HRMC Tax Calculation Advice

[Baz1994]

I have just received a Tax Calculation for 2012-2013 from HMRC advising that I have underpaid some tax.

 

Sorry to sound stupid but on checking the calculations presented against the relevant P60 the PAYE Income amounts differ - Can anyone possibly explain or give a reason as to why this is ?

[caro]

Did you have another job or income during the year? You should have a p60 for each job.

 

Do you have any benefits with your job which may be taxable?

[Baz1994]

Did you have another job or income during the year? You should have a p60 for each job.

 

Do you have any benefits with your job which may be taxable?

 

No only one job caro and only one P60.

 

I have no other benefits with my current employers.

[caro]

I'd get whoever does your wages to check your p60 and if it matches what they've told HMRC.

[Baz1994]

I'd get whoever does your wages to check your p60 and if it matches what they've told HMRC.

 

Ok and will do - many thanks again

[caro]

No problem. Let us know how you get on.

[Baz1994]

I Will do and many thanks for your comments

[Mike_hawk]

HMRC will forward you copies of any additional employment data it holds. Telephone call will usually suffice, if you can live with the 45 minutes on hold!

 

I had a similar issue in 2010-2011 with an incorrectly keyed N.I number [mine was prefixed NM his was NP] for someone at the other end of the country. Both incomes were allocated to me for tax purposes which only came to light after receiving a demand for over 4k whilst everything I'd earned had been discharged via PAYE.

[Still_surviving]

If you had only job, no benefits in kind like a company car, and no other factors to consider, you should see tax code 810L on your P60 - let me know if thats the case.

 

When you read down the tax calculation, does it make any mention of 'underpaid tax for previous years'? that can sometimes confuse people as HMRC often play catch up.

 

Im a little confused by the line you posted:

 

"No only one job caro and only one P60."

 

Do you mean you had a company car? If so, its entirely possible you could get an underpayment as HMRC can only estimate the car/fuel benefit at the start of the year, re-calculating it

when your employer sends in its P11ds

[BazzaS]

 

Im a little confused by the line you posted:

 

"No only one job caro and only one P60."

 

Do you mean you had a company car? If so, its entirely possible you could get an underpayment as HMRC can only estimate the car/fuel benefit at the start of the year, re-calculating it

when your employer sends in its P11ds

 

 

I think it was a reply to the user with username "caro", rather than a typo for "company car".

[Still_surviving]

oops my apologies then

 

Does simplify things though

[Baz1994]

HMRC will forward you copies of any additional employment data it holds. Telephone call will usually suffice, if you can live with the 45 minutes on hold!

 

I had a similar issue in 2010-2011 with an incorrectly keyed N.I number [mine was prefixed NM his was NP] for someone at the other end of the country. Both incomes were allocated to me for tax purposes which only came to light after receiving a demand for over 4k whilst everything I'd earned had been discharged via PAYE.

 

Many thanks for your reply and will give them a call.

[Baz1994]

If you had only job, no benefits in kind like a company car, and no other factors to consider, you should see tax code 810L on your P60 - let me know if thats the case.

 

When you read down the tax calculation, does it make any mention of 'underpaid tax for previous years'? that can sometimes confuse people as HMRC often play catch up.

 

Im a little confused by the line you posted:

 

"No only one job caro and only one P60."

 

Do you mean you had a company car? If so, its entirely possible you could get an underpayment as HMRC can only estimate the car/fuel benefit at the start of the year, re-calculating it

when your employer sends in its P11ds

 

Yes it does actually, all starting to make sense I think ! They have mentioned that underpaid amount is from previous years (2011 & 2012). I have just received another Tax calculation for 2011-2012 this morning showing JSA amount plus PAYE income and another Tax Underpaid amount which has appeared on my latest Tax Calculation received for 2012-2013.

 

Does look like HRMC are playing catch-up !

 

There is also again a Flat Rate Job Expense figure for £120 in which I can only imagine is in respect of my previous employment with the Post Office for clothing allowance ? Will HRMC be able to confirm this ?

[Still_surviving]

Cool....the penny drops

 

HMRC will indeed be able to confirm about the flat rate job expenses. That will stay in your code until such time as you tell them otherwise - so yes get in touch.

 

Unfortunately it can get confusing when HMRC play catch up. The fact you had Job Seekers Allowance would increase the likelihood of an underpayment as it isnt something that would have been included in your tax code for the year.

 

It sounds like someone is reviewing your file over the last three years and the 2013 tax calculation is the result of this.

[Baz1994]

Thanks again and yes all seems to be falling into place. They have mentioned that the underpaid amount of £465.80 will be collected through tax code for 2013 and 2014, so I suppose that is some consolation as I have not got that spare at the moment

 

Will my Tax Code change again in that case ?

[Still_surviving]

Ouch! you need to speak to them if they intend collecting this in your 2013/14 code

 

There are only 4 months of 2013/14 left (assuming any new code doesnt get to your employer in time for the November payrun)

 

This will mean that your pay packet could be hit hard in December if they try and take 9/12 of that debt in one go.

 

Given the close proximity to the end of the tax year, I would be arguing for them to begin collecting the debt from 2014/15 not 2013/14

[Baz1994]

Ouch! you need to speak to them if they intend collecting this in your 2013/14 code

 

There are only 4 months of 2013/14 left (assuming any new code doesnt get to your employer in time for the November payrun)

 

This will mean that your pay packet could be hit hard in December if they try and take 9/12 of that debt in one go.

 

Given the close proximity to the end of the tax year, I would be arguing for them to begin collecting the debt from 2014/15 not 2013/14

 

Oh dear dont need that right now Will get onto them in the morning.