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  • FIRST POST
    • jsj25
    • By jsj25 12th Apr 18, 11:01 PM
    • 27Posts
    • 1Thanks
    jsj25
    Self-Assessment - Paying the same tax back twice?
    • #1
    • 12th Apr 18, 11:01 PM
    Self-Assessment - Paying the same tax back twice? 12th Apr 18 at 11:01 PM
    Hi guys,

    Iím in the process for filling in a self-assessment for the first time. Iím employed full-time but undertook some sporadic self-employed work in the 2017-18 tax year.

    Looking at my calculation so far, it seems like thereís an error in one of the calculations HMRC is spitting out. In the last tax year, I switched employers. The total that I earned between the two was £20,902.39, and the tax I paid was £1,869, which seems about right.

    When I changed employers in November 2017, I ended up inadvertently receiving two tax allowances for that month, which resulted in me owing HMRC £192. They wrote to me and changed my tax code to 876L X (from 1150L X) to reclaim this money by 5 April, and as far as Iím aware this has now been fully paid off.

    However, on my self-assessment, itís included this £192 as part of the tax that I owe. Am I correct in assuming that this shouldnít be the case, given that that money was repaid to them through my tax code with my employer?

    FYI, for this question:
    Underpaid tax for earlier years included in your tax code for 6 April 2017 to 5 April 2018 (from your PAYE Notice of Coding).
    ... it had pre-populated the answer with £192, which I initially assumed was correct. However, if it's talking specifically about earlier years, should this number theoretically be £0?
Page 1
    • MichelleUK
    • By MichelleUK 13th Apr 18, 7:37 AM
    • 356 Posts
    • 227 Thanks
    MichelleUK
    • #2
    • 13th Apr 18, 7:37 AM
    • #2
    • 13th Apr 18, 7:37 AM
    Hi guys,

    Iím in the process for filling in a self-assessment for the first time. Iím employed full-time but undertook some sporadic self-employed work in the 2017-18 tax year.

    Looking at my calculation so far, it seems like thereís an error in one of the calculations HMRC is spitting out. In the last tax year, I switched employers. The total that I earned between the two was £20,902.39, and the tax I paid was £1,869, which seems about right.

    When I changed employers in November 2017, I ended up inadvertently receiving two tax allowances for that month, which resulted in me owing HMRC £192. They wrote to me and changed my tax code to 876L X (from 1150L X) to reclaim this money by 5 April, and as far as Iím aware this has now been fully paid off.

    However, on my self-assessment, itís included this £192 as part of the tax that I owe. Am I correct in assuming that this shouldnít be the case, given that that money was repaid to them through my tax code with my employer?

    FYI, for this question:
    Underpaid tax for earlier years included in your tax code for 6 April 2017 to 5 April 2018 (from your PAYE Notice of Coding).
    ... it had pre-populated the answer with £192, which I initially assumed was correct. However, if it's talking specifically about earlier years, should this number theoretically be £0?
    Originally posted by jsj25
    Yes, I noticed the same thing on the HMRC online form too. I changed it to £0.

    I think that the problem is that 'in-year' underpayments were new this tax year and HMRC have not reflected this in the tax return program. I would imagine that quite a few people will just accept what HMRC have included and end up overpaying.
    • dori2o
    • By dori2o 13th Apr 18, 8:47 AM
    • 7,673 Posts
    • 12,831 Thanks
    dori2o
    • #3
    • 13th Apr 18, 8:47 AM
    • #3
    • 13th Apr 18, 8:47 AM
    This is a known issue.

    You need to go back into your online account, select the self assessment option, then select Amend this tax return.

    Go to the relevant section, change the figure to 0.00 and in the explanation box type In Year underpayment.

    Work is underway to put a fix in place for this issue.
    To equate judgement and wisdom with occupation is at best . . . insulting.
    • MichelleUK
    • By MichelleUK 13th Apr 18, 9:41 AM
    • 356 Posts
    • 227 Thanks
    MichelleUK
    • #4
    • 13th Apr 18, 9:41 AM
    • #4
    • 13th Apr 18, 9:41 AM
    This is a known issue.
    Originally posted by dori2o
    Do HMRC list their 'known issues' anywhere online where non HMRC people can see them?
    • dori2o
    • By dori2o 13th Apr 18, 6:11 PM
    • 7,673 Posts
    • 12,831 Thanks
    dori2o
    • #5
    • 13th Apr 18, 6:11 PM
    • #5
    • 13th Apr 18, 6:11 PM
    Do HMRC list their 'known issues' anywhere online where non HMRC people can see them?
    Originally posted by MichelleUK
    Not as far as Im aware.
    To equate judgement and wisdom with occupation is at best . . . insulting.
    • jsj25
    • By jsj25 13th Apr 18, 10:00 PM
    • 27 Posts
    • 1 Thanks
    jsj25
    • #6
    • 13th Apr 18, 10:00 PM
    • #6
    • 13th Apr 18, 10:00 PM
    Yes, I noticed the same thing on the HMRC online form too. I changed it to £0.

    I think that the problem is that 'in-year' underpayments were new this tax year and HMRC have not reflected this in the tax return program. I would imagine that quite a few people will just accept what HMRC have included and end up overpaying.
    Originally posted by MichelleUK
    This is a known issue.

    You need to go back into your online account, select the self assessment option, then select Amend this tax return.

    Go to the relevant section, change the figure to 0.00 and in the explanation box type In Year underpayment.

    Work is underway to put a fix in place for this issue.
    Originally posted by dori2o
    I actually ended up calling HMRC today about something else, but I mentioned this to them and they confirmed what you've both said, ie. it's wrong and should be changed to £0.

    I wasn't aware that this was a new thing, but it would certainly explain why their systems haven't caught up. I've spoken to about four different HMRC advisers about the new trading allowance brought in this year and none of them had any information about it - one hadn't even heard of it. I'm guessing it'll take their systems a while to reflect these new measures.

    Thanks for the feedback, guys!
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