P800 underpaid £109 - should it be written off?

mikeh32

apologies if this has already been answered.

i received a p800 advising that i owe £109 for 2010/2011 tax year
i have read on multiple sites that if the ammount is under £300 it should have been written of by HMRC - does anyone know if this is true or not?

many thanks

dori2o

mikeh32 wrote: »

apologies if this has already been answered.

i received a p800 advising that i owe £109 for 2010/2011 tax year
i have read on multiple sites that if the ammount is under £300 it should have been written of by HMRC - does anyone know if this is true or not?

many thanks

Not for 10/11, the disregard for 10/11 onwards returned to £50.

the 3 years prior to 10/11 (07/08, 08/09 and 09/10) had the limit temporarily increased from £50 to £300.

jennifernil

If you are submitting returns, is there no disregard at all?

Due to lack of SA statement and payment request arriving on time, I worked out OH's new (adjusted due to currency fluctuations, he has a pension from abroad) POA for 10/11, and paid the amount by July 2011.

When the statement eventually arrived, using the correct figures from his return, mysteriously HMRC calc was 5 pence more than mine.

So now he has 5p outstanding. They will add this to his next bill.

How come people can get £50+ written off, while he has to pay every last penny, despite paying on time despite lack of statement?

Mikeyorks

There have always been anomalies on the various de-minimis levels for different taxes.

The £50 (ex £300) applies to informal PAYE statements. The zero tolerance where you self assess and therefore should be aware of the precise liability?

jennifernil

Mmmm, their calculator must be different from mine!

I think the 5p difference comes from them grossing up bank interest, and the entering of income rounded down to pounds, tax paid rounded up.......as per instructions.

One year I was 1p out, they added that onto the next year too!

Mikeyorks

jennifernil wrote: »

One year I was 1p out, they added that onto the next year too!

Indeed they do. But at least they don't send you a payslip for £0.01 these days! They did for the first few years of SA.

I remember getting my brain around the logic behind this .... once!

http://www.hmrc.gov.uk/manuals/sammanual/SAM130070.htm