MSE News: Have you been sent a wrong tax code by HMRC?

in Cutting Tax
75 replies 18.9K views
135678

Replies

  • I have been retired since last June and have received a Tax code with an allowance for medical insurance taken out. I spoke to the Tax people and said that benefit went when I retired, they said they couldn't do anything and to contact my pension provider (ex employer)
    I did that and was told to write to the Tax people myself, as they couldn't do anything either it was the Taxmans error, I have done and now sit waiting.
  • SystemSystem Forumite
    177.9K Posts
    10,000 Posts Name Dropper
    ✭✭✭✭✭✭
    jimbo1205 wrote: »
    I have been retired since last June and have received a Tax code with an allowance for medical insurance taken out. I spoke to the Tax people and said that benefit went when I retired, they said they couldn't do anything and to contact my pension provider (ex employer)
    I did that and was told to write to the Tax people myself, as they couldn't do anything either it was the Taxmans error, I have done and now sit waiting.


    When you retired did your ex employer not give you a revised P11d showing the medical benefit up to the date your employment ceased. HMRC need that to amend your codes for 09/10 and 10/11
  • MSE_Guy wrote: »
    This is the discussion thread for the following MSE News Story:

    "Huge numbers of taxpayers are being sent the wrong tax codes for the next financial year, which starts in April ..."


    OfficialStamp.gif

    By default I'm now on 20% emergency taxation despite sending a tax return to the HMRC with my new pension income. I officially retired last month at 65 years old and found that despite declaring a gross pension of less than my personal allowance, my private pension provider with-held 20% tax because they hadn't been notified of my tax code. I immediately got onto the HMRC website and stated my position but like all government departments they appear to be IT dyslexic and need 15 days or more to reply to me. So far my new pensioner status & experience has been 10 out of 10 from my private pension provider and 0 out of 10 from the Pensions Service & the HMRC. It would be wishful thinking that they could employ someone with a half a brain in the public sector rather than the mental retards that inhabit that space.
  • edited 3 February 2010 at 6:55PM
    SystemSystem Forumite
    177.9K Posts
    10,000 Posts Name Dropper
    ✭✭✭✭✭✭
    edited 3 February 2010 at 6:55PM
    expat_mike wrote: »
    By default I'm now on 20% emergency taxation despite sending a tax return to the HMRC with my new pension income. I officially retired last month at 65 years old and found that despite declaring a gross pension of less than my personal allowance, my private pension provider with-held 20% tax because they hadn't been notified of my tax code. I immediately got onto the HMRC website and stated my position but like all government departments they appear to be IT dyslexic and need 15 days or more to reply to me. So far my new pensioner status & experience has been 10 out of 10 from my private pension provider and 0 out of 10 from the Pensions Service & the HMRC. It would be wishful thinking that they could employ someone with a half a brain in the public sector rather than the mental retards that inhabit that space.


    I think you'll find that quite a lot of the people offering help and advice on this forum, and some of the others, on this website work or have worked in the public sector. I'm one of those people and I find your characterisation of us as "retards" highly offensive.

    As far as your private pension provider withholding 20% from your payments is concerned I would ask

    Firstly - did it start immediately your employment ended and if so is the pension from that former employer? If it is then did you not pass your P45 to the pension provider so that they could use the previous pay and tax details to maintain a cumulative code.

    Secondly - if the pension is from another source did you send your P45 to HMRC?

    Thirdly - have you completed a P161 (Pension Coding Form) advising of your change in circumstances and providing details of all your taxable income sources so that HMRC can assess your entitlement to the age allowance now that you are 65?


    Finally I would say that although HMRC do have some online services they do not yet have the facility to communicate securely by email. A visit to their website will show that they advise they only communicate with the public by receipt of incoming phonecalls or exchange of letters.
    As far as being IT dyslexic is concerned that has nothing to do with the so called "retards" on the frontline and more to do with the government and perhaps you should direct your complaints to your local MP rather than make insulting comments here.
  • This might be news if they actually got the Tax codes CORRECT?!?!?!
    Mine was wrong when I changed jobs and company cars over 12 years ago and I am STILL paying for it even now!
    I have never had a satisfactory explanation why every year I appear to have underpaid tax and it is quite normal for me to recieve 6 or 7 notifications of different tax codes around this time each year
    I have no confidence in the system at all and it seems there is nothing you can do to get the situation improved or resolved, you just have to accept they are right and pay
  • John_PierpointJohn_Pierpoint Forumite
    8.4K Posts
    Part of the Furniture 1,000 Posts
    ✭✭✭✭
    I think you need to post the details of your tax return before you make sweeping statements like that.
    Until very recently I always found the tax man very patient if I sent in figures and he came to a different figure to mine.
    Sometimes it is very annoying having to provide a day's worth of work to demonstrate that no more tax is payable.

    Now if you are saying that the whole system is so complex and riddled with exceptions and arbitrary allowance, so that ordinary people cannot understand that the government is spending too much of of our money - then I would agree.
  • edited 4 February 2010 at 1:29AM
    John_PierpointJohn_Pierpoint Forumite
    8.4K Posts
    Part of the Furniture 1,000 Posts
    ✭✭✭✭
    edited 4 February 2010 at 1:29AM
    Pam17 wrote: »
    I think you'll find that quite a lot of the people offering help and advice on this forum, and some of the others, on this website work or have worked in the public sector. I'm one of those people and I find your characterisation of us as "retards" highly offensive.

    As far as your private pension provider withholding 20% from your payments is concerned I would ask

    Firstly - did it start immediately your employment ended and if so is the pension from that former employer? If it is then did you not pass your P45 to the pension provider so that they could use the previous pay and tax details to maintain a cumulative code.

    Secondly - if the pension is from another source did you send your P45 to HMRC?

    Thirdly - have you completed a P161 (Pension Coding Form) advising of your change in circumstances and providing details of all your taxable income sources so that HMRC can assess your entitlement to the age allowance now that you are 65?


    Finally I would say that although HMRC do have some online services they do not yet have the facility to communicate securely by email. A visit to their website will show that they advise they only communicate with the public by receipt of incoming phonecalls or exchange of letters.
    As far as being IT dyslexic is concerned that has nothing to do with the so called "retards" on the frontline and more to do with the government and perhaps you should direct your complaints to your local MP rather than make insulting comments here.

    Let us not start a battle on here. The original posting was obviously a "rant".
    I too am receiving bad service from HMRC at the moment.
    I sent in a paper tax return accompanied by a letter asking for further guidance about a reasonably complex situation involving untaxed interest.
    I got back a letter asking for more information about 8 weeks later - this I replied to.
    Then I was informed that it was a trust matter and my information had been passed to the trust office.
    Then I got a more complex form from the trust office, re-asking the questions I had already answered and a few more that I did not really understand but I answered them after a bit of research.
    Then I got a phone call saying it was not a trust matter and the file would be returned to the original tax office. In the meantime I have not been asked for any tax and I have not paid any - so presumably I now get fined and have to pay interest?

    The problem seems to be that the tax collector job seems to have been de skilled =
    it is all in the computer now, there is no room for any compromise and the front line staff have become "muppets" with a "this is beyond my skill set" attitude.
    I don't want to be transferred from pillar to post, that is why I spent all morning composing a letter that comprehensively explains the situation and asks for a reply; I don't expect a phone call from someone who knows less about tax than I do.
    We the punters are not responsible for the complex mess of rules on rules; it is up to the staff to explain it to us - when they cannot, especially when they start talking jargon, our resentment will grow.

    If you cannot do this tell your political masters that the system needs to be rationalised.
  • MikeyorksMikeyorks Forumite
    10.4K Posts
    Part of the Furniture Combo Breaker
    ✭✭✭✭✭
    tell your political masters that the system needs to be rationalised.

    Unfortunately, John, the people in charge of 'rationalisation' ......... are the same ones who set out the rules on MP expenses! And we (now) know just how rational they are. And the same decision makers who removed the 10% tax rate .......... and actually labelled it 'simplification'. Whilst adding a 10% Savings rate which is far from simple ....... and then retreating in red-faced haste and adding £600 to most Personal Allowances. And the same decision makers who decided that ISA allowances should increase .... but those over 50 could have it from half way through the current tax year! With all the consternation that has caused to ISA providers and their customers. The list is endless.

    On the other side there are those who permanently seek to 'bend' the rules to their advantage. There is a whole industry out there developing and selling products designed to reduce Corporation Tax / Inheritance Tax (your obvious favourite?) / Stamp Duty Land Tax / Income tax. And - to combat this - the legislators introduce more rules and - ergo - greater complexity. So the old adage regarding having your cake and eating it applies. If you don't want complexity ...... be wholly simple. It is possible :p
    If you want to test the depth of the water .........don't use both feet !
  • edited 4 February 2010 at 2:23PM
    John_PierpointJohn_Pierpoint Forumite
    8.4K Posts
    Part of the Furniture 1,000 Posts
    ✭✭✭✭
    edited 4 February 2010 at 2:23PM
    I agree.

    If you and I are looking to see if something with one tax is legal we have this possibility between us:

    NN We agree no tax
    YY We agree tax payable
    YN We disagree
    NY " " " " " " " "

    Let us call that a complexity of 2

    Now add a new tax rule (possibly to close a loophole).


    NN NN We agree no tax
    YY YY We agree tax payable
    NN YN We disagree
    NN NY " " " " " " " "
    YY NY " " " " " " " "
    YY YN " " " " " " " "
    YN YN " " " " " " " "
    YN NY " " " " " " " "
    NY NY " " " " " " " "
    NY YN " " " " " " " "
    YN NN " " " " " " " "
    NY NN " " " " " " " "
    YN YY " " " " " " " "
    NY YY " " " " " " " "

    You get the idea, we are up to 10 or so possible disagreements, the complexity is growing exponentially.

    It is like the Chinese Emperor who said to his winning general: What riches can I give you and he replied:
    "Just put one grain of rice on the first square of the chess board, two on the second, 4 on the third etc. etc"

    Before long the whole country was engaged in collecting this tax.
  • edited 4 February 2010 at 7:07PM
    millermiller Forumite
    1.4K Posts
    Part of the Furniture 1,000 Posts Combo Breaker Photogenic
    ✭✭✭
    edited 4 February 2010 at 7:07PM
    I don't want to be transferred from pillar to post, that is why I spent all morning composing a letter that comprehensively explains the situation and asks for a reply; I don't expect a phone call from someone who knows less about tax than I do.

    I hate firms who try and wash their hands of a matter with a phonecall after you've spent time writing a letter. I got my own back at a high street bank by refusing to pick up my mobile with "private number" after I had written a letter of complaint. I had a hunch it was them - and when I received their written response it whinged that they were unable to phone me (yeah... I know!!).

    Edit: and also of course by phoning there is no record of what happened for you
This discussion has been closed.
LATEST NEWS AND GUIDES