Splitting the tax code

Albermarle

SouthCoastBoy said:

badmemory said:

You need to watch what income the K code is set against.  It is a funny animal.  If it is set against a small income then the tax it can take is also small.  If the income it is on is only £100 then the max tax they can take (which is half) is £50.  If the income is £1000 then the max is £500.  It may not be that much but you can use that to check if that would be around the right deduction.  For example I had a rather large K code to set against an income of only £2000.  That meant the payer could only deduct £1000 which wasn't enough.  I (eventually) got a bill as expected from HMRC.

It always amuses me that just when you retire & are hoping life will get easier, HMRC seem to go out of their way to make it more difficult, which includes not allowing you to do self assessment.  The new simple assessment which they do themselves is a misnomer, I'm just looking forward to receiving one which is correct.

I wasn't aware HMRC don't let you do a self assessment once you are retired?

I think maybe it is not directly related to being retired, but that in general HMRC are reducing the number of self assessments, and encouraging people to use their personal tax online account.,
After many years of doing self assessment , I was informed two years ago to stop, even though nothing in my circumstances changed ( not retired ) It is not good as I still have no details of my tax calculation for 19/20 . 

SouthCoastBoy

No, I would prefer to do a self assessment. I assume they can ask but not demand you stop doing self assessment returns.

Albermarle

 sSouthCoastBoy said:

No, I would prefer to do a self assessment. I assume they can ask but not demand you stop doing self assessment returns.

I prefer it as well, so I have tried but it just blocked me .

Dazed_and_C0nfused

Albermarle said:

SouthCoastBoy said:

badmemory said:

You need to watch what income the K code is set against.  It is a funny animal.  If it is set against a small income then the tax it can take is also small.  If the income it is on is only £100 then the max tax they can take (which is half) is £50.  If the income is £1000 then the max is £500.  It may not be that much but you can use that to check if that would be around the right deduction.  For example I had a rather large K code to set against an income of only £2000.  That meant the payer could only deduct £1000 which wasn't enough.  I (eventually) got a bill as expected from HMRC.

It always amuses me that just when you retire & are hoping life will get easier, HMRC seem to go out of their way to make it more difficult, which includes not allowing you to do self assessment.  The new simple assessment which they do themselves is a misnomer, I'm just looking forward to receiving one which is correct.

I wasn't aware HMRC don't let you do a self assessment once you are retired?

I think maybe it is not directly related to being retired, but that in general HMRC are reducing the number of self assessments, and encouraging people to use their personal tax online account.,
After many years of doing self assessment , I was informed two years ago to stop, even though nothing in my circumstances changed ( not retired ) It is not good as I still have no details of my tax calculation for 19/20 . 

Have you checked your Personal Tax Account?

That will show if that tax year has been reviewed yet or not.

badmemory

I too would prefer to do self assessment but I was told that even if I did they would ignore it.  So they have to put up with me ringing up, usually in quite a bad mood, telling them to correct what they have wrong.  I makes very little difference to my tax bill, as in pennies, BUT my big worry is that because they have the figures wrong & you are being asked to confirm & that it is your responsibility to confirm that those figures are correct.  They could come back years down the line with fines for it being incorrect.  I believe they can have 20 years.  As the figures they get from DWP are often (or usually) incorrect, as they can't tell a 52 wk year from a 53 wk one.  They may well come back to get me as last year they got my state pension short of a week.  I was in a bit af a bad mood when it landed so I shrugged & let it go, after all they are supposed to be the experts, saved myself over £50 in tax.  I expect it to come back and bite me but I will claim my age & their incompetence.