Inland Revenue

blackmoon_3

I am not sure i should post this here however I apologize in advanced. My daughter has this problem with money as below

My daugther had two tax codes
for two jobs tax code 388L and 154L given by the tax office (tax year to 5 April 2005) split between the two jobs which I believed would give a combined tax code of 542

This worked out she paid too much tax and told her she should claim this back however the tax office now state the tax code should have been 474 you own us £47 and did similar for the next tax year. (Not much you may say over two years makes over £100)

My daughter went to the tax office originally to stop this from happening yet now appears to have no come back due to what I believe the tax office making the mistake. Is there any thing we can do? As my daughter; I feel is paying for their mistake as she did not hide any thing from them.

Timmne

It was their mistake but it's the Revenue - they won't back down as the calculations will clearly show that your daughter owes the money over....

Sorry it's not the answer you wanted! Get her to tell them to adjust her tax codes for this year so that her tax is paid through that, so she doesn't feel it happening! This can be done with a call I think, unless they want her to fill in a return.

JohalaReewi

The personal allowance for 2004/5 tax year was 4745 so a code of 474L would have been right. Also, because you daughter had two 'L' codes, she could possibly have too much taxed in the 10% band, some of which should have been taxed at 22%. As Timmne says, the inland revenue made a mistake but, they have spotted it and want the unpaid tax. Unfortunately, they are allowed to do this I think you can arrange to have this collected in installments via your tax code?

You can find out the personal allowances here...
http://www.hmrc.gov.uk/stats/tax_structure/table-a1a.pdf

And the tax bands and rates here...
http://www.hmrc.gov.uk/stats/tax_structure/table-a2a.pdf

blackmoon_3

The tax office looks as though they are reclaiming the tax via the tax code. This year they have tax my daughter for most of the year at the Basis rate (approx £100 a month) for salary of max £10,000 a year seems excessive. Also for the coming year has only evaluated one of her jobs for the tax code meaning more trips to the tax office.

As you say they are allowed to do this but would be nice if once in a while they would get it right (If they cant I am not sure how they expect my daughter to do so) and powerless to change their dopey approach to tax; statng my daughter owes them money as though she is in the wrong.

It just shows the rules are

1. When the tax office is right their are right
2. When the tax office is wrong then rule 1 applies

Thanks for your advice very helpful

Bean_Counter

Hi Blackmoon.

Assuming this is daughters only job and only income, she should have tax code of 503L for this year. Assuming income of £10,000, income tax for year should be about £834 for the year, or about £70 per month.

Timmne

Ha!! Bean counter - I'm one too!

Bean_Counter

Hi Timmne,

Small world! I'm new to this and this was my first post.