Tax Codes and Rebates

spinnekar

Not sure this has been covered but my partner/accountant pointed this out:-

All the tax codes she has received for clients (approx 12) they have been wrong and were changed for the better.
Any rebate due to clients she has had to chase the tax office as they hadn't
automatically sent it out. Its our money not Gordon's

System

You are correct that the money is ours and not Gordons and there are probably thousands of people whose tax codes are incorrect but, as someone who has worked for the Inland Revenue in the past (what an eye opener), I have to point out that the Inland Revenue do not have a crystal ball which is why they write out to taxpayers so often and send out enquiry forms to be completed. If taxpayers file these in the bin and don't reply then it's their fault if things go wrong. I'm not saying the Inland Revenue is infallible and never make mistakes just that taxpayers have to take some responsibility for their tax affairs also.
As an example: Upon reaching the age of 65 tax payers become eligible for a higher personal allowance and a P161 Pension enquiry form is issued automatically to determine the total income (including investment) that the tax payer has. This is because the amount of Higher Personal allowance given is totally dependent on the total income. If the tax payer fails to return the form the Inland Revenue does not have the information it needs so no higher personal allowance is given at all. Its not unusual for the Inland Revenue to receive a letter some years later from an accountant asking for the taxpayers affairs to be reassessed with regard to the higher personal allowance and the Inland Revenue will happily do this and issue refunds but they can only go back 6 years so the tax payers may still lose out.
My advice to anyone, and this is just my personal opinion, is do not rely on anyone else to ensure your tax affairs are up to date. That includes your employer, pension provider or any other government department (Dept of Work and Pensions, Incapacity Benefit office). Reply to everything you receive from a tax office and let them know of any change in circumstances ie: second job, self employed, occupational pension, CHANGE OF ADDRESS etc. That way you know that you are doing your utmost to avoid paying too much or too little tax.