Policy change for coding out?????
Having submitted quite a few 2008 tax returns (which wasn't without its problems thanks to our software having numerous 'issues') I have received the updated statement for one of my clients which not only has the July 2008 POA coded out but all of 2009's. The liability was £2,942.71.
It would appear that there is a new question on the 2007/08 tax return, on page 6 - If you owe tax for 2007/08 & have a PAYE tax code, we will try to collect tax due (up to £2,000) through your tax code for 2009-10, unless you put an 'x' in the box. This INCLUDES any outstanding POA's. So my clients July POA has been coded into 2010. This crazy move means that the 'tax outstanding' is effectively nil (We all know that isnt the case) & HMRC have cancelled her 2008/09 POA's!!!!!!
If you map this forward to 2012. It means that instead of paying £1,600 every 6 months, she will pay around £4,500 every 2 years, until her source of PAYE ceases, then coding out must stop & if she is still in the same position will owe nearly £10k in 'catch-up' payments.
Having spoken to a tax specialist & HMRC they have confirmed that this year the policy has changed, but once everyone starts querying their bizarre statements & PAYE codes, how long will it be before they reverse their decision - moving us into even more complications? I can’t see that everyone at HMRC will understand the change, our software providers definitely don’t & we are faced with having to manually adjust all of our client accounts.
- Closing my business down 72 4
- What do you all do in your spare time? 842 34
- New ACCOUNTINGQUESTIONS website launching 274 6
- JUDGE FRAUD ALERT 271 4
- VAT on long lease in comercial property that has opted to Tax 191 6
- Director - earning less than £8500 and no taxable benefits - PllD? 100 1
- So who has completed a 2015 tax return then? 587 12
- Scams are not always obvious 2,240 36
- Auto Enrolment - Director Only Answer 1,466 21
- CIS Subcontractor Catch Twenty Two Position after 14 years 189 2
- VAT flat rate scheme 104 1
- Can I record depreciation, prepayments and accrued expenses in cash accounting? 289 4
- Need some help on importing procedures and VAT 87 1
- I have let a client go as it wasnt worth the hassle, 2,092 19
- TaxCalc - A Return to Form 412 6
- Should a non trustee sign Scottish charity accounts? 151 1
- How do we get US withholding tax back? 222 3
- FPS or EPS 169 2
- Continuity of Practice 220 2
- IRIS Professional Yearend 144 2
- Moving away from CCH software 953
- QROP pension input amounts 440
- write off loan or loan to equity swap or both 382
- HMRC BENCHMARK EXPENSES 357
- Unused Losses and Post Cessation Receipts 325
- fraud 284
- EIS relief on transferring shares to spouse 259
- Sole trade business in UK, but the owner works from EU 228
- Construction CIS LLP Company 212
- EPS and CIS deductions 200