Reply to: Damned if you do & damned if you don't

[Jessica@WhiteFieldTax]

, what I’m not sure of is would the self assessment system automatically know to change my tax code to 810L for 12-13 as it will now see my income in 12-13 didn’t hit the threshold were T gets applied or do I need to do something manually ?

Think you mean will it change your 13-14 code?

12-13 will correct itself through SA, get the return in ASAP, and repayment will wing its way to you.

13-14 should be corrected as a result of the SA return, but its easy enough to call them, tell them your income is less and, assuming you think 13-14 will be below the allowance claw back, ask them to "remove the restriction" - they won't ask for proof, its just a verbal thing.

HTH

[ELBBUBKUNPS]

For clients in Self Assessment I tend to suggest not getting too worried about tax codes unless they are wildly out, as the SAR deals with the errors.

The changes to ESC A19 are a real scandal waiting to happen as they effect non represented PAYE tax payers, particularly the elderly with a few pensions. I'm not entirely impartial here, I do voluntary work for Tax Help for Older People - tax help for older people on low incomes with tax problems - normally 1 or 2 cases a month - ESC A19 has to be used in probably 1/3 to 1/2 the cases due to HMRCs cockups on codings. The proposed re-enactment will remove a lot of protection for this user group, and other vulnerable people. I replied to the consultation along those lines.

I've used it in some sad cases - a terminal cancer patient being perused for £2,000 as he was an easier target than the employer who didn't follow the PAYE rules. Got it written off in the end, but it shouldn't be necessary.

Question is will RTI improve things or make them worse?

*shakes head, and wanders off muttering*

Hi, regarding tax codes being incorrect and self assessments sorting it will it automatically correct it and factor it in with the calcs or do I still need to do something ?

My tax code was changed mid 12-13 (reduced allowance and putting me on a T code), change was based on my 11-12 income. I now know my income for 12-13 will not be as much as 11-12 and therefore my tax code for 12-13 should of stayed at the default level 810L.

From my own calculations as a result of my tax code change I’ve significantly over paid my income tax in 12-13, what I’m not sure of is would the self assessment system automatically know to change my tax code to 810L for 12-13 as it will now see my income in 12-13 didn’t hit the threshold were T gets applied or do I need to do something manually ?

[malvolio]

Regarding receiving a refund. You can request the refund once you have all your facts and it is clear that you are entitled to it. When they get round to issuing it to you on the other hand is a different topic. :-)

Oddly enough I reported to SJD Cheltenham in late January that I'd managed to pay HMRC the January 2013 quarter's PAYE/NIIC bill twice using different references (blamed on the chaos around going on holiday two days after Christmas...). The cheque arrived yesterday.

[SarahL2012]

You also have to combine it with the impossibility of getting hold of HMRC via the telephone to get advice. My wife spent 3 hours trying to rectify a tax code issue. 5 minutes to get it changed and a refund 2 hours 55 on hold waiting to speak to someone.

And she only did something because I told her that the letter from HMRC with this years tax code seemed awfully strange and what other income did she have that I didn't know about.

And that's why I put everything in writing to them. Takes a fair few weeks to get a response, but at least I can evidence it went (recorded delivery if important) and I don't have to waste my time listening to a recorded messages.

[Jessica@WhiteFieldTax]

For clients in Self Assessment I tend to suggest not getting too worried about tax codes unless they are wildly out, as the SAR deals with the errors.

The changes to ESC A19 are a real scandal waiting to happen as they effect non represented PAYE tax payers, particularly the elderly with a few pensions. I'm not entirely impartial here, I do voluntary work for Tax Help for Older People - tax help for older people on low incomes with tax problems - normally 1 or 2 cases a month - ESC A19 has to be used in probably 1/3 to 1/2 the cases due to HMRCs cockups on codings. The proposed re-enactment will remove a lot of protection for this user group, and other vulnerable people. I replied to the consultation along those lines.

I've used it in some sad cases - a terminal cancer patient being perused for £2,000 as he was an easier target than the employer who didn't follow the PAYE rules. Got it written off in the end, but it shouldn't be necessary.

Question is will RTI improve things or make them worse?

*shakes head, and wanders off muttering*

[The Spartan]

But, just HTF do they expect ordinary mortals to determine the correct tax code if their own officials and systems cannot?

Absolute twunts.

Telepathy?

[BolshieBastard]

HMR&C, it appears, are moving some more goalposts around so that it will be the taxpayer's responsibility to make sure that the tax code HMR&C have given them is correct HMRC tax code change means it is up to taxpayers to spot mistakes | This is Money

The reasoning is simple; currently, any error by Government Departments that result in any overpayment to the individual's benefit ie benefit payment or less tax collected than should have been, means the recipient does not have to repay or make good the Department's error.

Official error and writing off these payments amounts to millions or billions of pounds lost to the Exchequer.

What they are now doing is shifting the onus so its not their 'fault' for any overpayment or under collection of taxes.

But, just HTF do they expect ordinary mortals to determine the correct tax code if their own officials and systems cannot?

Absolute twunts.

[Nathan SJD Accountancy]

Based on being a bog standard Ltd Co. contractor with minimal salary and dividends I'd have thought I'd be on the standard code (810L for 12-13 for example) Needless to say thats not what they sent me...

My guess.... they included some items that were on your P11d from your previous employment, or added on items that were on your P11d from your limited that were not taxable as they were reimbursed.

[DaveB]

My tax code was changed and they said I owed a fair few quid which I disagree with (Im permy), I rang HMRC to ask about it but they were useless had no idea why it had changed. Is it the case if I get an accountant to look at it all and my income they can work out what code I should be on, and how do you go about getting a refund ?

Timely thread, I've just had a new tax code notification through that definatly looks wrong.

Based on being a bog standard Ltd Co. contractor with minimal salary and dividends I'd have thought I'd be on the standard code (810L for 12-13 for example) Needless to say thats not what they sent me...

[Nathan SJD Accountancy]

My tax code was changed and they said I owed a fair few quid which I disagree with (Im permy), I rang HMRC to ask about it but they were useless had no idea why it had changed. Is it the case if I get an accountant to look at it all and my income they can work out what code I should be on, and how do you go about getting a refund ?

Yeah, they should be able to once you tell them your circusmtances e.g. current / past income, taxable benefits etc.

If it relates to previous years, a good idea may be to ask HMRC to send you details of your income from the past few years that they hold. Compare that to your records e.g. P60's etc and see if there are any differences. It is possible that in one year, you were taxed incorrectly.

HMRC have a habit of changing a tax code and simply saying 'you underpaid tax in 2008/09' without further details.

On the tax code notice it should say the reasons they have changed it. If you disagree, tell them to change it and usually they will, unless it is as a result of underpaid tax in which case asking for income details they hold may be handy.

Regarding receiving a refund. You can request the refund once you have all your facts and it is clear that you are entitled to it. When they get round to issuing it to you on the other hand is a different topic. :-)

[ELBBUBKUNPS]

My tax code was changed and they said I owed a fair few quid which I disagree with (Im permy), I rang HMRC to ask about it but they were useless had no idea why it had changed. Is it the case if I get an accountant to look at it all and my income they can work out what code I should be on, and how do you go about getting a refund ?

[Nathan SJD Accountancy]

ahem...I little trick I use to contact them (and normally gets picked up straight away) is to use the international contact number from a phone that blocks my number...

I did try from my mobile once unblocked and got told off for using it...

HTH

Another trick.... Keep repeatedly pressing * on the telephone pad. Cut's out all the talking and puts you through to someone straight away.

Or you can try your luck at the Agent Priority Helpine (We don't wait)

[The Spartan]

I use the international number as I have to

[Alias]

ahem...I little trick I use to contact them (and normally gets picked up straight away) is to use the international contact number from a phone that blocks my number...

I did try from my mobile once unblocked and got told off for using it...

HTH

[The Spartan]

HMRC are useless, I received a letter saying I owe 800GBP turned out yet again it was their screw up as I'm sure Lisa can confirm this. Anyhow it'll still take over 4 weeks for them to process the information they require from the date it is received.