Tax in advance?

Tax in advance?

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A client of mine with property income specifically does not wish the tax to be dealt with through her code on her pension, paying in January and July under normal self assessment. So when a revised coding notice came through to collect property income it transpired that HMRC were attempting to collect 2007/08 tax in advance, otherwise due in 2008 (on account). They have now agreed to change the coding to ignore property income.
Christopher Adams

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By David Heaton
20th Aug 2007 14:10

Nothing unusual
The PAYE regulations require HMRC to include any non-employment income in the PAYE code, but give the taxpayer the right to object and pay under SA. This is deliberate, as it keeps many people out of having to file a SA return. The only problem comes when HMRC staff who do not know the rule refuse to take the non-earnings back out, which should not happen and is thankfully rare.

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By User deleted
20th Aug 2007 16:53

PAYE Coding
Further problem arises when client is making payments on account and the Revenue still tries to code out the other income. Then the client really is paying twice up front. Should be OK for represented clients - the agent will spot it (hopefully) but what about the unrepresented!?

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