Reply With QuoteBook at meeting at your nearest tax office.
No idea if anyone has any ideas on this one and before anyone suggest indi advice that will likely be my next port of call but frankly having to pay t osort out something that doesnt seem to be my issue/error is just plain irritating!
Long story short I have t complete a self assessment, I am only PAYE have no other incomes and only use an offset mortgage so no 'earned' interest so technically as simple as it gets, I did have 3 different jobs in 2016/7 tax year but all were PAYE so again shouldnt be too complex!
Having completed/reviewed my last 3 years tax returns each one shows a total match (within a few pounds) between the HMRC data and any commonly used tax calculators online, 2015-6, 2016-7 all around a fiver out from what I have paid to what it says I should have done.
Here is the crux, I have completed my 2017-8 SA and again if I type in my total earnings for the period and the tax paid again matches (well actually it says I have paid around £260 too much) but the HMRC page is telling me that:
(Underpaid tax for earlier years included in your tax code for 2017–18) is £3845
WTF - how can I owe £3845 when the previous years are exact paid/due and 2017-8 is (according to the web calculator) overpaid by me to around £260???????
There seems to be nowhere I can see how this £3845 is made up and nowhere to ask, the only thing it states is that this amount is due for payment by 31 Jan 2019!!!
Does anyone have any clue what could be going on as I now have two choices, pay some sort of FA to help me or potentially spend hours on the HMRC helpline where in an experience from a few years ago I suspect I will speak to some twelve year old who will just tell me over and over again that I owe the amount shown and pay it or else!
Book at meeting at your nearest tax office.
Does the figure include payment of tax on account for next year maybe?
Originally Posted by 200mwaterresistant
It shouldn’t for PAYE ‘customers’
(the new term for taxpayers)
I've had a few queries with SATR's before and have found their staff on the helplines very good - they listen, take everything in and it feels like they're on your side too. I'd recommend giving them a call in the first instance as it's free.
Same here.
PAYE for last 3 years - and all income, interest & BIK declared... it’s on my P60 & P11D...
...but apparently I still owe HMRC £650.
Useless tw*nts.
z
I can only echo about the help line being very helpful, in my case last year I had a demand for £40,000 unpaid tax and a very high tax code!!!
Now being PAYE with no savings/ investments whatsoever I was a little shocked to say the least
It turned out they had predicted that I would be on a stupid amount of money by the end of the tax year,
So I had a light hearted chat with the tax lady who looked back over the last three years and agreed that it was unlikely I could have had such a pay rise and put my mind at rest that once my p60 was issued all would be well again, which it was
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For the past 4 years as a PAYE, I have nothing but issues with them. I complete a tax return and the accountant I have used confirms how much I owe or how much they owe me. One year I had a refund of £1600, however a month later they sent me a demand for £1500. I questioned this and they simply state it’s an underpayment from a previous year. When comparing other years I either get a small refund but then they say I’ve underpaid.....
I owed them £60 this year according to my accountant, and made the payment, they then wrote to me saying I owe them £220 of which he challenged and they simply stated it was as a result of a underpayment for the previous year despite paying them £125. He has now said that’s up to me to keep an eye on my tax code as they simply can’t explain to him the differences.
The system isn’t fit for purpose.
Good luck with your quest, however you may have to ask specifically for the escalation team.
B
Give them a call, they’re actually reasonably helpful over the phone. I came back from 5 years in Germany and now have to do a self-assessment every year and despite also being PAYE have owed chunks of money for both 2016 and 2017. They suggested that they could remedy my 2017 likely shortfall by adjusting my tax code to leave me £1000 a month worse off.
Don’t forget things like personal allowances disappear completely when you earn above a certain level (£100k), things like bonuses may push you over that level which your P60 will recognise but your tax code may not reflect until the year after.
Anyhow, worth giving them a call to clarify and they’ll tell you exactly why you owe what you owe and how you may be able to adjust your tax code to pay it.
Thanks all and seems like I am not alone, looks like I will have to call them then and hope I do get someone at least remotely helpful!
They are all a bunch of useless morons, who have no regard for anyone and act above the law. Retrospective taxation is being brought into Parliament now with this new loan charge and that is just the start of things to come. Remember Cyprus when the EU demanded the government took anyone’s savings above 100k and all legally........
Good luck, hope you get it all sorted.. I would echo what others have said, they are usually helpful on the phone..
Well update time!
So the good news, they admit that I don’t owe the £3845 from 2017-8 and this should have been £130, no idea how the error occurred or how it is now £130 (which I had to pay immediately by the way!) and the lady I spoke to just said it is what it is and she cant explain any better than that!
The bad news, they have worked out I have underpaid this year by £2600 which they need to claim back over the next 5 months at £520 per month!! The reason being, again with apologies from the lady, that they incorrectly assume income from just part of 2017 was a full year in 2018 so their error but as usual tough it needs to be paid!
Out of interest I checked back on 9 years of SA on their web site and 5 of 9 years I ended up paying amounts of between £500 and £1600 to HMRC even though I have only ever been PAYE with no other income.
Any other industry or if in my job I screwed up that often I wouldn’t be working in the same job but clearly incompetence at HMRC is part of the criteria for being in the job I guess!
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Last edited by nictry; 9th November 2018 at 23:05.
Glad you got it sorted in that the £3k+ was an error (though I'd want to know why and you could insist they explain it in writing (if you formally complained they would).
PAYE works providing your tax affairs are quite straightforward and you ensure your new employer gets your P45 or correct details of your pay and tax to date from HMRC. It sounds like that didn't happen in this case so you presumably had a month or 2 in a new job with less tax deducted than should have been in which case you possibly could spotted this in your net pay.
There are limits on coding out underpayments as per here https://www.gov.uk/hmrc-internal-man...nual/paye12070
I may be wrong but i think you have the choice on whether to pay it via your tax code this year or defer it to next years tax code (i.e. from April ‘19) and thus avoid being significantly worse off for the next 5 months. I was offered to pay back my “arrears” at £1000 per month for 6 months or have my tax code adjusted accordingly for 2018. Since I knew my salary was changing anyhow I chose the latter, ensuring the money was in my pocket rather than HMRC’s.
Also editted to add: Agree 100% with the post below about speaking to them. I couldn’t understand why I owed money until I spoke to someone whim was very knowledgable and helpful and gave me options and choices.
Last edited by tiny73; 11th November 2018 at 07:49. Reason: Fissuring the morning?? WTF?
The PAYE system is designed to collect tax through a tax code operated by your employer either weekly or monthly depending on when you are paid. The code is based on the most up to date information which is by the nature of the tax year based on previous years data.
Unfortunately like many other processes there is an expectation that the taxpayer should keep a check on their code and payslips to ensure HMRC are aware of any changes in circumstances. It is not sufficient to say “ I’m PAYE so my tax should be right” as there can be a number of variables that may make this not to be the case.
There are some stats at the link to show you the number of post items and telephone calls dealt with by HMRC. Whilst I ageee that sometimes errors are made but equally you might be surprised how many SA Returns, pension submissions and employer errors are also made.
Try ringing them speaking to the operator like a human being and you might be surprised by the quality of the service e you get.
https://www.gov.uk/government/public...e-january-2018
Agreed with the comments above, I should have twigged that they were under taxing me this year but as pointed out it’s easy to assume as PAYE I didn’t have to ‘check’ it was right!
Honestly I probably could have asked to push it beyond the end of this year to recoup the underpayment but frankly I just want to be back on track for next year so at least I know I am up to date
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