Tax Overview and Tax Calculation Difference - Lender Wants Correction or Explanation

2p Difference

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Hi,

Has anyone had a difference between the Tax Overview from the HRMC and the Tax Calculation from the agent's own software used to file the return?

We're applying for a mortgage and the lender has noticed a 2p difference between the these two documents on my wife's 2015-16 self assessment.  The Tax Calculation from my wife's accountant has a higher tax due amount by 2p compared to the Tax Overview from the HMRC and the Lender (via our broker) is adamant that the figures on these two documents must be the same or there must be an explanation.

We've raised a job order with the HMRC to look into the difference and for them to either correct it or issue an explanation - we have to wait 5 days for them to look into this.  

From my review of the Tax Calculation workings from the accountant and comparing to the Tax Overview, it appears the HMRC have rounded down  my wife's income for student loan repayment purposes.

What are members experience of lenders scrutiny into a 2p difference on these documents?  Also, given this is an urgent request for a mortgage (we've made an offer on a property), how likely will the HMRC correct a 2p difference on their part and issue documents sooner than 14 days? Any advice to have them expedite our request?

Thanks for your thoughts.  As you can image, I've spent hours researching this information and I feel powerless to do anything of a 2p difference.

 

 

 

Replies (25)

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By bernard michael
30th Oct 2016 10:36

I've never had the problem. Don't bother with HMRC
I would get hold of the idiot's manager by the [***]/neck and tell him his staff need educating
as it is obviously rounding. I'm sure they must have heard of it

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Replying to bernard michael:
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By aderemi
30th Oct 2016 15:14

Thanks - I'm hoping the Mortgage agent is challenging the contact on the lender's side really. His last conversation with them was apparently heated but there was no getting round the need to provide an explanation. We'll see what the HMRC can do.

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By pacta
30th Oct 2016 11:41

Ridiculous. As stated this is clearly rounding in the respective software systems.

Tell the bank manager he is an idiotic bureaucrat.

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Replying to pacta:
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By aderemi
30th Oct 2016 15:17

If we weren't so invested with purchase, we'd take our business down the road. But they've left a foot print on our credit file now and I presume other lenders would be asking the same questions given the tighter rules around affordability checks.

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By Marion Hayes
30th Oct 2016 11:55

Quickest and easiest answer is show calculation to accountant and ask them to round down to match

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Replying to Marion Hayes:
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By aderemi
30th Oct 2016 15:18

We thought about doing this but the accountant would need to re-submit the calculation and there's no guarantee that the Tax Overview wouldn't come up with another rounding difference. Also, I don't think it's possible to issue a correct...?

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By Manchester_man
30th Oct 2016 13:32

What a pratt!

The broker is quite frankly an [***].

2p difference doesn't make a blind bit of diffetence.

You can always do as Marion says and simply ask the accountant to tweak the figures to match HMRC.

Whatever you do, for the sake of others that will encounter this idiot, make a formal complaint against him.

Even if the difference were £pounds, this is [***] all to do with the mortgage broker. 2p!!!!!!!!!

I would hang him out to dry

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Replying to Manchester_man:
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By aderemi
30th Oct 2016 15:22

The issue is actually with the lender Manchester_man. The Broker has been communicating what the lender has asked for.

The Accountant says she can't doing anything on her end - ie she can't make a correction once it has been submitted.

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Replying to aderemi:
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By Cloudcounter
30th Oct 2016 15:40

aderemi wrote:

The Accountant says she can't doing anything on her end - ie she can't make a correction once it has been submitted.

That's nonsense. It should be quite simple to produce a tax computation that shows the same as the HMRC record. If the accountant's computation is exported to a pdf, there is free software to edit it. I could do it in seconds.

It wouldn't even have to add up properly as the pedants at the prospective lender wouldn't even think to check it.

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Replying to Cloudcounter:
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By aderemi
30th Oct 2016 17:47

Would be too worried of being found out.

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Replying to aderemi:
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By Cloudcounter
31st Oct 2016 07:39

aderemi wrote:

Would be too worried of being found out.

Found out for what? For altering the accoutant's calculation to equal the HMRC calculation because the roundings were different? No doubt they are imagining a penalty of life imprisonment in the Tower of London.

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Replying to Cloudcounter:
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By Roma121008
28th Mar 2022 22:30

Need to know more

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Replying to Roma121008:
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By Leywood
28th Mar 2022 22:48

Lauren Giles wrote:

Need to know more

Most pointless post of the week!

If you are going to spam dump you had better be quick!

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By Disabled Accountant
30th Oct 2016 15:39

If the lender thinks that 2p difference on tax, which is somewhere around 10p on annual income, is going to make a difference as to whether the borrower can meet the repayments, then I suggest that lender should be avoided.

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Replying to Disabled Accountant:
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By aderemi
30th Oct 2016 17:49

I'd agree, if the lender handn't already performed a credit check and validated everything else, I'd take my business elsewhere.

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By cstwragby
30th Oct 2016 16:54

2p difference? Sheesh, wonder what they would do about the £145.60 difference when HMRC incorrectly don't charge Class 2 in many cases!

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By CMED
30th Oct 2016 17:03

The lender is not willing to lend. The reason for not lending is a 2p difference.

I think you need to look further afield as to why the' lender is not willing to lend'.

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Replying to CMED:
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By aderemi
30th Oct 2016 18:04

I had thought this too but the lender is a proper high street bank and surely they'd just say we don't want to lend rather than string us along? My hope is that the HMRC can respond quickly.

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By Marion Hayes
31st Oct 2016 07:47

HMRC are not going to be able to do anything.
Your accountant however, who is paid by you, is being silly. Their is no need to resubmit anything - they just pop into their software, take the pence off the figures which are being used too accurately by rounding to match, and print out a new calculation for you.
Or as suggested, if that is too difficult, pdf and edit the necessary figures.without touching the tax software at all.

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By Duggimon
31st Oct 2016 08:58

The income for student loan repayment purposes should be rounded down, get the accountant to correct their comp.

As others have said, they can easily do so without resubmitting.

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By John R
31st Oct 2016 10:33

The OP said "the figures on these two documents must be the same or there must be an explanation". So surely you can simply provide the explanation: "The 2p difference represents a rounding difference arising between the software used by the accountant in producing the SA302 and that used by HMRC in providing the tax year overview".

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By Moonbeam
31st Oct 2016 10:50

I suggest you go on to Twitter, publicising the matter, and make it very clear this bank are prejudicing your purchase. Insist that the bank provide you with a senior person's telephone number, or they call you.
Twitter can work wonders in situations like this and it seems to be the only thing that the bank responds to.

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RLI
By lionofludesch
31st Oct 2016 10:53

Tell the bank you'll complain to the Ombudsman.

A letter beginning "Are you seriously suggesting .....?" often does the trick.

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By Briar
31st Oct 2016 13:11

Make a complaint to the Chief Exec of the lender (email addresses available online). He will appoint a senior complaints manager to look at the case. My experience is that a problem get sorted very quickly this way (one even receives hampers and a goodwill payment!)

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By aderemi
09th Nov 2016 20:05

Thanks all for your feedback.

After 3-4 attempts we were able to get through to someone helpful at the HMRC who wrote a letter stating that information on the SA302 and Tax overview were accurate despite the 2p difference. That letter came on Tuesday and we sent it to the Lender yesterday morning and by early afternoon our mortgage offer came through! Huge relief and a lot of bother over 2p but very relieved to be through it all. Thanks again for your responses.

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