Taxable earnings declared in wrong tax year (Asda)

jem16

squidgysponge wrote: »

Just a quick update. My 3rd attempt at raising this as a complaint against HMRC has just been posted. Hopefully this time an adjudicator can look into why this was allowed to happen.

It's not surprising your previous 2 complaints have been turned down.

Asda has done nothing wrong, apart from not informing you that it was going to happen.

HMRC has done nothing wrong so how do you think they "allowed" it?

You had too much tax-free allowance and you owe tax. It's really that simple.

patanne

Does HMRC still have to approve any commercial payroll software used by companies?

dori2o

squidgysponge wrote: »

Just a quick update. My 3rd attempt at raising this as a complaint against HMRC has just been posted. Hopefully this time an adjudicator can look into why this was allowed to happen.

Obviously HMRC offered incredibly bad guidance on this matter, which was confounded further by Asda not notifying colleagues when they were well aware it was going to happen.

My personal take on it is Asda were aware it would wipe out approximately the bonus payment from all colleagues for last year and decided to keep quiet and let HMRC take the blame by sending out underpayment demands.

I can't believe you have wasted all this time on this matter. It is an anomoly which has been around for as long as PAYE has been operated. It is not some kind of conspiracy. Neither HMRC nor ASDA have done anything wrong.

The adjudicator can only rule against HMRC if they have failed to follow their own regulations. I can assure you that in the instance of week 53, week54 and week 56 payments, they have not. Neither should they seek the underpayment be recovered by the employer under regulation 72 as your employer has not broken any regulations, they have operated PAYE as instructed.

Why not, for your next time wasting exercise, try and sue Julius Ceasar, or Pope Gregory xiii whom created the calendar as we know it today. After all it is because the calendar does not fit equallly into 7 day weeks that this anomoly arises.

It happens because there are not exactly 52 weeks in a year, or exatlly 26 2 week periods in a year, or exactly 13 4 week periods in a year, in each one there is an extra day remaining, this causes the anomoly in payrol systems, and creates this overpayment position.

There is nothing you, I or anyone else can do about it, it is just something that happens, and it will happen again for those paid on a Friday, in 22 years time for those paid on a 4 weekly rota, in 11 years time for those paid 2 weekly, and in 6 years time for those paid weekly.

zygurat789

dori2o wrote: »

I can't believe you have wasted all this time on this matter. It is an anomoly which has been around for as long as PAYE has been operated. It is not some kind of conspiracy. Neither HMRC nor ASDA have done anything wrong.

The adjudicator can only rule against HMRC if they have failed to follow their own regulations. I can assure you that in the instance of week 53, week54 and week 56 payments, they have not. Neither should they seek the underpayment be recovered by the employer under regulation 72 as your employer has not broken any regulations, they have operated PAYE as instructed.

Why not, for your next time wasting exercise, try and sue Julius Ceasar, or Pope Gregory xiii whom created the calendar as we know it today. After all it is because the calendar does not fit equallly into 7 day weeks that this anomoly arises.

It happens because there are not exactly 52 weeks in a year, or exatlly 26 2 week periods in a year, or exactly 13 4 week periods in a year, in each one there is an extra day remaining, this causes the anomoly in payrol systems, and creates this overpayment position.

There is nothing you, I or anyone else can do about it, it is just something that happens, and it will happen again for those paid on a Friday, in 22 years time for those paid on a 4 weekly rota, in 11 years time for those paid 2 weekly, and in 6 years time for those paid weekly.

What the OP really need to do is to change the length of time the earth takes to go around the sun. Then I'll be impressed

squidgysponge

Just an update. This is still an ongoing dispute with HMRC. I have also applied through a freedom of information request to find out how many people were affected by this bad guidance. Unfortunately HMRC don't know how many people owe them money and it would cost them too much to reply to my request. Speaks volumes don't it!

zygurat789

squidgysponge wrote: »

Just an update. This is still an ongoing dispute with HMRC. I have also applied through a freedom of information request to find out how many people were affected by this bad guidance. Unfortunately HMRC don't know how many people owe them money and it would cost them too much to reply to my request. Speaks volumes don't it!

Prior to 1948 and the introduction of PAYE you would have had to pay ALL your tax after the end of the tax year. PAYE was introduced so that the government would get their taxes in sooner. The code number is an estimate of the tax free income you have and it is given to you piecemeal over the year. You had yours too early so, in actual fact, you benefitted by getting your money before you should have done and of course you had to pay it back again.