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surprised nobody has expressed concern they will be getting the dreaded on your majesties youve underpaid us concerns
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Been thinking about it - I had Tax problems last year, having drastically reduced my income and rolled everything else up reasonably efficiently I was rather hoping I'd be one of the ones that had over-paid.
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If you are PAYE, you should know if your tax is right, its not tough to work out.
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Wasn't that simple for me Zero....
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I guess you were a partner or something like that, so not your regular PAYE example.
For us PAYE bods, its easy
Its easy for me now, its pension-allowance x 20% tax.
Not even any NI payments! ( I racked up the maximum)
Last edited by: Zero on Sun 5 Sep 10 at 15:04
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If it is that simple for us to work it out how come HMRC can't do it and get it right? I got a 3 figure refund a month ago but as I have a salary from working and 4 other sources of pension/investment icome I shall not be looking forward to the postman's visits for the next few weeks. I wonder what HMRCs top man got as a performance related bonus last year? On this showing it should have been a bill not a hand-out!
Last edited by: Perky Penguin on Sun 5 Sep 10 at 15:06
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if it was that simple why has the wife been on emergancy tax code for the last 6 months?
there arent enough workers at hmrc these days they were all downsized under tony
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what have YOU done about it, Have you given them sufficient details to enable the to reolve the tax code?
I sorted my emergency tax code out with one phone call.
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i only found out yesterday when i asked her how we would spend our new found wealth we might be getting
:-(
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I havent earnt enough to pay tax for years, I dont even claim all my expenses, no need, still dont go over the threshold - gotta love recessions.
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>> I sorted my emergency tax code out with one phone call.
>>
So did i, efficient enough chap who unfortunately suffered a sense of humour bypass some time ago.
One could be forgiven for thinking all this is very convenient.
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PAYE is predicated on everybody having one job. People with 'portfolio' careers or Mrs Mopp combining three cleaning jobs might hit problems.
The system is no longer 'fit for purpose' but what should be done??
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What should be done ? Well one method would be for all PAYE tax to be taken at a flat rate of say 20% whether you earn £1 or £1,000,000 a month / week / whatever.
Then, (as most self-employed people do anyway ) there would then be a requirement to complete a tax return once a year so that a balancing payment could be assessed or a rebate applied.
More or less the same system as applied to bank interest income when we used to get that....
Last edited by: Humph D'bout on Sun 5 Sep 10 at 22:57
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good point
ive got another one
why not make vat 20% and really screw trade
oh yes
that one comes in in january
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Edit - above assuming similar tax break points and percentages as apply now.
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It's not been a foolproof system for a long time... especially for company car drivers. It's changed a bit for us lot since the taxation was on emissions and not mileage bands and my employer taxes at source.
When I had a car when there was less tax to pay for 18k or more business miles (I only did that one year and it was closer to 30k)... so I applied for a tax refund. The outcomes was:
- Tax back for that year as expected
- I'd underpaid a little the year before (via PAYE)
- I'd overpaid the year earlier
So they went back 3 years and worked out they owed me about £2k all in all including me underpaying one year. Nice bonus. No interest paid though. This was around 2000 mind.
So PAYE has not been 100% accurate for ages.
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Seems some new software was introduced a couple of years ago - you can guess the rest...
Some tax expert stated on TV today that the PAYE scheme harks back to 1944 and is basically not up to the task, especially as many people have more than one job and/or various financial interests.
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To the countries credit, reducing the interest rate to 0.5% has removed the need to really declare interest on any accounts ;-) Well sort of.
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I think it's all rather exciting waiting to see what, if anything, postie brings.
Could be an extra £500 - new telly perhaps?
Or a bill for £1,500 - that would be tears before bedtime.
Or a mixture of both.
Or nothing.
I can't wait.
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>> the dreaded ...........
It seems that HMRC dreaded receiving my completed tax return. This year they declared that they proposed to no longer automatically send me the form in future. They're not going to get away with it that easily! I want my tax bill calculated to the nearest penny!
Last edited by: L'escargot on Mon 6 Sep 10 at 10:11
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>> I want my tax bill calculated to the nearest penny!
I'd always thought they worked to the nearest pound (of flesh).
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>> >> I want my tax bill calculated to the nearest penny!
>>
>> I'd always thought they worked to the nearest pound (of flesh).
>>
They use income received and allowances due to the nearest pound (down or up as appropriate) , but tax due is stated to the nearest penny below.
Last edited by: L'escargot on Tue 7 Sep 10 at 07:01
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I've always had a straightforward single full-time job, with no other sources of income. Last tax year I stopped working 3 months in, and according to my P45 I paid several hundred pounds in tax. As my gross income for the tax year was less than my tax code, should I be due a refund of the tax I paid? How do I find out? How do I get it? Not something I've ever delved into before.
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Yes, if your total income for the year was < the personal allowance you should get the tax back. Try ringing your tax office - there might be a simple form you can fill in to declare you are a non-earner now, otherwise you will need to complete a self assessment form. You can do this on line (you might need to arrange a reference number with your tax office to register), and if've got your P45, bank statements, and any other income info it won't take very long - easiest few hundred quid you will ever have 'earnt'!
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>> easiest few hundred quid you will ever have 'earnt'!
I hope so, that's today's task sorted out then :-) I've only just gone back to work part-time, but now with an income so low as to fall outside the tax regime. I was slightly concerned to read (via a quick Google) of 2-3 month backlogs of post in tax offices!
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If it's your mistake, you're liable. If it's theirs (and not the result of incorrect information supplied) you're not. Seemples.
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>> If it's your mistake, you're liable. If it's theirs (and not the result of incorrect
>> information supplied) you're not. Seemples.
>>
For me, that may just be an acceptable attitude to take when dealing with a commercial organisation, but not with the Treasury which funds the NHS, Pensions, Defence, etc.,
Anyone who pockets excess benefits or pays less tax than legally due is a drain on the lawful tax-paying citizens.
Last edited by: John H on Tue 7 Sep 10 at 13:17
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Did some thinking on this today - my 2009/10 tax year was greatly effected by two major events, my wife's death and finishing work - my tax code was down to 975 at one stage - I felt a little hard done by, hopefully I may be one of the lucky ones !
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A talking head on the Beeb 1pm news said that if a claim for underpayment related to the tax year ending 5th April 2009 or an earler tax year they were out of luck in asking you to pay. I think I shall be OK personally as every year I have had some adjustment, either a small bill collected thru my salary or a cash refund.
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>> an earler tax year they were out of luck in asking you to pay.
I think there's a caveat that the mistake is their's not yours:
"If people provided HMRC with all the information they needed to get their tax code right and HMRC failed to do this, taxpayers can ask for an Extra Statutory Concession, also known as an ESC A19."
from a recent Telegraph article:
tinyurl.com/2b498ok
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AJH - I am sure you are right! I grovel at your feet and will try harder next time!
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In typical negative accountant style, I have to say that in 33 years of GP accountancy, I've never know anyone have sufficient written evidence to support a claim that they gave HMRC all the information they needed to issue an appropriate PAYE code and 12 months later they hadn't received one!
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PP - I note that a caller whose wife had received a 'shortfall' notification this morning, but who happened to be an accountant, checked the figures and discovered that they were taking her previous income as double the real amount. As one of the presenters remarked, garbage in, garbage out...
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JBJ I heard that; equally some poor soul was given her full personal tax allowance on each of her two employments and has got a large bill/surprise. I have a fair size pension to which my personal allowance is applied and the tax deducted using an assigned Code. My salary from work and other income all taxed at BR = Basic Rate so I am not expecting anything too horrendous in the post
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tax underpayement - R.P.
