complications! I will pass this on to her.
She submitted paper returns and will be submitting paper returns for 14/15 and 15/16. Does that mean she can only amend the returns via this letter if she didn't complete online returns anyway? Would she also have to tick the box in the 14/15 return that she thinks she has paid too much tax and put details in that too?
Referring to your advice about sending in the 15/16 Return at the same time to deal with everything in one go, would she need to request HMRC to send the paper form for 15/16 as this has not been sent out yet?
Finally, will the overpaid tax be sent back as a cheque payment to my mother-in-law? I'm not sure on the process of probate but wondered if there would be issues paying the cheque into the account if it is frozen. My sister in law is the executor and is in the process of applying for probate. I am aware however that this may not be your area of expertise so may need further investigating.
Thanks again for all your help.
Thanks very much for your invaluable advice and help over this issue. I'm sure this covers everything but if anything else arises out of this, I will raise as a separate question to you to ensure your time is compensated properly.
Have a lovely evening and thanks again.