MSE News: HMRC admits calculations may be wrong for some who over or underpaid tax

If you're one of five million people who overpaid or underpaid 2013/14 tax, you could have paid the wrong amount
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HMRC admits calculations may be wrong for some who over or underpaid tax


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  • patanne
    patanne Posts: 1,286 Forumite
    Is this a repeat of the Asda tax problem. Paid weekly or 4 weekly with 54 or 14 payment periods falling within one year. Causing an overpayment or just their new RTI system not fit for purpose. Or is it all employers & companies who do other peoples wages need to change their software to suit HMRC. If it is the 4 weekly paid problem, I will repeat here what I have said before, it is a very simple software change that is needed, but hey why bother when you can leave it to someone else to sort out.
  • minislim
    minislim Posts: 357 Forumite
    First Anniversary Combo Breaker First Post
    edited 10 October 2014 at 3:56PM
    "the fault lies largely with employers. An HMRC spokesperson says"

    thats funny. my wife who's an accountant has been telling me for months that the Real time system for tax is next to useless and is to blame for this mess.

    yet at the source HMRC say otherwise.

    hmmmm? i wonder who's right?
  • luvsnail
    luvsnail Posts: 27 Forumite
    When I received my Tax Calculation I realised straight away that it didn't tally with my P60. When I phoned HMRC to query it, I was kept on hold for 45 minutes, before being told that the Calculation I'd received was "probably right" and I should just cash the rebate cheque... :huh:
  • Pennywise
    Pennywise Posts: 13,468 Forumite
    Name Dropper First Post First Anniversary
    Yes HMRC probably have made mistakes but it's the employer that's reporting the pay/tax. They are also making mistakes. It's bound to happen with any new process/system.

    Don't believe everything that HMRC says. I've had a few cases with clients for whom the payroll submissions were correct and made on time and for which I have the HMRC submission receipts. HMRC are saying that "some" employers sent in submissions for the first 11 months but didn't send them in for month 12. Why would any employer do this, let alone many of them? The fact is that there was a problem at the HMRC end which seemed to ignore/not process the final returns - I've had that confirmed by HMRC staff a few weeks/months ago when this problem was first noticed by accountants. There have been various online comments by accountants and payroll providers over the past few months about the year end processing problems at HMRC. I don't doubt that "some" employers may not have made the right submissions, but I strongly suspect that the main reasons for the problems is with HMRC.
  • Pennywise
    Pennywise Posts: 13,468 Forumite
    Name Dropper First Post First Anniversary
    From what I have read and from discussion I have had, the issue wasn't that month 12 submissions weren't sent, it was that these were not confirmed as the final submissions for the tax year.

    No, that's not the problem I've come across.

    Anyway, the two payroll softwares we use (the two leading ones) send the "last" submission indicator automatically with the month 12 or week 52/53 payroll data, so it's not something an employer could "forget" to do - they wouldn't even need to think about it as it's done automatically. Perhaps it relates to a different payroll software?

    The problem is that HMRC P800s are only taking info from the submissions up to the penultimate submission - they're ignoring the final submission, even when it's made on time. That sounds a programming error at HMRC's end. There must be a glitch in their software to ignore that final submission in some circumstances.

    Suffice to say, that in the cases I've dealt with, it's not been the employer to blame in any way - as I say, I have submission confirmations/receipts to prove it and the P800s simply don't tally with the submissions made.
  • Shambler
    Shambler Posts: 767 Forumite
    I've no idea whether my tax payments are correct or not. I'm paying back an underpayment then I get another form to say I have another amount of underpayment to pay back but it also says I might already be paying back some of this new underpayment with my current payments...hell knows what I should be paying...if HMRC can't work it out I don't know how I am meant to! ^^
  • janiebquick
    I've a question about this that I can't seem to find the right place to ask

    My question is this: I paid too much tax last year. I haven't yet had a P800, though. Should I have had one by now?
    'Never argue with an idiot. They will only bring you down to their level and beat you with experience.' George Carlin
  • chrismac1
    chrismac1 Posts: 2,585 Forumite
    It's a shambles. I refer everyone to posts I have made going back well over a year predicting this, even when HMRC and its shills on here were saying RTI was a "great success". Features in my own client base include:

    1. Tax codes bringing in benefits from jobs from tax year 12/13.
    2. Statements and demands where payments made by the employer had been totally omitted.
    3. Claims that information had not been submitted which were refuted by the simple fact that the HMRC database had issued a "Successfully submitted" date and time stamp.

    The list is utterly endless. The UK tax system has never been more of a mess in my time dealing with it, which started in 1990. DO NOT TRUST a single word they say on the phone or in letter unless backed up by other evidence.

    So far EVERY error has been an HMRC error, not one has been down to the employer, within my own client base many of whom do their own submissions.
    Hideous Muddles from Right Charlies
  • MercilessKiller
    MercilessKiller Posts: 7,143 Forumite
    First Post First Anniversary Combo Breaker
    edited 23 March 2015 at 8:49PM
    Bringing up an old topic, I have JUST been notified of been underpaid tax in the year 2013/2014 by £420. I'm completely confused as nothing strange happened during the tax year and this is the first I'm hearing about it with a notice that it will be deducted from my future wages...

    I take it there's nothing I can do about it, but should I be complaining to HMRC? It's a joke that I do my job, earn my wage, and they come back years later and want to withdraw more tax!

    If this happened, I'm worried it was my terrible employer doing something wrong!
    [FONT=Arial, Helvetica, sans-serif]"The internet is a great way to get on the net."
    - Bob Dole, Republican presidential candidate
  • quietriot
    quietriot Posts: 179 Forumite
    Check the figures they've based their calculations on are correct. If they are, congratulations on your interest-free loan, now pay the tax.
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