Why can't HMRC get PAYE codings right?

Why can't HMRC get PAYE codings right?

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My revised coding notice for 2011/12 includes relief for a pension premium even though I have not paid and will not be paying any pension premium in the current tax year.

HMRC says that this is because it was included in my tax return and if I want it removed I need to file an amended return (for 2010/11).

I can't see anything in my last return about premiums for the coming year.

Am I missing something?

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By taxhound
13th Feb 2012 18:58

Sounds like

It sounds like they have got the wrong end of the stick.  I would telephone them and expalin that, although you did have pension contributions in 2010/11, as detailed in your 2010/11 tax return, these have now ceased and they therefore need to remove this allowance from your 2011/12 and 2012/13 tax codings or you will not pay enough tax at source.

There is no box in the tax return for estimated pension premiums in the next year as far as I am aware....

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By ACDWebb
13th Feb 2012 19:38

Part of the

"trying to be helpful" system that adjusts this years code on the basis of last years return entries, assuming it will all be the same again this year.

Phone them and tell them it won't be. Of course if the new code is operated in the meantime you will have a refund followed by a reduced code on Month 1 and a potential underpayment.

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