2010/2011 SA tax return

jayencee

Just trying to complete my tax return for the year 2010/11 but am having a problem with the following box regarding underpayment of tax for previous tax year.

It asks if I have any underpaid tax for 10/11 which is being collected through coding notice for 11/12, and indicates that the HMRC records show that this is the case, although the figure they quote is zero. I have amended this box to include the amount of tax that is being collected through my coding for 11/12.

When I view the finalised document however, it says that the figure I have entered relates to the tax year 08/09 when I didn't owe any tax, nor am I paying it back through my tax code. Not sure whether this is just a blip on the system and I should leave it as it is or whether I should take out the figure completely and hope that it all comes out in the wash?

System

jayencee wrote: »

Just trying to complete my tax return for the year 2010/11 but am having a problem with the following box regarding underpayment of tax for previous tax year.

It asks if I have any underpaid tax for 10/11 which is being collected through coding notice for 11/12, and indicates that the HMRC records show that this is the case, although the figure they quote is zero. I have amended this box to include the amount of tax that is being collected through my coding for 11/12.

When I view the finalised document however, it says that the figure I have entered relates to the tax year 08/09 when I didn't owe any tax, nor am I paying it back through my tax code. Not sure whether this is just a blip on the system and I should leave it as it is or whether I should take out the figure completely and hope that it all comes out in the wash?

For the 2010-11 tax return, there are two boxes available in the "Underpaid Tax" section of the Tax Return:
Box 7 is the one that normally has a value in it if your P2 Coding Notice for 2010-11 included an "Under Payment Restriction" to collect tax owed from a previous year. For the 2010-11 tax year, box 7 relates to :

Underpaid tax for earlier years included in your tax code
for 2010–11 – enter the amount from your PAYE Coding Notice

Note that this amount owed is usually from the last but one tax year (i.e. 2 tax years ago)

Box 8 applies to :

Underpaid tax for 2010–11 included in your tax code
for 2011–12 – enter the amount from your PAYE Coding Notice

So, this box is not normally used since it is referring to your tax code for the tax year after this tax return. If this box has a value of £0.00 by default, you would normally not change it.

Be aware, that the HMRC online SA system sometimes displays the wrong tax year dates when it shows messages, because they forgot to change the dates when they upgraded the system for the new tax year.

jayencee

But I do have tax owing from the 09/10 tax year (and nothing owing before that) which is being collected through this year's coding notice i.e. 11/12.

I had nothing included in tax codes for 10/11 only for 11/12, so still not sure which box relates to me, if any.

p-pincher

Box 7 - you put any tax that you are repaying through your 10/11 code, doesnt matter what year this arose

Box 8 - Any tax that you are repaying through your 11/12 code that is owing from 10/11 only. If you underpayment is not from the 10/11 year do not enter it as it will give you an incorrect calculation. if your not sure ring your tax figures who will check your codes for you.

System

jayencee wrote: »

But I do have tax owing from the 09/10 tax year (and nothing owing before that) which is being collected through this year's coding notice i.e. 11/12.

I had nothing included in tax codes for 10/11 only for 11/12, so still not sure which box relates to me, if any.

You are completing the tax return for the 2010-11 tax year.
If there was no underpayment restriction on your 2010-11 tax code then you do not enter any values in these two boxes (leave them as £0.00)

p-pincher

BAA1 wrote: »

You are completing the tax return for the 2010-11 tax year.
If there was no underpayment restriction on your 2010-11 tax code then you do not enter any values in these two boxes (leave them as £0.00)

Box 8 is nothing to do with if you have an underpayment being collected in 10/11. its asking if your having an underpayment collected in next years tax code (11/12) that arose in the same year that you are completing the tax return for (in this case 10/11).

System

p-pincher wrote: »

Box 8 is nothing to do with if you have an underpayment being collected in 10/11. its asking if your having an underpayment collected in next years tax code (11/12) that arose in the same year that you are completing the tax return for (in this case 10/11).

I know what the description is for box 8 - it was me that copied that info from the SA tax return to illustrate in this thread.

When asked about box 8, HMRC normally say it is not to be used in these circumstances, that is why it is set to £0.00 on the online system.

If you want to see what effect it has on the tax calculation, then put a value into box 8 and see how it screws up the calculation for 2010-11, do not submit the return until you are happy with the calculation, then come back and let us know what effect it has