Tax Code for 2020/21

coachman12

Has everybody else yet had a letter from HMRC to give them their tax code for the forthcoming tax year, which is 7 or 8 weeks away. Do they not know that there is a Budget on 11th March which will undoubtedly make a nonsense of the code that HMRC are sending now. For example, if my personal allowance does not remain at £12,500 after the budget ( almost unbelievable ), then the tax code I have been sent is rubbish.
And yet, knowing all this because HMRC are ermmm "close" to The Treasury and , indeed, is responsible to the Chancellor via the Financial Secretary To The Treasury, HMRC is currently sending out half of the Brazilian rain forest to the entire tax-paying population which is a farce. It's always the same with HMRC -----they are dogmatic and steeped in immutable internal rules which cannot be broken but they never answer telephone calls, can never help sort out any problems and cause grief and annoyance to most of their "contributors". 
I wonder if an MSE mathematical genius could work out how much of OUR money is being wasted by the dispatch of the current letters using broad formulae based on all the items that go into the exercise , from buying paper and envelopes all the way to postage and the stages in between, including staff salaries ??  Enough to cover the GDP of a small 3rd World country perhaps ?  

comeandgo

It was announced at last budget that tax allowances would stay the same for this coming tax year but new staff in government so who knows.

Dazed_and_C0nfused

Where the budget is close to the end of the tax year HMRC have a different process.

Tax codes are issued as normal based on the facts known at that time and then in the the spring after the budget they will update the tax codes as required and issue revised coding notices for a few cases and send employers a notification on how to update the majority. 

For example if the Personal Allowance increased to £12,700 then most people wouldn't be sent a new tax code but the employer would be sent a notice advising them to update all L suffix tax codes by 20 i.e 1250L becomes 1270L (where a separate notification hadn't been received).

This isn't necessary when the budget is in the Autumn, which it has been in recent years.

BoGoF

Bit of an ill informed rant there OP. As has been said the last budget froze the personal allowance. (I admit it may change given what has happened since). Plus 'the entire taxpaying population' is not sent a tax code annually. In over 30 years of work I have been sent one. 

molerat

Checked on my tax account and my new code is showing.  And, surprise surprise, I am estimated to underpay tax this year and an adjustment has been made for this. It is around the amount I unsuccessfully argued with them earlier in the year that I would be underpaying with this years' code.  !!!!!! ups and breweries springs to mind !

badmemory

molerat said:

Checked on my tax account and my new code is showing.  And, surprise surprise, I am estimated to underpay tax this year and an adjustment has been made for this. It is around the amount I unsuccessfully argued with them earlier in the year that I would be underpaying with this years' code.  !!!!!! ups and breweries springs to mind !

Oh I am so shocked!  Well if you've read any of my postings recently you'll know that isn't true.  I'm so fed up with being told I am wrong that I have given up even trying.  I always used to think pay unto Caesar that which is Caesar's.  Now - I'll cough up when I have to.  As in pay tax due in Mar 2019 now hopefully by end Jan 2022.  You never know, next time I tell them they are wrong they may believe me, but I doubt it.  So £1k for a year, £2k for a year & £3k for 10 months.  I do wish that interest rates were a lot better though!

coachman12

BoGoF said:

Bit of an ill informed rant there OP. As has been said the last budget froze the personal allowance. (I admit it may change given what has happened since). Plus 'the entire taxpaying population' is not sent a tax code annually. In over 30 years of work I have been sent one. 

So smart and smug----must be nice. We'll see whether the present paper chase has been a waste or not. As for "entire tax-paying population", look up the word hyperbole................
But thank you for your kindness

molerat

On the plus side they have given all MrsM's allowance to HL so that is her £2880 organised for July

I suspect sending out the notifications now and making any budget changes via RT at the push of a button is a lot easier than holding out and trying to get everything done between Mar 11 (which is rumoured may slip) and Apr 5.

badmemory

Well many years ago, before real time, they sent the codes out & then had to send new ones out, I believe it was early May.  I don't remember it even causing a ripple.  But then as the job was still manual you needed the odd brain cell to do it!