Allowances & Tax

Here's the issue:

Last month I pointed out to my Pay Office that I had been overpaid LSSA, lets say to the tune of £100.  On this payment I had paid £40 Tax leaving me with £60 in my pocket.  This month quite rightly the Pay Office took back the LSSA to the tune of £100.  Leaving me £40 pounds out of pocket until the end of the tax year when I'm told it will all be adjusted.  

So if Ive got this right I have now loaned the Inland Revenue £40 until next April thanks to the accounting procedures of the APO, money on which they will pay no interest!!  Justice, I think not.  Anyone else in the same boat?

I will point out that the amounts were considerably larger than those stated but the maths got complicated.
Yep - been in the same boat and have never found an ansewer, in fact the pay office look at you as though you are stupid when you question it!

Try posting to Forces Sweetheart (Finance), she might be able to advise.

Well all I can say is this - work out your bloody tax.  If you have paid tax on your LSSA when you receive it, it is obvious that when they take it back from you they give you back the tax.  

Or can you not do basic arithmetic :mad:

Not that I am saying I can, I just use a calculator ;D
OK financiers, here's one for you to get your teeth into:

During a recent conversation, it became apparent that an individual has been paid the same allowance twice - now, this is a tidy sum (over a grand) - here's the dilemma - does he/she offer it up to the RAO or does he/she hang onto it, gain some interest and then give it back when the mistake is eventually discovered. I would never condone keeping it - that's dishonest, but surely it's their mistake and the system never pays any interest on monies owed by them. Come on then - let rip........
Stick the cash in an account that you get interest on, and leave it there. Eventually they will take the money back, and you keep the interest. Just treat it as an interest free loan.


You could be on dodgy ground there, by acknowledging the existance of the money and acting on it you could be showing "intent to permanently deprive the owner of the use of the goods" ie theft. Probably best to 'fess up or keep shtum and plead ignorance (or insanity - wibble)
This is similar to bank errors - in a recent case a court made a customer pay back a sum plus loan-type interest after her bank cocked up.

If you are aware that they've made a mistake, tell them - in writing. Make it clear that it's their responsibility.

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