About "Personal Allowance" on P800 (section 8)

leaphtc

Hi,

I recently received a P800 regarding an underpayment of tax (£68) in relation to tax year 2011-2012.

I work for the NHS. My tax coding notice, pay slips for the year and P60 state 774L instead of 747L. This is due to (expenses deductions: laundering uniforms)

So far so good. I've checked and double checked my PAYE Income and Tax Paid for the tax year 2011-12 and both match HMRC calculation.

The part that I don't understand is that HMRC is using 747 (£7,475) as my personal allowance (P800 section 8) to calculate my income tax chargeable amount at basic rate of 20%.

Is this correct? Shouldn't it be 774L (around £7,740) instead?

Cheers.

jem16

leaphtc wrote: »

Is this correct? Shouldn't it be 774L (around £7,740) instead?

Yes it's correct. The personal allowance will always be the standard personal allowance. All other allowances will be accounted for elsewhere in the calculation.

back_against_the_wall

Actually I am appalled that you have been sent a P800 tax calculation for an underpayment of only £68. Have HMRC nothing better to waste computer time on than to churn out tax calculations for such small amounts? When I worked for HMRC many years ago when they were called the Inland Revenue there was something called an "assessing tolerance" which meant that if an underpayment arose in a PAYE case below a certain amount it would be written off as the costs of collection were not worth the bother. For many years the "assessing tolerance" was £30 but later towards the end of my employment with HMRC (which ended, by the way, for health reasons and later because I had to look after my elderly mother, nothing of a disciplinary nature), it was raised to £100. That was over 10 years ago and now they appear to have abandoned the previous policy and are chasing every penny. How very shocking. They are acting like 3rd rate debt collection agencies who will threaten to take you to court and repossess your house for a few pennies. Regards.

Nicola_Ed

leaphtc wrote: »

Hi,

I recently received a P800 regarding an underpayment of tax (£68) in relation to tax year 2011-2012.

I work for the NHS. My tax coding notice, pay slips for the year and P60 state 774L instead of 747L. This is due to (expenses deductions: laundering uniforms)

So far so good. I've checked and double checked my PAYE Income and Tax Paid for the tax year 2011-12 and both match HMRC calculation.

The part that I don't understand is that HMRC is using 747 (£7,475) as my personal allowance (P800 section 8) to calculate my income tax chargeable amount at basic rate of 20%.

Is this correct? Shouldn't it be 774L (around £7,740) instead?

Cheers.

Hi

Your personal allowance is £7,475. You may be entitled to additional allowances but this figure will not change. The maximum allowance for NHS workers is £100 per year for cleaning uniforms. You seem to have been given extra allowances in your tax code of £265. (7,740 - 7,475). You need to check how your code of £7,740 was made up. You will have been sent a copy of the code or HMRC shoud be able to tell you)

System

back_against_the_wall wrote: »

Actually I am appalled that you have been sent a P800 tax calculation for an underpayment of only £68. Have HMRC nothing better to waste computer time on than to churn out tax calculations for such small amounts? When I worked for HMRC many years ago when they were called the Inland Revenue there was something called an "assessing tolerance" which meant that if an underpayment arose in a PAYE case below a certain amount it would be written off as the costs of collection were not worth the bother. For many years the "assessing tolerance" was £30 but later towards the end of my employment with HMRC (which ended, by the way, for health reasons and later because I had to look after my elderly mother, nothing of a disciplinary nature), it was raised to £100. That was over 10 years ago and now they appear to have abandoned the previous policy and are chasing every penny. How very shocking. They are acting like 3rd rate debt collection agencies who will threaten to take you to court and repossess your house for a few pennies. Regards.

The £100 assessing tolerance ended over 10 years ago I believe. It may be a 'small' amount but when you consider how the unit cost of P800s has tumbled since automation it's still cost effective to collect the tax

System

leaphtc wrote: »

Hi,

I recently received a P800 regarding an underpayment of tax (£68) in relation to tax year 2011-2012.

I work for the NHS. My tax coding notice, pay slips for the year and P60 state 774L instead of 747L. This is due to (expenses deductions: laundering uniforms)

So far so good. I've checked and double checked my PAYE Income and Tax Paid for the tax year 2011-12 and both match HMRC calculation.

The part that I don't understand is that HMRC is using 747 (£7,475) as my personal allowance (P800 section 8) to calculate my income tax chargeable amount at basic rate of 20%.

Is this correct? Shouldn't it be 774L (around £7,740) instead?

Cheers.

OP - did you get to the bottom of the underpayment. My first thought was the expenses might be missing from the P800 as this would result in an underpayment of around £55 based on the difference between 774L and 747L. Close but not really close enough.

Did your expenses change part-way through the year? Did you have more than one job? Or are you paid 2-weekly or 4-weekly? I can't think of anything else obvious that could have caused an underpayment

leaphtc

thanks everyone for the replies..

Nicola_Ed wrote: »

...The maximum allowance for NHS workers is £100 per year for cleaning uniforms. You seem to have been given extra allowances in your tax code of £265. (7,740 - 7,475)

I got a extra tax allowance and it was backdated few years.

ceiberman wrote: »

... Did your expenses change part-way through the year? Did you have more than one job? Or are you paid 2-weekly or 4-weekly? I can't think of anything else obvious that could have caused an underpayment

Yes, they did. Last year for about 2 months I worked for the NHS as part-time and at the same time for a private company through a employment agency (also as part-time for 6 weeks).