investment bond - top slicing - tax due

Jeremy535897

JeffMason said:

Jeremy535897 said:

If you use HMRC's software and it throws up this underpayment, to avoid a demand for the tax you don't owe, presumably you will have to add it in the tax paid for the year section, and you will have to explain that is how you have dealt with it. Perhaps @purdeyoaten2 would comment. You need to get to the bottom of the £13.80.

HMRC approved software is here:
https://www.gov.uk/government/publications/self-assessment-commercial-software-suppliers/self-assessment-online-commercial-software-suppliers

Apologies, I'm getting a little confused now. I will have to add it to the tax paid for the year section? Add the £1356.80 they want to charge me to that section?

I don't understand the £13.80 issue, but would get refunded that if incorrect I assume?

Am I right in thinking there is little point trying any HMRC approved software, as it seems to be doing the same thing?

That was my thought, but I have never come across this problem before. Otherwise you get an incorrect bill. 

JeffMason

Jeremy535897 said:

JeffMason said:

Jeremy535897 said:

If you use HMRC's software and it throws up this underpayment, to avoid a demand for the tax you don't owe, presumably you will have to add it in the tax paid for the year section, and you will have to explain that is how you have dealt with it. Perhaps @purdeyoaten2 would comment. You need to get to the bottom of the £13.80.

HMRC approved software is here:
https://www.gov.uk/government/publications/self-assessment-commercial-software-suppliers/self-assessment-online-commercial-software-suppliers

Apologies, I'm getting a little confused now. I will have to add it to the tax paid for the year section? Add the £1356.80 they want to charge me to that section?

I don't understand the £13.80 issue, but would get refunded that if incorrect I assume?

Am I right in thinking there is little point trying any HMRC approved software, as it seems to be doing the same thing?

That was my thought, but I have never come across this problem before. Otherwise you get an incorrect bill. 

I'll wait and see if I get a response from HMRC on their forum, but that might be the best idea. I just need to make sure I'm reducing the correct amount. My WFH expenses have now made the total a little less for example.

And now I've had a look at the flat rate expenses thing, and I wonder if I can claim for that also. The HMRC site mentions "repairing and replacing small tools" and with my work I use my own laptop to teach lectures from, and need to buy adaptors to connect it to various different projectors and TVs on campus, depending on what room I am scheduled to teach in. My employer doesn't pay for any of this at all. Could that count here?

[Deleted User]

JeffMason said:

Jeremy535897 said:

JeffMason said:

Jeremy535897 said:

If you use HMRC's software and it throws up this underpayment, to avoid a demand for the tax you don't owe, presumably you will have to add it in the tax paid for the year section, and you will have to explain that is how you have dealt with it. Perhaps @purdeyoaten2 would comment. You need to get to the bottom of the £13.80.

HMRC approved software is here:
https://www.gov.uk/government/publications/self-assessment-commercial-software-suppliers/self-assessment-online-commercial-software-suppliers

Apologies, I'm getting a little confused now. I will have to add it to the tax paid for the year section? Add the £1356.80 they want to charge me to that section?

I don't understand the £13.80 issue, but would get refunded that if incorrect I assume?

Am I right in thinking there is little point trying any HMRC approved software, as it seems to be doing the same thing?

That was my thought, but I have never come across this problem before. Otherwise you get an incorrect bill. 

I'll wait and see if I get a response from HMRC on their forum, but that might be the best idea. I just need to make I'm reducing the correct amount. My WFH expenses have now made the total a little less for example.

And now I've had a look at the flat rate expenses thing, and I wonder if I can claim for that also. The HMRC site mentions "repairing and replacing small tools" and with my work I use my own laptop to teach lectures from, and need to buy adaptors to connect it to various different projectors and TVs on campus, depending on what room I am scheduled to teach in. My employer doesn't pay for any of this at all. Could that count here?

The point is that you have been granted this relief anyway by HMRC in your code number (60?) so not claiming it would increase your liability by £12 (60 @20%).

Good luck in resolving the main issue with HMRC forum says one doubtfully. 🤔It’s a specialist area which may well up in the ‘too hard’ box for a while!

JeffMason

[Deleted User] said:

JeffMason said:

Jeremy535897 said:

JeffMason said:

Jeremy535897 said:

If you use HMRC's software and it throws up this underpayment, to avoid a demand for the tax you don't owe, presumably you will have to add it in the tax paid for the year section, and you will have to explain that is how you have dealt with it. Perhaps @purdeyoaten2 would comment. You need to get to the bottom of the £13.80.

HMRC approved software is here:
https://www.gov.uk/government/publications/self-assessment-commercial-software-suppliers/self-assessment-online-commercial-software-suppliers

Apologies, I'm getting a little confused now. I will have to add it to the tax paid for the year section? Add the £1356.80 they want to charge me to that section?

I don't understand the £13.80 issue, but would get refunded that if incorrect I assume?

Am I right in thinking there is little point trying any HMRC approved software, as it seems to be doing the same thing?

That was my thought, but I have never come across this problem before. Otherwise you get an incorrect bill. 

I'll wait and see if I get a response from HMRC on their forum, but that might be the best idea. I just need to make I'm reducing the correct amount. My WFH expenses have now made the total a little less for example.

And now I've had a look at the flat rate expenses thing, and I wonder if I can claim for that also. The HMRC site mentions "repairing and replacing small tools" and with my work I use my own laptop to teach lectures from, and need to buy adaptors to connect it to various different projectors and TVs on campus, depending on what room I am scheduled to teach in. My employer doesn't pay for any of this at all. Could that count here?

The point is that you have been granted this relief anyway by HMRC in your code number (60?) so not claiming it would increase your liability by £12 (60 @20%).

Good luck in resolving the main issue with HMRC forum says one doubtfully. 🤔It’s a specialist area which may well up in the ‘too hard’ box for a while!

Ah. OK, so I should definitely claim it then!

And yes, it was painful asking them about where to put the gain in the first place, which was a much easier question, so I'm not holding my breath! But they were more helpful than 'live chat' - who told me straight away that they didn't have the training to answer any of my questions!

JeffMason

Hi All,

I've not heard anything from the HMRC forum yet, and am planning on taking your advice and the total they claim I owe to the tax paid for the year section, and then explain it in the further information (and with a PDF letter - which can also be added).

There seems to be an extension beyond 31st Jan for submitting though, now until the end of Feb - do you think holding out a few days beyond tomorrow would be a good idea? Or is there something I am missing and I might get penalised in some way?

Thanka again!

[Deleted User]

Can’t see any benefit in delaying at all!

Jeremy535897

The deadline has not been extended, but the penalties for late filing that would otherwise have happened do not apply if the return is submitted by 28 February. I cannot now recall whether you owe any tax even leaving out the HMRC error. If you do, that should be paid by 31 January.

If you delay submitting the return until February, you extend HMRC's window for enquiring into the return from 12 months after you submit the return (say 31 January 2023) to 30 April 2023, not a good idea in your circumstances. (HMRC have many other ways to reopen your tax affairs, but if you make full disclosure, this will be much harder for them if they are outside the enquiry window.)

JeffMason

[Deleted User] said:

Can’t see any benefit in delaying at all!

The only benefit would be it gives me some more time to try and figure out the best way to deal with it, hopefully via a response from HMRC. 

JeffMason

Jeremy535897 said:

The deadline has not been extended, but the penalties for late filing that would otherwise have happened do not apply if the return is submitted by 28 February. I cannot now recall whether you owe any tax even leaving out the HMRC error. If you do, that should be paid by 31 January.

If you delay submitting the return until February, you extend HMRC's window for enquiring into the return from 12 months after you submit the return (say 31 January 2023) to 30 April 2023, not a good idea in your circumstances. (HMRC have many other ways to reopen your tax affairs, but if you make full disclosure, this will be much harder for them if they are outside the enquiry window.)

That all sounds terrifying. And like my best bet is to what was suggested earlier. 

I don’t owe any other tax at all. The only reason to do this return is because of the chargeable event. 

The return is complete apart from mentioning the tax already paid, and I can get it submitted tomorrow night after work. 

JeffMason

Hi All,

Hopefully my last question - Where is the "tax paid for the year section" that I need to add this to? I've scanned through the HMRC online self assessment form but can't find it. Can someone talk me through where it is?

Other than that, I've uploaded all the relevant details as a PDF and written into the additional information box. Hopefully this is enough for them to understand the issue and what I have done to rectify it.