PAYE codings - amendments

PAYE codings - amendments

Didn't find your answer?

Is it just me?

We wrote to HMRC at the end of November asking for a client's pension contributions and Gift Aid donations to be taken out of his Notice of Coding for the year to 5 April 2009.

I have had a letter back this morning saying:

"No doubt you will be aware that section 685 Income Tax (Earnings and Pensions) Act 2003 puts HMRC under an obligation to get things right including securing as far as possible the total Income Tax payable in respect of PAYE income for any year is deducted from the PAYE income paid in the year.

Regulation 14 of the Income TAX (PAYE) regulations 2003 requires HMRC to determine a code that as near as possible results in the correct amount of tax being decducted by the 5 April. Please provide further information if the payments have now ceased or been reduced and by waht amounts."

Eh? (Won't tell you what my intial reaction was!)

I rang the Revenue. Apparently, they don't want people having allowances taken out of their Notices of Coding and then making a claim for repayment at the end of the year because that creates work for the Revenue. The person I spoke to agreed that that means more work for the agent. (I couldn't be too cruel to him - he was just the poor call centre man who answered the phone.)

Have I missed a fundamental change in Revenue policy????
Marcella Shone

Replies (3)

Please login or register to join the discussion.

avatar
By User deleted
16th Jan 2009 14:47

Sorry Marcella
I did not realise the payments had ceased! But if the code is amended the practical result is an underpayment anyway, to be collected 2009/10 or later, unless they do not use week1/month1 and he takes the hit in one go.

Thanks (0)
avatar
By AnonymousUser
16th Jan 2009 14:33

Vince
The client isn't due any relief and doesn't want to end up with an underpayment. He will now - it's too late. But the quesiton is of general interest. What if someone's 09/10 coding includes relief that isn't due?

Thanks (0)
avatar
By User deleted
16th Jan 2009 12:28

Why would you do that?
surely your client will get his tax relief earlier.

HMRC will always attempt to collect what they believe to be the right amount of tax, under PAYE.

Thanks (0)