Self Assessment Question!

mrsnow101

Hi,

Hopeful for some guidance - PAYE all of my life and new to this!

I need to repay some child benefit claimed by my wife from a few years ago - BIK taking me over the 50k threshold (i'm not grumbling - it is what it - i'll pay what I owe).

I have completed the online form as best as I can - yet HMRC suggest I owe way more than I think I do!

I have gone through my P800s, P11Ds & P60's with a fine tooth comb - the only thing I think it can be is an 'Other Adjustment' credit of approx £800 on my P800 (ie HMRC owe me!). I havent declared this any where on the self assessment form... should I?! (the figure HMRC say I owe is approximately this amount above what I think it should be).

Any idea where I would add this (if I should)?!?

Thanks.

dori2o

Is the P800 for the same year as the tax return you are completing?

Can you provide the figures for that year, including the 'other Adjustment' and any tax refunded on the P800 assuming its for the same tax year.

mrsnow101

Thanks for the reply.

I think I may have sussed it out (although it is very confusing - I have multiple P800's issued, the most recent issued a full 18 months after the end of the tax year).

The BIK calculation on the P800 is incorrect. I moved house in that tax year (I benefit from a staff loan), and the BIK on the P800 only includes the beneficial loan amount from the first half of the year.

I have two P11d's for that tax year as well- however both of them clearly state the correct beneficial loan amounts (there is a section on the p11d that allows you to split out multiple loans - i guess for scenarios like a house move).

When filling out the self assessment form - I am keying in the beneficial loan amount from the P11d, so the final amount owed is approx £700 (which I agree i owe for the child benefit repayment), +approx £900 underpaid tax because of the absence of all of the beneficial loan in the original tax calc.

Does this make sense?! I had to order copies of all of my tax documents, as HMRC were sending them all to my previous address. Its been a nightmare trying to work through them all.

A separate question; should I be liable for HMRC's mistake? My employer has provided them with the correct information - they just havent applied it correctly.

This thread implies i may be able to claim for it to be written off:

https://forums.moneysavingexpert.com/discussion/3277888

dori2o

You are responsible for checking your tax code, and that the relevant BIK in that code are correct and up to date.

HMRC do not get informed of changes to beneficial loans by the employer as and when they occur, only at the end of the tax year. Therefore if the value of your loan changes the earliest HMRC will know is when they get your P11d.

You have not underpaid tax because the P800 is wrong, its because not enough tax was deducted during the tax year the tax return is for.

Again, each individual is responsible for checking that their tax code is accurate, and if they believe its wrong should tell HMRC and ask for it to be changed/reviewed.

ESCA19 would only apply if HMRC had failed to amend your code in a timely manner.

In order that it can be ascertained whether ESCA19 might be applicable it needs to concluded whether HMRC knew about the information.

Which year is the self assessment for?

When did you move house?

Did the change of property lead to a change (increase) in the beneficial loan?

mrsnow101

dori2o wrote: »

You are responsible for checking your tax code, and that the relevant BIK in that code are correct and up to date.

HMRC do not get informed of changes to beneficial loans by the employer as and when they occur, only at the end of the tax year. Therefore if the value of your loan changes the earliest HMRC will know is when they get your P11d.

You have not underpaid tax because the P800 is wrong, its because not enough tax was deducted during the tax year the tax return is for.

Again, each individual is responsible for checking that their tax code is accurate, and if they believe its wrong should tell HMRC and ask for it to be changed/reviewed.

ESCA19 would only apply if HMRC had failed to amend your code in a timely manner.

In order that it can be ascertained whether ESCA19 might be applicable it needs to concluded whether HMRC knew about the information.

Which year is the self assessment for?

When did you move house?

Did the change of property lead to a change (increase) in the beneficial loan?

Hi - thanks for the reply, and apologies for the delayed response.

This is for tax year 2014-2015.

We moved house at the end of May/beginning of June, which would have seen a total increase in the beneficial loan across the whole year of approx. £1500.

Did HMRC know about the information? I think they must have.
My tax calc only includes the cash equiv amount for the first two months of the tax year (prior to the move) - which implies a coding amendment was made without taking into consideration the new mortgage.

It was a straightforward house move as well- no lag between selling old house and buying new one.