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Tax Return Time!!!

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Tax Return Time!!!

Old 31st Jan 2019, 01:16
  #1 (permalink)  
Thread Starter
 
Join Date: Aug 2006
Location: Oop North
Posts: 108
Tax Return Time!!!

Baffled by a need to pay HMRC £721 for FY 17/18 whist making no other profit from other parts of my piddly empire, it would seem I had a tax code of 1331L, or a tax free allowance of £13310. The normal tax free allowance for this year was £11500.

Some Q's

have I missed something?
has JPAC screwed up?
has HMRC screwed up?
whatever happened to uniform tax relief for Armed forces?

Can anyone shed any light? This year's Tax code is also not aligned with the standard tax free sum for standard tax payers. hmmm....

Yours, a sleepy PA bloke.
Marly Lite is offline  
Old 31st Jan 2019, 02:43
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Join Date: Feb 2007
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Originally Posted by Marly Lite View Post
Baffled by a need to pay HMRC £721 for FY 17/18 whist making no other profit from other parts of my piddly empire, it would seem I had a tax code of 1331L, or a tax free allowance of £13310. The normal tax free allowance for this year was £11500.

Some Q's

have I missed something?
has JPAC screwed up?
has HMRC screwed up?
whatever happened to uniform tax relief for Armed forces?

Can anyone shed any light? This year's Tax code is also not aligned with the standard tax free sum for standard tax payers. hmmm....

Yours, a sleepy PA bloke.
Iím sure there are many ways this can happen. I had a higher tax free allowance when I was still a UK tax payer and regularly donating to charity. As a top rate tax payer I could claim back the difference (gift aid only claims back 20%). HMRC adjusted my tax code so I didnít have to claim back each year, but I still needed to declare the donations on my tax return otherwise they assume I hadnít made them and therefore owed tax.
m0nkfish is offline  
Old 31st Jan 2019, 08:20
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Join Date: Nov 2015
Location: Farnham, Surrey
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SWMBO is a chartered accountant and many of her clients have suddenly received these notices - in her case she knows they are all mistaken, so it would be worth going back to challenge them to explain it further. But if they stick to it you will probably need to employ an accountant to prove it, and that will cost you a few hundred squids which is not recoverable (even if it was their mistake). But one fundamental thing - unless you are VERY sure of your ground it is better to pay it now, and then prove they need to pay it back - otherwise they will add interest and fines.

HMR&C is a low-pay organisation and few of their staff are actually qualified tax accountants - they make errors daily, and they don't care how much public money they dissipate in the consequences of those errors. Unfortunately there's nothing that can be done about that other than to spend your own money on a chartered accountant to act as your champion in the jousts...

PDR
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Old 31st Jan 2019, 08:44
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Join Date: May 2009
Location: Here
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Did you have a large previous year's expenses claim? They did that to me, I submitted an expenses claim, and they refunded me the tax, but also increased my tax code so I wouldn't have to claim the next year. Then I had a much smaller claim the next year and ended up owing them money.
Davef68 is offline  
Old 31st Jan 2019, 11:57
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Join Date: Mar 2001
Posts: 719
......
Marly -

Tax coding is a guessing game. HMRC is a closed city and there are a few ‘rules’ that they don’t tell you about in the Tax Manuals.

Treat anything from HMRC with great suspicion; because there are lots of scams out there too. The answer to your first three questions is “Very Probably.” .............. However ….

Is the £721 a demand from HMRC (paper P800) or your own calculation of tax owed ?

Are you registered for Self Assessment; ie do you have a UTR ?

Are you specifically required to submit a tax return each year ?

Have you set up an on-line Personal Tax Account with HMRC ?

Does your ‘empire’ includes earnings from another job, self-employment, property or overseas stuff etc ?

Where did you get your Coding 1331L from ? ....... Was it a paper P2 in which case it should have an explanation with it. ........... Or was it culled from your on-line PTA - in which case (for 17-18) it might be one of their rogue (they call it 'hypothetical' ) tax codes ?

Have you ‘gone paperless’ with HMRC ? (Big mistake btw)



A simple solution is to get yourself a reliable commercial tax programme for a few quid. I’ve used TaxCalc for many years. That way you can check everything out off-line and ‘in private’ and have lots of time to ask this sort of question, even if you don’t have to file a return. I would never use HMRC’s on-line tax programme for several reasons.

HTH ................ LFH

.........
Lordflasheart is offline  
Old 31st Jan 2019, 19:07
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Join Date: Oct 2004
Location: England
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Have you made use of the Military Help to Buy Scheme in the last year or two?
Door Slider is offline  
Old 1st Feb 2019, 02:21
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Dave f68,

That might be it!

LordFH,

Its my own calculation at the end of the online process as I'm registered for self assessment, after many years of submitting returns from a rental property. Thankfully I have moved on from this 'sideline' this year after George Osbourne's buy to let swindle (Burglary).

After much fiddling of a capitals gains return the number always came out the same which is how i realised it was a PAYE issue.

Now That I've paid up and calmed down, I'll give it a few days and call HMRC (who I have actually found fairly helpful in the past- believe it or not!!). Then probably JPAC to amend this years code if necessary.

Door S, no but thanks for the response.

thanks all,

Marly.
Marly Lite is offline  

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