New Tax Codes

RoadeRunner

Has anyone else noticed on their new tax codes that the sneaky Inland Revenue are now trying to get your tax in advance twice ? If you have self assessment you have to make a payment towards next years tax at the end of January (next week eek) but now I have received my new tax code they have added an additional adjustment for interest I may receive next year on any savings I have at the higher rate.They make it sound as though they are doing me a favour by adjusting my tax code and collecting it monthly. Is it just me or is this Gordon trying to get me to pay even more before I have even earned it !!!!! :j

ctm_2

The aim of this is so that you pay the correct amount over the year, and therefore don't end up with payments on account the following year. For the first year that you have such deductions in your code and have to make payments on account, then it may well end up that too much is deducted over the year. however, the year after that it will all have levelled out and hopefully the bill at the end of the year is less (and therefore payments on account for the following year are less, or non existant)

Remember, not everyone makes payments on account, and if you think they are set too high you can ask for them to be reduced to more realistic figure. Be warned. if you reduce them too much, and your liability at the end of the year is greater than the amount you reduced the payments on account to, you will be charged interest as the amount will increase the payments on account to the level they should have been at.

And if you do 'pay twice' over the year, you will get it back.