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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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
Ridiculous. As stated this is clearly rounding in the respective software systems.
Tell the bank manager he is an idiotic bureaucrat.
Quickest and easiest answer is show calculation to accountant and ask them to round down to match
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
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.
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.
Need to know more
Most pointless post of the week!
If you are going to spam dump you had better be quick!
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.
2p difference? Sheesh, wonder what they would do about the £145.60 difference when HMRC incorrectly don't charge Class 2 in many cases!
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'.
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.
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.
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".
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.
Tell the bank you'll complain to the Ombudsman.
A letter beginning "Are you seriously suggesting .....?" often does the trick.
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!)