Tax Calculation Summary last year.

[bstar1]

If anyone could please answer for me.

I received a tax calculation summary last year before the APN arrive, I would just like to know the following:

the section where plus" Benefits & Expenses" - this figure is from the P11D

The Section "Other Income" where did they get this figure from ? as this is not the total amount of the EBT awards for the tax year it's considerably less but if you add "Benefits & Expenses" it makes up the total EBT award for the year, I just want to know where did they get "Other Income" from?

Thanks

[StrengthInNumbers]

From p11d or estimate based on figures given by other users of scheme

[bstar1]

estimate based ? WTF

I'm going to ask them for evidence of where they arrived at the "Other Income" figure tomorrow...cheeky fXXXXXers

Will update you once I get the feed back,.

From p11d or estimate based on figures given by other users of scheme

[webberg]

estimate based ? WTF

I'm going to ask them for evidence of where they arrived at the "Other Income" figure tomorrow...cheeky fXXXXXers

Will update you once I get the feed back,.

It is perfectly permissible for HMRC to use estimates so long as they can show that they are based on known data.

A lot of numbers here are likely to be calculated as

Loan = 5 x declared salary = A.
A less P11D = B
B = other income.

Is that a valid calculation? HMRC think so. Will a Judge think so?

[bstar1]

It is perfectly permissible for HMRC to use estimates so long as they can show that they are based on known data.

A lot of numbers here are likely to be calculated as

Loan = 5 x declared salary = A.
A less P11D = B
B = other income.

Is that a valid calculation? HMRC think so. Will a Judge think so?

Can they enforce banks statements? By law?

[webberg]

Can they enforce banks statements? By law?

Yes in some instances.

Where there is a dispute and the taxpayer is being uncooperative, HMRC can issue a third party notice to pretty much anybody.

Banks tend to resist large scale trawls of information (but bear in mind that they already supply lots of data anyway, such as interest earned, high value cash transactions, investments in certain products) but do cooperate for individual requests. HMRC is NOT obliged to let you know that they have made a request although they normally do.

[meanttobeworking]

It is perfectly permissible for HMRC to use estimates so long as they can show that they are based on known data.

A lot of numbers here are likely to be calculated as

Loan = 5 x declared salary = A.
A less P11D = B
B = other income.

Is that a valid calculation? HMRC think so. Will a Judge think so?

Does that mean they won't accept a correction to the actual amount? Sorry if that's a stupid question, but I've learnt that common sense and rational thought tend not to factor too much these days.

[webberg]

Does that mean they won't accept a correction to the actual amount? Sorry if that's a stupid question, but I've learnt that common sense and rational thought tend not to factor too much these days.

NO. If you have better information then they have to accept it.

[bstar1]

It is perfectly permissible for HMRC to use estimates so long as they can show that they are based on known data.

A lot of numbers here are likely to be calculated as

Loan = 5 x declared salary = A.
A less P11D = B
B = other income.

Is that a valid calculation? HMRC think so. Will a Judge think so?

On my calc if this was used it would be over 1k compared to the actual assessment sent to me, which is already incorrect by "over" £500 by me going through my statements of the actual EBT awarded in that particular financial year and comparing it to the assessment, ie: "Benefits & Expenses" + "Other Income" = £500 over.. comparing it to the assessment from HMRC.

I used my formula for another year:

Benefits & Expenses(as shown in P11D) + Other Income = Spot on to what I actually received when I tallied against my bank statements of actual EBT reward for the whole tax year.


The "other income" item is an area I'm keen to explorer as to how HMRC arrived to?

[webberg]

On my calc if this was used it would be over 1k compared to the actual assessment sent to me, which is already incorrect by "over" £500 by me going through my statements of the actual EBT awarded in that particular financial year and comparing it to the assessment, ie: "Benefits & Expenses" + "Other Income" = £500 over.. comparing it to the assessment from HMRC.

I used my formula for another year:

Benefits & Expenses(as shown in P11D) + Other Income = Spot on to what I actually received when I tallied against my bank statements of actual EBT reward for the whole tax year.


The "other income" item is an area I'm keen to explorer as to how HMRC arrived to?

Then you have 3 choices.

1. Write (not call) HMRC and ask them to explain.

2. Have your adviser write to HMRC and then explain it to you

3. Have your provider group/BG write to HMRC and then explain it to you.

Advantage of #1 = no cost. Disadvantage = probable HMRC goobledegook answer.

Advantage of #2 = more precise question and answer. Disadvantage = cost

Advantage of #3 = possible shared cost, perhaps precise question. Disadvantage = a cost is still a cost