HMRC SA Statement of Account

Legacy_user

Does anyone else find these statements confusing ?

It seems to me that HMRC use a !!!!!!!ized "Double Entry bookkeeping" format when they produce these statements (Both on the printed statement and the HMRC online system). Not many tax payers would normally come across double entry bookkeeping in their normal lives, so why do HMRC use such a poor method of giving us this information ?

Does anyone know if HMRC are thinking about improving the format of these statements to make them clear and understandable ? I wish HMRC would use a format similar to an ordinary bank statement, since most people will be familiar with that format.

The energy supply industry have changed the format of their bills so that customers can understand them, why do HMRC think they are allowed to give us important information in such a poor format ?

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Some further background info to show why I think the above :

On the last few statements I have received, HMRC seem to have fiddled the numbers by including an entry that says : "Net adjustment from SA return" with it's value being set so that the balance in the "Summary" column equals 0.00
There is no information included to explain where the adjustment came from or how it was derived, so it does simply look like a fiddle to try to make their figures add up to zero.
In my case the fiddle looks more obvious since I know HMRC have carried forward an incorrect "Balancing payment due" from a previous tax year, and then they have "Adjusted" the following values to make the account balance. I am currently awaiting a reply to my third letter of complaint on this subject. When I phone, the tax adviser can see the complaint handler's error but each subsequent tax complaint handler seems to make the same mistake. If this last letter of complaint fails to resolve the mistake, then I will be escalating to the adjudication process.

System

After a little research on the HMRC site, I found that HMRC are aware (after a customer survey carried out in 2007) that the SA Statements need to be changed to make the information clearer.

Apparently, there are currently two main SA statement formats:
1) Open Item format - this is the type of statement I received
2) Simple format - which seems to be the latest type

With the "Open Item" format of statement, each event has it's own entry on the statement together with transactions that apply to that particular event. This format seems to work Okay when everything takes place smoothly, but when errors are made and then corrections applied, that seems to be when things get complicated and the statements become unintelligable (in my opinion)

Anyway, I seem to have answered my own main questions

chrismac1

I could not agree more. Where they get their programmers from is a complete mystery to me. In particular even the most basic and cheap of User Acceptance Testing before going live with important documents would avoid so much confusion and in turn save HMRC so much money in time wasted on helplines and by letter.

The statements are fine when all is smooth. The moment that stops happening HMRC fill the screen with corrections, adjusments (often just plain wrong) and so on....

jennifernil

I agree, I nearly had to go and lie down in a darkened room after trying to understand the statement OH got in January, and I am good with figures! My mum was a book-keeper, and I do the books for our local Guide Hall.

Luckily I can work out his tax, so KNOW how much he is due to pay. As long as their final figure agrees with mine I am satisfied.

meldrewoflewes

The way HMRC presents accounts is specifically designed to confuse all users.
I recently made a payment for 31/7/2011 as requested for this mind boggling payments on accounts system only to find that it is now showing as an overpayment.
Missing from all this is the actual tax I owe for 2010/11, so if I don't keep a check on this, I will be due for a penalty in January 2012.
Having already had a penalty for failing to pay on account before (an oversight), which was cancelled after I spotted a calculation error on their part, I try to follow the rules, but this set-up must be the worst bit of rubbish going.
Surely they could tell you in simple terms what you owe at any point in time and when it is due.
If you think Self Assessment is bad, try getting your head around the 10% starting rate for savings, or for a really bad day, try Capital Gains.
What worries me is that the way things are going, on-line tax affairs are going to be the only option available, so God help the poor sods who have trouble changing TV channels.
HMRC sucks

John_Pierpoint

........... and make sure you don't die before sorting out the muddle.
Presented with a Mr Dog of a breakfast already on the self assessment statement and the "K" code PAYE notice of coding - there was no attempt to sort out the mess by HMRC - one for the "too difficult pile" I think.
However, the computerised system crashed on in over drive issuing threats and penalties against an income that was self evidently no longer that of the deceased. The only way I could shut it up was to feed the beast - it was either that or spend another morning entering a notice of appeal.

Eventually I managed to find intelligent life on the phone (it took 3 days):
"Its gone to archive"
!!!!
"Oh I see - I suppose you will be wanting repayment of these payments on account."

Executors Tip:
Death won't release you from the Self Assessment system.
Ignore the old fashioned final simple tax return form they send.
Insist on doing a couple of year's full SA returns (and you won't be allowed on-line)