Are HMRC Bullsh*tting Me?
Client has p/t employement income (at a school) and p/t self-employed income from her home-based business. All personal allowances are utilised against PAYE income. Tax return was submitted online in September 2012.
Amounts "currently" owed are:
31 Jan 2013: £980 (balancing payment for 2011/12)
31 Jan 2013: £1,200 (1st payment on account 2012/13)
31 July 2013: £1,200 (2nd payment on account 2012/13)
Box 2 of "Finishing Your Tax Return" on her SA100 return states "if you owe tax for 2011-12 and have a PAYE tax code, we will try to collect the tax due (if less than £3,000) through your tax code for 2013-14, unless you put 'x' in the box"
The helpsheet TRG 22 adds:
"If you owe tax of less than £3,000, and you have filed your return by 30 December, we will try and collect it through your 2013–14 PAYE tax code, if you have one."
The Revenue, most lately in the form of the (alleged) Business Payment Support Service, refuse to collect 2011-12's £980 through PAYE on the grounds that the total amount owed is £3,580 ie more than £3,000. I say the amount due is only £2,180 because the second instalment (of July 2013) is not yet due. My tax software (FTax) supports my view, having churned out a SA100 Payments Summary containing a £980 deduction from the January 2013 payment entitled "Adjustment due to change in 2013-14 tax code".
Does anyone please have any links that might support our case that the amount owed is less than £3,000 (so that 2011-12's £980 balancing payment can be collected via 2013-14 PAYE code)?