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do I lose money if I cash this Cheque

DoublemeDoubleme Member Posts: 2,183
So HMRC due to deliberate act or incompetence I suspect both massively over taxed me and I have been chasing this money for over 8 months. today I got a cheque with a brief statement acknowledging the over tax just its for a lesser amount then what I am actually owed. if I cash the cheque does this mean I accept this amount as what is owed and give up my claim for what I am actually entitled to or does it just mean I accept part payment and I am still chasing the rest?
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Comments

  • mumsiemumsie Member Posts: 8,104
    No, no, yes.
  • goldongoldon Member Posts: 9,141
    If your Letter said, " In full and Final Payment " then yes. If not ask Essexphil......?
  • Bean81Bean81 Member Posts: 608
    I would be surprised if their calculation was wrong. They normally shows their workings, which you are unlikely to disprove. Note: I'm assuming they wrote you a cheque after you wrote to them with copies of all of your relevant documents.

  • goldongoldon Member Posts: 9,141
    edited December 20
    Take the Money spend it & be happy . It's Christmas...they may ask for it back if you rattle the snake. !

    If you are expecting a Doubleme from them ........ hic!

    The Cheque could Bounce ..... more likely.?
  • DoublemeDoubleme Member Posts: 2,183
    So basically £1000 of incorrect earnings was been recorded on my national insurance number. so I was taxed based on an extra £1000 of income each month.

    the tax I have overpaid assuming my income remains as expected until April (tax year ends in April) is just shy of £800 they have sent me a check for just under £300.

    the amount of constant mistakes if we call it that as I am suspicious now no I have no confidence in their calculations what so ever. I would genuinely and I mean this literally no hyperbolic what so ever trust a 12 year old picked at random from the population to calculate my taxes and amount due back more then I would HMRC.

    I have an off the cuff estimate to what they have done wrong but thats speculating until i confirm with them.
  • DoublemeDoubleme Member Posts: 2,183
    ok this is pretty clear now the letter said based on their calculations to follow and got post literally just now apparently i underpaid tax by £2 thats right not £2000 not £20000 not £200000000 not even £20 nope £2 in 2021.

    I dont know if that is correct or not I mean if so its there fault not mine anyway. and they send me demand the £2 ok fine there just trolling me and bullying me now i think this is delibrate troll and bullying which i think is discrimination seriously thinking of suing them now.
  • DoublemeDoubleme Member Posts: 2,183
    my point being when they screw me so hard due to just complete ineptitude/deliberate and then they chase the tinu £2 its the sort of thing middle school bullies would do as a troll.

    maybe there department is just a load of 12 year olds would explain a number of things.

    maybe they find 27p in over tax from another year to.
  • Bean81Bean81 Member Posts: 608
    Did you send them copies of all your payslips and P45s where relevant?

    If you are just earning taxable income from an employer, it's highly unlikely they will be wrong here.

    They also have access to a lot of pay slips.
  • EssexphilEssexphil Member Posts: 8,845
    edited December 20
    Here's a sentence I never thought I'd write. Listen to @goldon re full and final settlement offers.

    You used to work in a kitchen, right? Just a guess here-could your old employer have been saying how much you received in tips or some other benefit in kind?
  • stokefcstokefc Member Posts: 7,867
    Fall out with HMRC at your peril
    If they ever checked you over you will have to pay for an accountant to go over 6 years of accounts and they will go over you with a fine tooth comb
    So think about it if you want to argue with them
  • MISTY4MEMISTY4ME Member Posts: 6,343
    edited December 20
    If you've overpaid Tax on this Year's earnings, you will get it back after your Tax Year ends on 5th April 2025 .....but it will take a few weeks to sort out, unless you get in touch with them with ALL the relevant info needed after 5th April 2025. Think of it like a little Bonus you're getting

    Having had a few different jobs this Year, I'm sure it will all fall into place after the Current Tax Year ends ......but make sure you keep a copy of everything, as I'm sure you do.

    GOOD LUCK David :)
  • Tikay10Tikay10 Member, Administrator, Moderator Posts: 170,984
    stokefc said:

    Fall out with HMRC at your peril
    If they ever checked you over you will have to pay for an accountant to go over 6 years of accounts and they will go over you with a fine tooth comb
    So think about it if you want to argue with them

    @Doubleme


    THIS.


    Seriously, you'll not taken any notice of anyone here, & certainly not from me, so we are all wasting our breath & our time.

    But if you really think going to war with HMRC is a good idea, you need to give yourself a good talking to.

    Just try being polite, sensible & honest with them, & you'll be treated fairly. Trying to be a smartarse with them will be gg you.




  • EnutEnut Member Posts: 3,563
    This is like reading one of those 'online poker is rigged' posts but what you're saying is that the UK tax system and HMRC is singling you out over a few hundred pounds, yes? Have I read that right?

    Please don't ever go self employed. Those of us who are self employed literally have to pay tax IN ADVANCE based on the assumption that we will earn as much next tax year as we have this tax year. So in some cases we give the tax man tens of thousands of pounds, or more, of our money to hold 'on account' against a future bill. They pay no interest on that money so effectively we are giving them that too. And you think you are being treated unfairly!

    Your situation may be the result of your new employer applying an emergency tax code against your earnings as they didn't get your actual tax code in time. It will almost certainly get sorted out and almost certainly the HMRC figures will be correct. I'm not saying they never make mistakes but, trust me, the amount of mistakes they make now are miniscule compared to in the past.

    Also I doubt if many 12 year olds would be able to calculate tax correctly, most adults can't. We still have an education system that results in thousands of children leaving school each year without basic maths skills, let alone the ability to apply those skills to real world situations. It really is very sad.

    You also only have to read a few posts on this, or really any online forum, to also understand that even if some random 12 year old could calculate your tax correctly there is little chance that they could communicate that to you in a coherent letter, after all everyone that posts on Sky Poker is over 18 yet there are a fair few where it is pretty tough to understand what they are trying to get across. As well as leaving school without basic maths skills a lot of kids are leaving without basic English skills too.

    I'm sure your situation will get sorted out in due course and, as have others have advised, I certainly wouldn't be suing HMRC or threatening HMRC. That probably wouldn't go well for you, financially that is, I don't think HMRC will send the boys round or anything like that, despite what you may think.

    Oh and Happy Christmas.
  • Tikay10Tikay10 Member, Administrator, Moderator Posts: 170,984

    I always followed the rule that there are two crews never to mess with - HMRC, & the Immigration Officers at USA Airports.

    Only pain & misery awaits those who do.
  • DoublemeDoubleme Member Posts: 2,183
    So without going to much into my circumstances the job I have now is the only job I have had this tax year that I was paid for.

    basically technically i am employed by multiple organisations because I have multiple zero hour contracts, and a lot of companies never end these or remove you from their books whether they should or shouldnt I dont know. I can go into speculation on that but meh. However I have only been actually working in and being paid by one company this tax year (since april 2024)

    since the letter with the cheque does not say in full and final settlement I guess I can cash it without losing the full amount I am entitled to. I left the cheque behind and have gone up to my girlfriends folks (with my girlfriend) for christmas and new year period. So I guess I can cash the cheque when I get back and there is time to consider my options before going full nuclear.

    There are a few things I dont understand, like when they say I overpaid tax in previous years, is that before or after tax rebates because I did get tax rebates in the past, so not sure if I potentially owed more or not.

    Why are they been so silly with the £2 from the year they said I underpaid tax? like if they owe me a lot but they find £2 I owe them cant they just take the £2 of that? eg if they think they owe me £500 but they find £2 I owe them why cant they just pay me £498 instead of paying me something and insisting I pay that £2.

    Apparently I have until March 2025 to pay that and they mentioned possible instalment plans if this is an issue. Well I doubt there are many people in the UK who cant find £2 maybe I am about to be very corrected on that one I dont know. However I kind of just think that if someone is so destitute that they cant get £2 together maybe installment plans is just unnecessary harsh like taking 66p a month off them wont do much but hurt them, or is it have a plan in place by march 2025 so can spread over 12 months? so someone who is absolute destitute can stress about 17p a month but billionaires na never chase them. I am just saying if someone owed me £2 and geniunely could not afford it in the vast majority of circumstances I would just say forget about it rather then insisting on instalment plans.



  • Tikay10Tikay10 Member, Administrator, Moderator Posts: 170,984
    edited 11:57
    @Doubleme

    "However I have only been actually working in and being paid by one company this tax year (since april 2024")



    SINCE April 2024 is not really relevant until your NEXT Tax Return is due, which will be no later than 31st January 2026.

    The Tax Returns currently being submitted & scrutinised by HMRC are for the year ENDING April 2024, & need to be submitted by 31st January & so what your working arrangements were this year is not yet really relevant.

    The "time to pay" is just generic, they can't possibly write individual letters to everyone who owed/is owed. In most cases the Time To pay Option is relevant & useful. No need to make a 3 act play about it because in this case it's not relevant. You do love to make a drama out of nothing, don't you, lol?

    Seriously, if it troubles you that much, get a Tax Advisor. I got one some years ago, he's cheap, reliable & worth every penny, he handles all the HMRC grief. And best of all I don't end up getting bent out of shape over some triviality every time HMRC write to me.
  • stokefcstokefc Member Posts: 7,867
    Doubleme said:

    So without going to much into my circumstances the job I have now is the only job I have had this tax year that I was paid for.

    basically technically i am employed by multiple organisations because I have multiple zero hour contracts, and a lot of companies never end these or remove you from their books whether they should or shouldnt I dont know. I can go into speculation on that but meh. However I have only been actually working in and being paid by one company this tax year (since april 2024)

    since the letter with the cheque does not say in full and final settlement I guess I can cash it without losing the full amount I am entitled to. I left the cheque behind and have gone up to my girlfriends folks (with my girlfriend) for christmas and new year period. So I guess I can cash the cheque when I get back and there is time to consider my options before going full nuclear.

    There are a few things I dont understand, like when they say I overpaid tax in previous years, is that before or after tax rebates because I did get tax rebates in the past, so not sure if I potentially owed more or not.

    Why are they been so silly with the £2 from the year they said I underpaid tax? like if they owe me a lot but they find £2 I owe them cant they just take the £2 of that? eg if they think they owe me £500 but they find £2 I owe them why cant they just pay me £498 instead of paying me something and insisting I pay that £2.

    Apparently I have until March 2025 to pay that and they mentioned possible instalment plans if this is an issue. Well I doubt there are many people in the UK who cant find £2 maybe I am about to be very corrected on that one I dont know. However I kind of just think that if someone is so destitute that they cant get £2 together maybe installment plans is just unnecessary harsh like taking 66p a month off them wont do much but hurt them, or is it have a plan in place by march 2025 so can spread over 12 months? so someone who is absolute destitute can stress about 17p a month but billionaires na never chase them. I am just saying if someone owed me £2 and geniunely could not afford it in the vast majority of circumstances I would just say forget about it rather then insisting on instalment plans.



    Hey , i have to look under the sofa so i can play the two quid deepy occasionally
  • goldongoldon Member Posts: 9,141
    edited 11:08
    FREE advice comes at a price........balancing the books is a priority. Hic!


  • bbMikebbMike Member Posts: 3,720
    Or cheaper still, get a twelve year old to have a look over it for you.
  • Tikay10Tikay10 Member, Administrator, Moderator Posts: 170,984
    edited 12:01

    And yes, just pay the cheque in. Doing so will not alter a thing as to your possible rights to a further refund, cashing the cheque does not signify loss of rights to the potential further monies owed.
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