Chasing the reasons from 0T tax code from HMRC ... Frustrating slow

rocktron_amp

Hiya

I have been attempting to find out why my tax code was set to 0T for a couple weeks.

I phoned up the HMRC and got throught the department after an 1 hour.

Eventually, I was transferred to self assessment desk.

The Scottish lady said you could not reset the 0T for some reason. She tried on her system.

Has anyone here experienced similar set backs?

About me. I was an independent IT contractor upto until December 2019. This was the very last month that I push an invoice through my Limited company. I was VAT registered. Unfortunately, the  effect of Off Payroll Worker rules happened in early 2020, meant that I failed to find an Outside IR35 contract.

Early in 2020, I worked on a Fixed Term contract for 1 year (Inside IR35). Ergo no invoice or payment went through my Limited company.

So in tax year 2020 - 2021 I had an employee tax code of 1257L. My salary < £100K

In January 2021, I decided to close my Limited company, because of the prospects of Outside IR35 were very poor. In March 2021, I began an employee of an IT consultancy. So my tax code was stand 1257L still.

In February 2022, I received a letter that my tax code is 0T. My salary again is still less than £100K

I don't understand why I have moved to a "0T" tax code with no personal allowance in 2021 to 2022. 

I answered No to all 20 HMRC questions - kids (I don't have kids), second home, investment income, student loan, second job.

Any advice? Anyone had similar trouble with HMRC?

Dazed_and_C0nfused

Only HMRC can give a definite answer but are you saying that HMRC sent you a tax code notice amending your tax code to 0T or could it be that an employer decided to operate this tax code for some reason?

Some employers use code 0T where they (the employer) believe the new starter process hasn't been adhered to i.e. you have completed and returned the new starter declaration to them (the employer).

rocktron_amp

Dazed_and_C0nfused said:

Only HMRC can give a definite answer but are you saying that HMRC sent you a tax code notice amending your tax code to 0T or could it be that an employer decided to operate this tax code for some reason?

Some employers use code 0T where they (the employer) believe the new starter process hasn't been adhered to i.e. you have completed and returned the new starter declaration to them (the employer).

Possible in the first or second month of a new employment, but I think unlikely

When I started with my current employer 1 year ago (March 2021), I saw a temporary tax code. I had P60 late from my fixed term previous employer (fixed term contract / PAYE).

My new tax code letter was 6th February 2022 saying 0T. I am also thought it has something to do with Self Assessment Tax Return, but according HMRC's own information website, I don't have to do one for 31 January 2022, because I was employed (salary < £100K).

I guess I will keep on trying to get answer from HMRC. Making tax digital is hard and getting blody harder!

comeandgo

rocktron_amp said:

Dazed_and_C0nfused said:

Only HMRC can give a definite answer but are you saying that HMRC sent you a tax code notice amending your tax code to 0T or could it be that an employer decided to operate this tax code for some reason?

Some employers use code 0T where they (the employer) believe the new starter process hasn't been adhered to i.e. you have completed and returned the new starter declaration to them (the employer).

My new tax code letter was 6th February 2022 saying 0T. I am also thought it has something to do with Self Assessment Tax Return, but according HMRC's own information website, I don't have to do one for 31 January 2022, because I was employed (salary < £100K).

Did HMRC tell you directly that you have not to compete the self assessment?  Being employed is not a reason to stop completing self assessment.  I have to complete one and always been employed.

[Deleted User]

comeandgo said:

rocktron_amp said:

Dazed_and_C0nfused said:

Only HMRC can give a definite answer but are you saying that HMRC sent you a tax code notice amending your tax code to 0T or could it be that an employer decided to operate this tax code for some reason?

Some employers use code 0T where they (the employer) believe the new starter process hasn't been adhered to i.e. you have completed and returned the new starter declaration to them (the employer).

My new tax code letter was 6th February 2022 saying 0T. I am also thought it has something to do with Self Assessment Tax Return, but according HMRC's own information website, I don't have to do one for 31 January 2022, because I was employed (salary < £100K).

Did HMRC tell you directly that you have not to compete the self assessment?  Being employed is not a reason to stop completing self assessment.  I have to complete one and always been employed.

Unless your income is over £50000 and you are claiming child benefit or your income is over £100k you should not have to complete a self-assessment tax return in that case. I would be asking why you have to.

rocktron_amp

comeandgo said:

rocktron_amp said:

Dazed_and_C0nfused said:

Only HMRC can give a definite answer but are you saying that HMRC sent you a tax code notice amending your tax code to 0T or could it be that an employer decided to operate this tax code for some reason?

Some employers use code 0T where they (the employer) believe the new starter process hasn't been adhered to i.e. you have completed and returned the new starter declaration to them (the employer).

My new tax code letter was 6th February 2022 saying 0T. I am also thought it has something to do with Self Assessment Tax Return, but according HMRC's own information website, I don't have to do one for 31 January 2022, because I was employed (salary < £100K).

Did HMRC tell you directly that you have not to compete the self assessment?  Being employed is not a reason to stop completing self assessment.  I have to complete one and always been employed.

Yes, if you have particular circumstances then you do need to submit a SATR.

For myself, I alway got my limited company accountants in the past to do mine. I was an independent contractor.

The last time I submitted a SATER was January 31, 2021. I paid my accountants to do one final time.

This is because 6th April 2019 to 5th April 2020, I was self employed and then fixed term contract (employed).

For January 31, 2022, I did not bother for the tax year 6th April 2020 to 5th April 2021 (employed completely)

Let me check my notebook. Ok here:

I rechecked HMRC web site
www.gov.uk/check-if-you-need-tax-return

www.gov.uk/check-if-you-need-tax-return/y/no/no/between-50-000-and-100-000/no-i-do-not-have-children-or-did-not-claim/no/no/none-of-these/no/no

I printed the result of that form and then I saved it as a PDF as my proof of evidence.

[Deleted User]

rocktron_amp said:

comeandgo said:

rocktron_amp said:

Dazed_and_C0nfused said:

Only HMRC can give a definite answer but are you saying that HMRC sent you a tax code notice amending your tax code to 0T or could it be that an employer decided to operate this tax code for some reason?

Some employers use code 0T where they (the employer) believe the new starter process hasn't been adhered to i.e. you have completed and returned the new starter declaration to them (the employer).

My new tax code letter was 6th February 2022 saying 0T. I am also thought it has something to do with Self Assessment Tax Return, but according HMRC's own information website, I don't have to do one for 31 January 2022, because I was employed (salary < £100K).

Did HMRC tell you directly that you have not to compete the self assessment?  Being employed is not a reason to stop completing self assessment.  I have to complete one and always been employed.

Yes, if you have particular circumstances then you do need to submit a SATR.

For myself, I alway got my limited company accountants in the past to do mine. I was an independent contractor.

The last time I submitted a SATER was January 31, 2021. I paid my accountants to do one final time.

This is because 6th April 2019 to 5th April 2020, I was self employed and then fixed term contract (employed).

For January 31, 2022, I did not bother for the tax year 6th April 2020 to 5th April 2021 (employed completely)

Let me check my notebook. Ok here:

I rechecked HMRC web site
www.gov.uk/check-if-you-need-tax-return

www.gov.uk/check-if-you-need-tax-return/y/no/no/between-50-000-and-100-000/no-i-do-not-have-children-or-did-not-claim/no/no/none-of-these/no/no

I printed the result of that form and then I saved it as a PDF as my proof of evidence.

That is correct. However, if you receive a notice to file a return you must complete it regardless of the circumstances. 

https://www.gov.uk/hmrc-internal-manuals/self-assessment-legal-framework/salf203

comeandgo

[Deleted User] said:

comeandgo said:

rocktron_amp said:

Dazed_and_C0nfused said:

Only HMRC can give a definite answer but are you saying that HMRC sent you a tax code notice amending your tax code to 0T or could it be that an employer decided to operate this tax code for some reason?

Some employers use code 0T where they (the employer) believe the new starter process hasn't been adhered to i.e. you have completed and returned the new starter declaration to them (the employer).

My new tax code letter was 6th February 2022 saying 0T. I am also thought it has something to do with Self Assessment Tax Return, but according HMRC's own information website, I don't have to do one for 31 January 2022, because I was employed (salary < £100K).

Did HMRC tell you directly that you have not to compete the self assessment?  Being employed is not a reason to stop completing self assessment.  I have to complete one and always been employed.

Unless your income is over £50000 and you are claiming child benefit or your income is over £100k you should not have to complete a self-assessment tax return in that case. I would be asking why you have to.

There are other reasons and I did know why I had to.

rocktron_amp

comeandgo said:

[Deleted User] said:

comeandgo said:

rocktron_amp said:

Dazed_and_C0nfused said:

Only HMRC can give a definite answer but are you saying that HMRC sent you a tax code notice amending your tax code to 0T or could it be that an employer decided to operate this tax code for some reason?

Some employers use code 0T where they (the employer) believe the new starter process hasn't been adhered to i.e. you have completed and returned the new starter declaration to them (the employer).

My new tax code letter was 6th February 2022 saying 0T. I am also thought it has something to do with Self Assessment Tax Return, but according HMRC's own information website, I don't have to do one for 31 January 2022, because I was employed (salary < £100K).

Did HMRC tell you directly that you have not to compete the self assessment?  Being employed is not a reason to stop completing self assessment.  I have to complete one and always been employed.

Unless your income is over £50000 and you are claiming child benefit or your income is over £100k you should not have to complete a self-assessment tax return in that case. I would be asking why you have to.

There are other reasons and I did know why I had to.

As I understood this: HMRC told you why you had to complete a SATR.

littledog70

Whats your total adjusted net income, salary alone does not give a full picture.. If the total of all your income is 125k or over then that could explain a 0T

rocktron_amp

littledog70 said:

Whats your total adjusted net income, salary alone does not give a full picture.. If the total of all your income is 125k or over then that could explain a 0T

Yes that would be true like if you had a buy-to-let property, shares in stock and investments, director in other businesses taking dividend. But in 2022 I only have a salary and no other means income.

A couple of weeks, I received a letter from the HMRC - "Withdrawing A Notice To File a Self Assessment Tax Return (SATR)"

Context: I was an IT contractor with a Limited Company until December 2019 and that was the very month when I invoiced as a personal service company through business entity. (Outside IR35)

In 2020, everything changed as you know, not just because of the pandemica, I found work only as a fixed term contractor (Inside IR35), essentially PAYE and Umbrella company. You cannot use the business entity LTD for Inside IR35 contract.  Ergo, I started the process of closing my LTD business.

In 2021, I closed my LTD and it was cleared off Companies House. I started with a new employer PAYE. Sadly, I became a full-time employee (FTE) again, because I really wanted "being my own boss" to work forever, but this stupid government and their Off Payroll Worker Rules killed off UK contracting for the majority.

In 2022, by March I have been 1 year as PAYE Employee. We suffer together. Sigh.

HMRC had me confused as an ex-contractor for SATR. I am still chasing the 0T tax code. I will call again on Monday and keep calling until I get an answer.