Anyone else seen incorrect tax code notices - rather worring!

Anyone else seen incorrect tax code notices -...

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Hi

Ive just had a tax code notice change for an employee of one of my clients going from 944L to 89T.  I ended up ringing the tax office who advised this was wrong.  Now this is the 3rd instance of incorrect tax codes I've seen in the last 2-3 months. No explanation was given - just 'oh its wrong/change to 1000L'

Wondered if anyone else had seen such problems - or had even thought a tax code change was odd and maybe hadnt checked it. 

Rather worrying to see - wonder how many others out there are incorrect!   Took me 30 minutes to get through to HMRC but glad I rang!

Replies (17)

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RLI
By lionofludesch
10th Apr 2014 12:14

Loads

There are loads of weird codes around.

I'm rather surprised they spoke to you regarding a client's employee though.

Are you the employee's agent ?

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By Cheshire
10th Apr 2014 12:29

All would result in people overpaying!!

I am the agent, although I wasnt sure whether they would or not speak to me - they took a ton of ID - about me as agent and then to check the individual concerned.  I also mentioned thats 3 Ive seen and so she offered to check any othrs I mightve been concerned about.  Wondering if HMRC know they have a problem and dont want to advertise the fact!!

 

One of mine was based on someone they thought MIGHT earn over £120k this year - no chance, the lady in question wished you could!! She was promptly put back to 1000L too.

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By magocks
10th Apr 2014 13:08

This seems to be happening to a lot of our client's employees. There is no obvious reason why the employees tax codes are suddenly being reduced, in some cases by over 50%, as they don't have other employment/are on a low wage etc. We have not been able to find out why they have changed as HMRC will not speak to us regarding client's employees. Plus, these employees will not know the first thing about tax codes/personal allowances etc so wont be wanting to phone HMRC.

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By DMGbus
10th Apr 2014 14:01

Duplicate employment record

Looks like last year's "duplicate employment record" software bug at HMRC end has been resurrected following the recent update.

I had hoped that last October/November's update had permanenly fixed this issue (a software bug at HMRC end, even though I got the impression that HMRC was trying to deny that it was their fault) so it is disappointing to see this tedious and time-consuming matter re-occur.

 

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By aiwalters
10th Apr 2014 14:19

lack of P45

we've noticed the problem where an employee leaves employment A and starts employment B, and the RTI with the starter information is processed before the RTI with the leaver information (eg when B runs weekly payrolls, and A runs monthly payrolls). HMRC assumes both employments are current, and either issues a BR code, or splits the code between the two employments! So much for REAL TIME information; HMRC now get the information of leavers up to a month after leaving, whereas previously they'd get the P45 more or less straight away.

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By Supotco
10th Apr 2014 15:16

I've had a few where the

I've had a few where the personal allowance has mysteriously been taken away. In all  of these cases the client has been just into the 40% band and is filling out a tax return because (s)he has rental income or a small amount of self-employment income. I was, however, appalled to see one coding which had been issued because my client was 'between jobs'. My client was actually dead...

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By Juhi
10th Apr 2014 16:10

loads

I had few wrong codes including 1 K code after ringing it is changed to 1000l. I think it is something to do with duplication of data as in all cases they had split the codes in to two saying the employees have got two jobs.

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By taxhound
10th Apr 2014 16:24

K1073 - should be K131

HMRC have sneaked in a crafty little "expected underpayment" from 2013/14 of £3700 into my client's 2014/15 tax code, which turns into a £9500 adjustment to the tax code.  This happened because some twit new system doubled her salary last year on a reorganisation of her employer (yes, that old RTI problem) and decided she earned over £100k a few weeks ago when actually she earns much less than £100k.

I only found out this week.  Rang HMRC two days ago and the charming man on the phone told me it could not be changed now (even through I don't think she owes anything for 2013/14) because the tax year has started now.  Of course if I had rung LAST week he could have changed it.

Snottogram going off to the powers that be to ensure client does not pay an extra £300 per month in tax this year and then have to claim it all back again after the year end.

Funnily enough, they had not removed her personal allowance for 2014/15!

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By Cheshire
10th Apr 2014 17:28

Want to contact HMRC!

Does anyone have an email address for HMRC that I can use to feed this back to them?? Can only find a phone number and already had one 20 minute wait and I feel a rant coming on!! Maybe I should also send an invoice to them for all the time they waste me and my clients, with a penalties etc 

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By Vaughan Blake1
11th Apr 2014 14:40

Did you use the agents helpline?

I do and I have never had to wait more than a few moments to get through and they are very good at sorting out PAYE codes.

Death, taxes and incorrect PAYE codes the certainties of life!

BTW why not buy a goldfish and rant at that?  The results will be the same and you will save on phone bills!

Taxhound - try ringing again on the basis of 'another day another (different) answer'.  If it's wrong it's wrong whatever the calendar says.  If you advise that the client is in SA then they should wait for the 2013-14 SATR and not pre-judge the underpayment.  A case of premature calculation methinks.  

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By Cheshire
14th Apr 2014 17:23

Agents helpline - noooo

Hi

I tried the agents helpline but they will not speak to me as it was about a Limited company and Im not an agent for any individuals. So tbh - I had a rant about that to the Employers helpline when I finally got through (as well as about there appalling phone wait times!)

One thing I can say - I changed the Tax code to what they told me to (ie back from 89T to 1000L and now Ive had a tax code change - to 1000L, so at least Im covered, until they do another daft change of course).

RTI and HMRC are just pants!!!  Wanted to send them an email to complain about it but Ive just lost the will......

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By taxhound
11th Apr 2014 14:45

@ Vaughan Blake1

Unfortunately this client was removed from self assessment for 2012/13 so they managed to make this little mess all by themselves.  I have not given up on one phone call though - there is no way I will allow them to leave this in place, despite what the call centre "helper" thought.  I will be going higher up the pecking order.

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By Vaughan Blake1
11th Apr 2014 15:05

Here's a cunning plan

Taxhound as the client has a UTR there is no reason why you can't file a 2013-14 SATR 'uninvited'.  Show the coded underpayment as '2013-14 tax coded in a later year' and secure the refund!  I have actually done this once on HMRC's advice!

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By taxhound
12th Apr 2014 12:13

@ Vaughan Blake 1

I had considered this, but it is a mess for the client.  Far better just to have the correct tax code surely....

It is the overwhelming arrogance of the person on the "helpdesk" telling me that it was too late to change anything and it was just tough that really grates...

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By Vaughan Blake1
14th Apr 2014 09:03

@ Taxhound

I don't disagree, but like you I feel I spend too much of my life chasing PAYE codes.  If at all possible it is easier to let 'em alone.

I had a client with three pensions one was £40K, the other £10K and another for £5K and they were all with the same pension provider.  Every year there was trauma, all BR, or all DO or all with a PA or any permutation other than the right one.  Then having got them right by about May, I would send in the SATR and they would all be amended, and off we went again.

Roll on the day when agents can change PAYE codes themselves online!  

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By Vaughan Blake1
16th Apr 2014 09:18

Best get a 64-8 in place

Cheshire, you are running a bit against the grain here.  These employees are not your clients.  If this is a regular issue you need to get 64-8s in postion for the 'regulars'.  It will save you time and effort.  I'm surprised HMRC play ball at all, as you have no authority to ask them to amend these codes.  It could be that an employee has income or allowances not known to their employer.

 

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By Cheshire
16th Apr 2014 19:07

Not sure why?

Ive not had an issue on a regular basis - just noticed an increase in odd and wrong coding in the last couple of months which at the time I thought were one offs.  I certainly wouldnt normally have questioned HMRC about a change in code but once I received the latest batch and being aware of  the previous ones that they had already issued wrongly, and this being such a dramatic change I decided to phone HMRC to ask if the code was right - wasnt sure if they would answer me or not, but thought I would try.

The previously incorrect ones were sent out completely erroneously by HMRC and no further information had to be provided to put them right - they just apologised and changed them (their mistake in sending them out).

Indeed Ive also had three family members who have also had completely duff coding letters and my own son is one (he had three coding letters in one envelope plus a reference to a business he hasnt even worked for!!). Stroppy letter will be winging its way to HMRC tomorrow!!!

I certainly didnt ask them to amend the code in this latter incident - the agent offered.  Given I was aware now of several problems, this made me think they had an issue which might be more widespread (especially given the earlier issues, as well). I did try to find out if HMRC had an issue - the agent was cagey and wouldnt answer my question, hence my posts on here.

 

 

 

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