MSE News: Tax chaos Q&A: How to fight HMRC demands

Mikeyorks

Drone31 wrote: »

Nowhere on the p800 does it indicate they intend to take the money this way,
.

Read Note 15 of the P800Notes that came with the P800? Then - as it will advise you to do - read the (also) enclosed 'What Happens Next' guide relating to 'How will the underpayment be collected'.

It doesn't have to be taken via an amendment to your tax code - you can make what is known as a 'voluntary direct payment'. Personally I'd advise against it - as it's not exactly 'money saving'? Put the money on one side in an easy access account and get a bit of interest / withdraw a bit if the coded out underpayment diminishes your 'take home'.

Drone31

Mikeyorks wrote: »

Read Note 15 of the P800Notes that came with the P800? Then - as it will advise you to do - read the (also) enclosed 'What Happens Next' guide relating to 'How will the underpayment be collected'.

Yeah I read it; and it would seem they won't be applying the code to me; however all the info I've looked at via the web (and here) seems to indicate thats how they'll take the smaller amounts. Evidently it isn't, though.

It doesn't have to be taken via an amendment to your tax code - you can make what is known as a 'voluntary direct payment'. Personally I'd advise against it - as it's not exactly 'money saving'? Put the money on one side in an easy access account and get a bit of interest / withdraw a bit if the coded out underpayment diminishes your 'take home'.

To be honest, I would rather just deal with it, and get it out of the way - one less thing to worry about, nay? I hadn't actually considered doing it that way if I'm honest, but occasionally, something will always crop up finance - wise which it would just be nice to put out of mind for good.

Mikeyorks

Drone31 wrote: »

Yeah I read it; and it would seem they won't be applying the code to me; however all the info I've looked at via the web (and here) seems to indicate thats how they'll take the smaller amounts. Evidently it isn't, though.

If it's under £2k then they will normally collect via your Coding? But there should be a note on the P800 to that effect?

If not (unusual) ...... then they will contact you after 31st Dec to make arrangements for you to pay directly. If that's the case I would strongly suggest you leave it until contacted - for the (2nd) reason I gave here a few minutes ago :-

http://forums.moneysavingexpert.com/showpost.php?p=37808316&postcount=19

Drone31

Mikeyorks wrote: »

If it's under £2k then they will normally collect via your Coding? But there should be a note on the P800 to that effect?

If not (unusual) ...... then they will contact you after 31st Dec to make arrangements for you to pay directly. If that's the case I would strongly suggest you leave it until contacted - for the (2nd) reason I gave here a few minutes ago :

I'd ring them to check next week to be honest, but from what I'm reading it won't be an easy task to get through

It does sound like waiting may be a better option - I just have that pessimistic tick going on in my brain, that the longer it's left, the more likely there will be errors in April when it comes to assigning those of us who have received the notice, the correct code based on what we've done.

As much as I hate to smack of cliches and mass-hysterical paranoia - I just don't trust them not to balls it up (again!)

Mikeyorks

Drone31 wrote: »

- I just have that pessimistic tick going on in my brain, that the longer it's left, the more likely there will be errors in April

Get rid of the tick! The reality is that 'voluntary payments' within HMRC take a tortuous route. This is only the tip of it :-

http://www.hmrc.gov.uk/manuals/dmbmanual/DMBM209215.htm

Stick the money to one side - wait for contact after 31st Dec (when I think they will formally assess it thereby making it a much more direct / safer account to pay) and pay it then.

But I still find it odd they're not coding it out - as the first option - if it's under £2k and just the one year.

Drone31

I believe I will do that actually, looking at it. Good advice, thanks :beer:

Mikeyorks

Good choice.

suso

Mikeyorks wrote: »

But I still find it odd they're not coding it out - as the first option - if it's under £2k and just the one year.

perhaps not enough income to code it out, or it might more than double the tax so its not permitted.

Mikeyorks

suso wrote: »

it might more than double the tax so its not permitted.

Hadn't considered that! Don't they offer to 3 years in such cases?

suso

Mikeyorks wrote: »

Hadn't considered that! Don't they offer to 3 years in such cases?

not sure what the rules are any more, (I think they used to say 2 years, 3 in extreme hardship after a written request.) on the flyer with the P800 they say they will write after december 31st.

I do know, one of the offices is training all its staff on spreading underpayments over multiple years, so I guess they will try for 2 years at least.