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  • FIRST POST
    • MSE Guy
    • By MSE Guy 19th Oct 11, 9:07 AM
    • 1,628Posts
    • 1,255Thanks
    MSE Guy
    MSE News: Over a million to be told they owe more tax
    • #1
    • 19th Oct 11, 9:07 AM
    MSE News: Over a million to be told they owe more tax 19th Oct 11 at 9:07 AM
    This is the discussion thread for the following MSE News Story:

    "More than one million owe cash after more tax errors were found. Millions others will get rebates ..."

Page 1
    • Esoog
    • By Esoog 19th Oct 11, 9:58 AM
    • 1,446 Posts
    • 692 Thanks
    Esoog
    • #2
    • 19th Oct 11, 9:58 AM
    • #2
    • 19th Oct 11, 9:58 AM
    Knowing my luck they'll find that I owe them more than the 2.5k I'm already paying back
    • BAA1
    • By BAA1 19th Oct 11, 10:08 AM
    • 1,075 Posts
    • 444 Thanks
    BAA1
    • #3
    • 19th Oct 11, 10:08 AM
    • #3
    • 19th Oct 11, 10:08 AM
    This latest article tends to contradict some information from an earlier article about tax reconciliations done in the previous batches.

    So, how reliable is the information from the "HMRC spokesperson" ?

    See : http://www.moneysavingexpert.com/news/reclaim/2011/01/100000s-more-tax-errors-found

    Where it says that :

    Gauke adds that HMRC is also working to clear the backlog of unreconciled tax cases from earlier years, but would not be chasing people for unpaid tax for periods before the 2007-08 tax year, although it would offer refunds to people who overpaid.
    Have HMRC / the government changed their minds and are now going to reclaim underpayments for earlier years, or is this latest information wrong ?
    • dtaylor84
    • By dtaylor84 19th Oct 11, 10:48 AM
    • 635 Posts
    • 519 Thanks
    dtaylor84
    • #4
    • 19th Oct 11, 10:48 AM
    • #4
    • 19th Oct 11, 10:48 AM
    Have HMRC / the government changed their minds and are now going to reclaim underpayments for earlier years, or is this latest information wrong ?
    Originally posted by BAA1
    I can see nothing in the latest information that contradicts the statement you quoted.
    • ScarletBea
    • By ScarletBea 19th Oct 11, 11:10 AM
    • 2,788 Posts
    • 4,163 Thanks
    ScarletBea
    • #5
    • 19th Oct 11, 11:10 AM
    • #5
    • 19th Oct 11, 11:10 AM
    They honestly don't know what they're doing, so please, question everything you get.
    I received a letter saying I'd overpaid, but when I looked at it properly, I realised they'd forgotten to include as income my savings interest (where I need to pay extra tax). And that was clearly stated in the PAYE code.
    So I called them, they've corrected the calculations, and I'll still receive some money, but much less than they said!
    Being brave is going after your dreams head on
    • BAA1
    • By BAA1 19th Oct 11, 11:57 AM
    • 1,075 Posts
    • 444 Thanks
    BAA1
    • #6
    • 19th Oct 11, 11:57 AM
    • #6
    • 19th Oct 11, 11:57 AM
    I can see nothing in the latest information that contradicts the statement you quoted.
    Originally posted by dtaylor84
    The article says:
    The spokesman says: "Money that is owed going back many years is now going to be automatically paid back as we get the tax system up to scratch.
    Which some MSE members are reading as being another batch of reconciliations which result in an underpayment for tax years prior to 2007-08, read other similar threads posted today on this forum.

    You will notice that my post was in the form of a question seeking confirmation of the facts
    Last edited by BAA1; 19-10-2011 at 12:00 PM.
    • dori2o
    • By dori2o 19th Oct 11, 2:18 PM
    • 7,833 Posts
    • 13,169 Thanks
    dori2o
    • #7
    • 19th Oct 11, 2:18 PM
    • #7
    • 19th Oct 11, 2:18 PM
    The way it should read is, anything owed to HMRC from BEFORE 07/08 will be written off as it is already outside the timeframe for collection. Those cases where tax has been overpaid for 05/06 to 07/08 will be refunded to the individuals.

    As for the report, again it's nothing more than an attack on HMRC, DESPITE the fact that this is the normal proceedure. HMRC now has all the information it needs to review the 10/11 tax year. There will be cases where peoples circumstances have changed and this is the first HMRC will be aware of it.

    This is how the system works. They issue a code at the start of the year using information they know at the time (information from the April before, then the employers use that to calculate the tax due. If there have been any changes to salary, employer benefits etc that HMRC have not been made aware of, then this can result in over or underpayments of tax.

    This isn't a HMRC Blunder as is being reported, it's the natural process that takes place each year.

    Yet again we see lazy, antagonistic reporting from MSE.
    • Pennywise
    • By Pennywise 20th Oct 11, 8:42 AM
    • 11,764 Posts
    • 22,776 Thanks
    Pennywise
    • #8
    • 20th Oct 11, 8:42 AM
    • #8
    • 20th Oct 11, 8:42 AM
    This isn't a HMRC Blunder as is being reported, it's the natural process that takes place each year.
    Originally posted by dori2o
    Let's wait to see the reasons for the underpayments shall we?

    It's clear from fora like these that a lot of the previous years' underpayments were HMRC's fault, mostly because they didn't act on information received, i.e. where people started getting state pension or other taxable benefits which HMRC were told about by other Govt agencies, or failing to act on P45/P46s issued to them by new employers. If it's the same again, then, yes, it's HMRC's fault.

    I've absolutely no doubt that some of the cases will be because employers havn't submitted the right forms for new employees properly, or taxpayers havn't told HMRC of new sources of income, in which case, yes, those aren't HMRC's fault.

    But it's premature to claim that it's everyone else's fault but HMRC which is what you're trying to imply. Let's sit back and wait to see why most of these underpayments arose and then we can apportion blame. If it turns out that HMRC are mostly blameless then fair enough.
    • roddydogs
    • By roddydogs 20th Oct 11, 8:56 AM
    • 6,286 Posts
    • 2,684 Thanks
    roddydogs
    • #9
    • 20th Oct 11, 8:56 AM
    • #9
    • 20th Oct 11, 8:56 AM
    Why is this news, it happens every year, dosent it? cue SC A19 again
  • SUGARSPICE
    Help With Calculation
    Hi.

    Is there anyone on here that could help me to see if Im owed a tax rebate?

    Ive got two tax rebates in the past.But I cant figure out how they have done it.

    I got some help from someone on here but cant remember their forum name.

    • jem16
    • By jem16 25th Oct 11, 2:59 PM
    • 18,700 Posts
    • 11,516 Thanks
    jem16
    Hi.

    Is there anyone on here that could help me to see if Im owed a tax rebate?
    Originally posted by SUGARSPICE
    You would need to post the figures and tax code from the year in question and then we could work out if you are due any rebate?
    • bhindi
    • By bhindi 26th Oct 11, 9:36 AM
    • 65 Posts
    • 14 Thanks
    bhindi
    Hi, I am hoping someone might also check the figures for me please.

    Under 60, recieving no benefits,
    2010-11 Pay 9891.04 gross..... tax 682.40 tax code 647L
    2009-10 Pay 9821.58 gross tax 668.40 tax code 647L
    2008-09 Pay 9373.72 gross tax 666.80 tax code 603L


    Many thanks.
    • JimmyTheWig
    • By JimmyTheWig 26th Oct 11, 9:42 AM
    • 11,866 Posts
    • 11,403 Thanks
    JimmyTheWig
    Hi, I am hoping someone might also check the figures for me please.

    Under 60, recieving no benefits,
    2010-11 Pay 9891.04 gross..... tax 682.40 tax code 647L
    2009-10 Pay 9821.58 gross tax 668.40 tax code 647L
    2008-09 Pay 9373.72 gross tax 666.80 tax code 603L
    Originally posted by bhindi
    Tax paid is correct according to your gross pay and tax code.
    Whether your tax code is correct isn't something I can say.
    • bhindi
    • By bhindi 26th Oct 11, 1:44 PM
    • 65 Posts
    • 14 Thanks
    bhindi
    Thank you. Could you possibly tell me how I can find out what is the correct code for me?

    thanks
    • JimmyTheWig
    • By JimmyTheWig 26th Oct 11, 2:24 PM
    • 11,866 Posts
    • 11,403 Thanks
    JimmyTheWig
    Thank you. Could you possibly tell me how I can find out what is the correct code for me?
    Originally posted by bhindi
    You'd have to ask the tax office.

    But the code you've given is correct for someone with no complications.

    What makes you think something is wrong?
  • SUGARSPICE
    jem16.

    Tax Year 2000/2001

    Tax Code 438L

    Gross Pay 7,901.00

    Tax Paid 852.95.

    I think Im owed 262.71.

    Do you think I would be able to get a rebate for 2000/2001?

    • dori2o
    • By dori2o 26th Oct 11, 3:10 PM
    • 7,833 Posts
    • 13,169 Thanks
    dori2o
    jem16.

    Tax Year 2000/2001

    Tax Code 438L

    Gross Pay 7,901.00

    Tax Paid 852.95.

    I think Im owed 262.71.

    Do you think I would be able to get a rebate for 2000/2001?

    Originally posted by SUGARSPICE
    Short answer. No

    The last year for PAYE tax refunds is currently the year ending 5 April 2006 and any ncliams for that year must be made before 31/01/2012.

    As Mikeyorks posted in your other thread, this table provides the dates for which paye tax claims have to be made by.

    Time limits for claiming back PAYE tax
    • JimmyTheWig
    • By JimmyTheWig 26th Oct 11, 3:14 PM
    • 11,866 Posts
    • 11,403 Thanks
    JimmyTheWig
    Tax Year 2000/2001

    Tax Code 438L

    Gross Pay 7,901.00

    Tax Paid 852.95.

    I think Im owed 262.71.

    Do you think I would be able to get a rebate for 2000/2001?
    Originally posted by SUGARSPICE
    Gross income: 7,901.00
    Tax free allowance (from tax code): 4,385.00
    Taxable pay: 3,516.00
    Amount at 10%: 1,520.00
    Tax at 10%: 152.00
    Amount at 20%: 1,996.00
    Tax at 20%: 399.20
    Total tax due: 551.20

    [I've used figures for the 10% band from http://www.hmrc.gov.uk/stats/tax_structure/table-a2a.pdf]

    So I make it that you've paid 301.75 too much!
    I have no idea if you can claim from that far back, though.
  • SUGARSPICE
    dori2o

    Do you know the latest news that they have made mistakes in the tax years going back to 2003-2004 aswell which they are now sorting out for people?

    This was obviously years ago which would`ve also had a time limit but they are going to be dealing with it.

    So I was wondering if it could be done for 2000/2001

    JimmyTheWig.

    Thank you very very much.

    • dori2o
    • By dori2o 26th Oct 11, 5:04 PM
    • 7,833 Posts
    • 13,169 Thanks
    dori2o
    dori2o

    Do you know the latest news that they have made mistakes in the tax years going back to 2003-2004 aswell which they are now sorting out for people?

    This was obviously years ago which would`ve also had a time limit but they are going to be dealing with it.

    So I was wondering if it could be done for 2000/2001

    JimmyTheWig.

    Thank you very very much.

    Originally posted by SUGARSPICE
    HMRC cannot go back any further than you or I can do. They are subject to the same time constraints as everyone else other than is cases of fraud in nwhich instances they can go back for an indefinate period if there is sufficient evidence to do so.

    This means that despite the scaremongering that is ongoing, HMRC will not be going back to 2003/04.
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