MSE News: Hundreds of thousands more tax errors found

Tarasam

skituscanycom wrote: »

HMRC told me that their computer system refuses to allow them to designate my employment as my primary income. It has to be the pension.

I couldn’t believe that this could be the case so the HMRC lady tried it whilst I was on the 'phone and sure enough, the system swapped it back again :doh:Sack the IT system designer I say :wave:

I'm hiding behind a cushion as I state this, BUT the above IS NOT true, I've done it recently for numerous employed pensioners.

chrismac1

HMRC's view is that they cannot afford to spend the cash on proper systems testing - uncluding user acceptance testing - on systems changes. In my view, they cannot afford NOT to do proper systems testing. And if that means that major Government initiatives - like introducing tax credits at 200 miles per hour - cannot take place, so be it.

System

skituscanycom wrote: »

...

In my case they have now actually admitted that their system CANNOT allocate the tax codes in a way that will EVER work _pale_

HMRC told me that their computer system refuses to allow them to designate my employment as my primary income. It has to be the pension.

I couldn’t believe that this could be the case so the HMRC lady tried it whilst I was on the 'phone and sure enough, the system swapped it back again :doh:Sack the IT system designer I say :wave:

This seems to be another case of lack of training for the HMRC staff. This particular "HMRC lady" obviously did not know how to setup your tax records so that your employment salary had the appropriate tax code applied, if you had been fortunate enough to be speaking to a more experienced member of HMRC staff, then it may have been done correctly, I would keep phoning until you find someone at HMRC who can set it up correctly.

jessica-jane

I am entitled to 3 grand rebate as my tax has been wrong since 05/06 and is still wrong so will be more due next tax year.started off slightly wrong. Unfortunately for last 2 years have been on BR rate am trying to correct it with personnel. Tax office sent letter to my parents address which I left in 2002 luckily they haven't moved.

Surely they should have correct address

jennifernil

Only if you wrote to them and told them you had moved out in 2002.

RacyRed

kellyshay wrote: »

I'm hiding behind a cushion as I state this, BUT the above IS NOT true, I've done it recently for numerous employed pensioners.

I completely agree with this.

Taxpayers have a legal right to have their allowances applied to their income in the manner most convenient to them, especially if this means that PAYE gets correctly deducted and an additional annual tax bil is avoided. The system can be adjusted to make employment, not pensions, the main income source.

For those finding themselves with additional tax bills, ask HMRC to collect it via your PAYE code numbers over a number of years. They may may try to refuse if the amount owed is more than £1,000, but insist on it. kellyshay maybe able to tell us more about this, if willing?

If you find yourself being denied, ask to speak to a supervisor, then take it up the line from there.

Mikeyorks

RacyRed wrote: »

They may may try to refuse if the amount owed is more than £1,000, but insist on it.

It's £2000. And HMRC will code that out over 2 to 3 years if necessary.

They're very open about it. This (6th para) has been on their Homepage for months :-

http://www.hmrc.gov.uk/p800/paye-tax-calcs.htm

Most people simply can't be bothered to look for it. Which is symptomatic of the large number of underpayments / overpayments coming to light.

Tax in the round is complex. But for most individual's circumstances .... it's fairly straightforward. In particular given the amount of info available at the movement of a mouse.

RacyRed

Mikeyorks wrote: »

It's £2000. And HMRC will code that out over 2 to 3 years if necessary. Quite correct, but too many HMRC call centre staff remain unaware of this and still try to apply the old £1,000 limit. It was in this context that I mentioned £1,000.

They're very open about it. This (6th para) has been on their Homepage for months :-

http://www.hmrc.gov.uk/p800/paye-tax-calcs.htm

Most people simply can't be bothered to look for it. Which is symptomatic of the large number of underpayments / overpayments coming to light.

Tax in the round is complex. But for most individual's circumstances .... it's fairly straightforward. In particular given the amount of info available at the movement of a mouse.

In fairness, the taxation of combined pensions and employment income can be a bit daunting for the average person.

Mikeyorks

RacyRed wrote: »

too many HMRC call centre staff remain unaware of this and still try to apply the old £1,000 limit. It was in this context that I mentioned £1,000.

I didn't think any HMRC call-centre staff went back that far! I can barely remember it.

In fairness, the taxation of combined pensions and employment income can be a bit daunting for the average person.

It appears that way. But I can't comprehend it as it's really just a bit of added income ... the rules don't change?

But it does need a bit of caffeine to settle down to age related allowances which are subject to the clawback rules - where income exceeds £22900? And the 10% Savings income rules.

Hopefully at least the first one is on the way out if the universal PA of £10k+ is reached

John_Pierpoint

My late relative's income tax was in a real mess because someone had tried to code out his arrears, giving him a "K" code (Negative allowance)
However as his total PAYE income was only a bit over 1000 a year he proceeded to get deeper into debt.